Executive Summary (max 250 words) Table of Contents Introduction Currently Changi Airport is constructing Terminal 5 to increase their maximum capacity by 50 million passengers per year to enable them to handle a total of 135 million passengers. (“Changi East”, n.d.). This report will look at Changi Airport`s operations, sustainability and future of Changi Airport. Additionally, the success of Changi Airport`s operations will be assessed to understand their success. In this report, a conclusion regarding the need for Terminal 5 will be addressed and whether it can meet increasing demands for Changi Airport. I. Background to Changi Changi Airport Mission is stated as: “To be the world’s leading airport company, growing a vibrant air hub in Singapore and enhancing the communities we serve worldwide” (Changi Airport Group, 2016, p. 14). In this, Changi Airport`s mission indicates the need to address the increase in demand to be able to serve potential consumers. Changi Airport has retained its status as a leading aviation hub in Southeast Asia and Singapore(CAPA, 2013). According to eTurbo News (2012), Changi Airport`s strong performance has been due to its location within China, India and Australia. Other factors demonstrating this advantage has been indicated by their strong traffic performance, resulting to increasing tourism to Singapore. Changi Airport has also worked alongside their partners increase their routes and overall access towards other countries (eTurbo News, 2012). CAPA (2013) identifies Changi Airport`s ability to be a leading aviation hub to be due to their regional connections. This enables Changi Airport to have the competitive advantage to increase their consumer base within the Asian Region. Changi Airport`s location within Singapore particularly contributes towards creating an effective gateway between Asia and the Southwest Pacific, thus enabling them to receive more passengers. II. History of Changi According to the Changi Airport Group (n.d.), Changi Airport first operated in Paya Lebar in 1959 as Paya Lebar Airport. In 1960, the capacity of Paya Lebar airport was 300,000 passengers with 30,000 flights occurring in the year. The Singapore Government (2014), stated at 1975, the airport had made a big decision to relocate from Paya Lebar to Changi. The relocation to Changi was made due to difficulty managing their capacity of a passengers in Paya Lebar had they continued to operate there. In 1981, Changi Airport has become operational (Changi Airport Group, n.d.), which has enabled them to address the problem of air traffic they were facing. The Singapore Government (2014) mentioned at least 8.7km of land in the area Changi was reclaimed. This allowed Changi Airport to have sufficient space that Paya Lebar Airport did not have. In addition, the Changi Airport`s decision in this location is to enable future expansions without interference in operations (Singapore Government, 2014). In 1977, Changi Airport has managed to reclaim the land and plans construction for construction began (Changi Airport Group, n.d.). The Singapore Government (2014) has identified Changi Airport`s construction is divided into two phases to prepare for their operations. Additionally, Tan (2014) has mentioned that Changi Airport`s location has also planned for Terminals and proposed infrastructure that was necessary for the airport. This would enable to ensure that Changi Airport`s expansions are feasible in the future when it is needed. Tan (2014) also identifies that one of the early issues Paya Lebar Airport faced was spacing for an expansion. Some restrictions faced by the Paya Lebar Airport at that time included the limited amount of land to create and expansion for the airport. According to Tan (2014), the location of Changi Airport enables expansions to be made efficiently, resulting to Changi Airport being effective. III. A typical international airport operation (Most Info on) § Describe the value chain for passengers’ operation at Changi airport (Terminal 1, 2, 3 and possible Terminal 4). § Identify and describe key milestones of passengers’ transformation through Changi airport for both inbound and outbound passengers. In the early 1970’s, Paya Lebar Airport, then Singapore’s civil airport, did not have sufficient space for future expansion of the airport and as such, the decision to relocate to the current Changi air base was selected. This is due to Changi’s strategic location as well as it not interfering with high-rise developments (Hutton, 1981). On 29th December 1981, Changi Airport is officially declared open (Changi Airport Group, 2014, p. 2). Changi Airport successfully surpassed its 10 millionth passenger milestone in 1981. Thus, the construction of Terminal 2 also begun in order to handle the increasing amount of inbound and outbound passengers (Changi Airport Group, 2014, p. 3). By 22nd November in 1990, Terminal 2 is opened for scheduled flight operations and is officially opened in 1st June 1991 (Changi Airport Group, 2014, p. 4). A Budget Terminal was opened on 26th March 2006 to serve budget airlines such as Tiger Airways and Cebu Pacific. However, it was announced that all budget airlines will be moved to Terminal 2 as it will be closed from 25th September 2012 onwards for the development of Terminal 4 (Changi Airport Group, 2014, p. 12) Terminal 4 began construction on 4th November 2013 and is expected to be completed and officially opened in June 26 2017. With the completion of Terminal 4, it will have a total capacity of 16 million passengers annually, up from the previous 7 million of the Budget Terminal. Not only that, it was announced that “Terminal 4 would come with design and process innovations that were set to redefine passengers’ travel experience, raise operational efficiency and manpower productivity for airlines and airport agencies” (Changi Airport Group, 2014, p. 13) As of now, Changi Airport has a handling capacity of up to 66 million passengers per year and these figures are expected to grow as well with the completion of the upcoming Terminal 5 as the initial capacity for T5 is likely to be up to 50 million, but can be increased to 70 million if needed, as announced by Transport Minister, Lui Tuck Yew on 7th May 2013. It is said the development of Terminal 5 and related facilities will not only boost Singapore's overall aerospace sector, but is also able to provide thousands of jobs during construction and upon completion (Kaur, 2015). § List enhancements to Changi airport’s core business of moving passengers and their value adding to customers. § Identify the supply chain for passengers’ operation at Changi airport. IV. Sustainability and air travel/airports One of the key components to Changi Airport`s success is their application of sustainable practices to maintain successful operations. Changi Airport`s areas of economic sustainability is aimed towards working with their partners towards attracting tourism in Singapore (Changi Airport Group, 2015). In doing so, they can ensure Singapore`s economic environment grows. Additionally, the Changi Airport Group (2015) identifies the need to work alongside the Singaporean Government towards the sustainable growth of Singapore. In maintaining economic growth, Changi Airport can maintain their consumer base. Maintaining economic sustainability is essential towards Changi Airport`s success as this ensures the profitability of Changi Airport`s operations. Changi Airport has shown to create social sustainability through their practices. Examples of Changi Airport`s initiative include supporting disadvantaged youths, funding and volunteering for educational initiatives and vocational education to prepare students for employment (Changi Airport Group, 2016). Changi Airport has also applied their practices and policies to guide operations within the airport to help improve the future of Changi Airport (Changi Airport group, 2016). With this, this identifies Changi Airport looking towards sustainability as a guide for how their operations are conducted. Additionally, according to the Changi Airport Group (n.d.), they implement policies focusing on environmental approaches towards meeting business objectives. Changi Airport`s Environmental initiatives include energy efficiency, water management, waste management, noise management (Changi Airport Group, n.d.). In addition, Changi Airport has taken an active role towards their environmental sustainability towards improving publicity (Changi Airport Group, 2016). Changi Airport has utilised their environmental practices to reduce costs while preserving the environment (Changi Airport Group, n.d.). These practices have exemplified Changi Airport`s capability of maximising efficiency on resource usage while being cost effective. Changi Airport`s demonstration of environmental sustainability in their operations has also been beneficial towards their success and promoting their brand image. V. The Future of Changi airport § Terminal 5 § Forecasting and demand planning Conclusion and Recommendations References Changi Airport Group. (2016). Journey of transformation. Retrieved from http://www.changiairport.com/content/dam/cacorp/publications/Annual%20Reports/2016/CAG%20Annual%20Report%20FY1516.pdf. Changi East. (n.d.). Retrieved from http://www.changiairport.com/corporate/partner-us/changi-east.html CAPA Centre for Aviation. (2013). Singapore Changi ensures its future as leading ASEAN hub with third runway and fifth terminal. Retrieved from https://centreforaviation.com/insights/analysis/singapore-changi-ensures-its-future-as-leading-asean-hub-with-third-runway-and-fifth-terminal-124193 Changi Airport Group. (n.d.). Our Story. Retrieved from http://www.changiairport.com/corporate/about-us/our-story.html?anchor=bright-future Singapore Government (2014). Changi airport officially opens. Retrieved from http://eresources.nlb.gov.sg/history/events/68246555-3f57-45cb-8a3f-d3813ee6bc5a Tan, B. M. (2014). Changi Airport. Retrieved from http://eresources.nlb.gov.sg/infopedia/articles/SIP_574_2004-12-23.html Hutton, P. (1981). Wings over Singapore : the story of Singapore Changi Airport. Singapore: MPH Magazines. Changi Airport Group. (2014, July). Major Milestones. Retrieved from Changi Airport: http://www.changiairport.com/content/dam/cacorp/documents/changiairportgroup/CAG%20Major%20Milestones%20Jul%202014.pdf Kaur, K. (2015, March 4). Changi's T5 to be bigger than 3 current terminals combined. Retrieved from Straits Times: http://www.straitstimes.com/singapore/transport/changis-t5-to-be-bigger-than-3-current-terminals-combined