Speech by Senior Minister Goh Chok Tong at the Singapore Aviation Centennial Evening Dinner, 16 March 2011 at Compass Ballroom East, Resorts World Sentosa

                        A hundred years is a long time given the short history of independent Singapore. So, many of us may not know or recall the key milestones of our aviation history. I certainly did not know when the first flight took off in Singapore.   Well, it took off at the old race course at Farrer Park in 1911. There, an excited crowd gathered to watch aviator Joseph Christiaens start the engine of his Bristol Boxkite Biplane. It was the first time they had seen powered human flight. For Singapore, it was the start of a remarkable flight of our aviation industry. This evening, I am delighted to join you to commemorate 100 years of aviation in Singapore. This dinner marks the start of the year-long Singapore Aviation Centennial Celebrations.

Aviation in Singapore

2                     Singapore has always thrived on its connectivity as a trading city. With our geographical position and deep natural harbour, we quickly became a major port and transhipment hub. When commercial aviation became practical, the Government seized the opportunityto develop Singapore’s air connectivity.

3                     Good air connectivity enhances our attractiveness as a global city, an international business centre and a manufacturing hub. It is a key factor in attracting investments and tourists. Hence, the Government adopts a liberal aviation policy, welcoming all countries to establish air links with Singapore and foreign airlines to operate at our airport. Our liberal aviation policy encourages free competition and excellence in services and prices.

4                     In 1972, we set up Singapore Airlines after Malaysia-Singapore Airlines ceased operations. From the beginning, the Government required Singapore Airlines to compete on its own, with no special help from the Government. Protectionism would not work, given the small domestic market. SIA quickly rose to the challenge and became one of the best global airlines.

5                     The Government also invested strategically and built capacity ahead of demand in the development of airport infrastructure. Our first civil airport was built in 1937 at Kallang. The runway ran across Fort Road and Mountbatten Road and the roads had to be closed whenever there was a landing or take-off. Nowadays, we also occasionally close part of the roads, but for marathons and mass walks. Fortunately, air traffic was light at Kallang, with only 15 to 20 flights a day carrying six to eight passengers on each plane. When night flights were introduced later, the airport staff had to lay ‘goose neck’ or kerosene lamps at intervals along the runway for the night landings.  The passengers must have had real confidence in the skills of the pilots. As civil aviation grew rapidly, Kallang soon became too small and could not cope with the bigger new aircraft. The airport shifted to Paya Lebar in 1955. However, the surrounding areas of Paya Lebar became built up and in 1975, the Government decided to build a new airport at Changi.

6                     Changi Airport received its first commercial aircraft in 1981. By 1988, it had surpassed the 10 million passenger milestone and received its first Best Airport Award. Many more awards followed. We continued to build up Changi Airport with new terminals ahead of passenger demand. It was one of the first countries to have a dedicated budget terminal for low cost carriers and gates specially customised for the Airbus A380.

Continued Growth of Aviation in Singapore

7                     Over the years, our aviation industry expanded into new areas. In-roads were made into the fast growing aerospace engineering sector with the formation of SIA Engineering Company and Singapore Technologies Aerospace. Both continually invested in new capabilities and infrastructure, and have grown significantly to become important regional players. More recently, the Government has also decided to develop Seletar into an integrated aerospace park to serve the aerospace sector as it enters its next stage of growth.

8                     Today, Singapore is a thriving well-connected air hub for both full service and low cost carriers. Last year, Changi Airport served over 42 million passengers, marking a new record in the airport’s history. Supported by our good air connectivity, Singapore ranks second in the 2009 World Bank study on logistics services. We are also the leading aerospace engineering centre in the Asia Pacific.

9                     Our excellence in aviation is not confined to the civilian sector. To safeguard our national interests, we pursued excellence in military aviation as well. Singapore set up the Singapore Air Defence Command (SADC) in 1968 when the British announced their decision to pull out of Singapore. The SADC was gradually transformed into the Republic of Singapore Air Force. Over the years, we have built up our capabilities and we now operate many advanced platforms such as the F-15, F-16 and Apache helicopters.

10                  On the international front, Singapore has been elected into the International Civil Aviation Organisation (ICAO) Council since 2003. This allows us to contribute to ICAO's work in promoting the safety, security and sustainable development of international civil aviation. Through training programmes offered by the Singapore Aviation Academy, we are sharing our experience with friends and partners from around the world, and contributing to international civil aviation.

Aviation and Singapore

11                  Aviation is now an integral part of our economy, contributing over 3% to Singapore’s GDP in direct value-add. As an enabler of people and business connections, aviation has a far reaching impact on the economy and society. Through aviation, Singapore is connected to the international networks of enterprise, talent and ideas. Singapore could not have become the global city it is today without a good airport with superior air connectivity. This has played an integral role in attracting over 7,000 MNCs and over a third of Fortune 500 corporations to base themselves here.

12                  Aviation has also enriched the lives of Singaporeans. Our air connectivity and rising income have enabled our people to travel freely, widely and from a very young age. That was not always so. I took my first plane ride at the age of 25, to Kuala Lumpur for a Ford Foundation scholarship interview.

Overcoming Future Challenges

13                  While Singapore has built a good track record, we should also be mindful of the challenges ahead. Aviation is a dynamic, fast changing industry. In recent years, we have seen new generation planes like the Airbus 380 and Boeing Dreamliner which can carry more passengers and fly further distances, potentially by-passing Singapore. Companies with new business models are emerging and aspiring to displace the leaders of today, as seen in the competition between the low cost carriers and traditional full-service carriers.

14                  Our success in international aviation has made us a model for others to follow. Many countries have aspirations to be a major aviation hub and have taken similar steps as us in investing in aviation infrastructure and liberalising their policies. Greg Lindsay in his book “Aerotropolis: The Way We will Live Next” described how Dubai was developing into an “Aerotropolis”, a city planned around its airport, and there are many other examples in the Middle East, China, India and Latin America. Every aerotropolis is locked in competition with every other one. Everyone wants to be a hub; nobody wants to be the spokes. Singapore had a head start as an aviation hub but other countries and new hubs are fast catching up.

15                  We therefore cannot afford to rest on our laurels but will have to constantly innovate, stay nimble and push the boundaries. It is for this reason that we decided to corporatise Changi Airport in 2009 so that it would have the autonomy and flexibility to innovate and respond quickly to the rapidly changing needs of the market. After corporatisation, the Changi Airport Group (CAG) rolled out the Changi Airport Growth initiative to enable the CAG to work more closely with its airline partners. CAG seeks to understand their unique operational requirements and to customise solutions for them. To date, the CAG initiative has helped to attract a number of new airlines to Changi. This in turn has boosted Changi’s air traffic network and enhanced its status as an international air hub.

16                  We also need to continue with our strategy of open skies and pursuing links with as many cities as we can. A liberal air services framework will allow carriers to respond to changing consumer demands as and when they arise. To date, Singapore has Air Services Agreements with more than 100 countries, of which more than a third are Open Skies Agreements. Changi Airport itself is linked to over 200 cities.

17                  The key factor behind the success of our aviation industry is people - people like Mr J Y Pillay, who grew Singapore Airlines into a global brand, and the late Mr Sim Kee Boon, who spearheaded the biggest civil project in Singapore then - the construction and management of Changi Airport. We need to ignite new passion for aviation among our youth and develop them. We need to continue to invest in the people who are the foundation of our aviation industry. We must also develop a core of aviation professionals who can contribute in international fora and be at the forefront in addressing future challenges in air traffic management and aviation security to strengthen the aviation industry. I am glad the Aviation Manpower Programme (AMP) launched by CAAS last year will provide scholarships to young talent for further studies, fund skills upgrading and executive development programmes as well as student outreach activities.

Conclusion

18                  Singapore has made great strides in aviation. Tonight, I congratulate the Singapore aviation industry for its achievements over the last 100 years. I also thank the many outstanding individuals and teams who helped us succeed. The prospects for the Singapore aviation industry are bright. I am confident that the Singapore aviation industry will continue to soar.

19                  I wish you a good evening.