Introduction
This essay is going to explain what kind of influence Changi airport which is Singapore international airport has been given to Singapore economic development. Moreover, how Changi airport can maintain the position as an important role that contributes to Singapore by using concepts of economy.
First of all, when people do vote in order to pick the best airport up in the world, they usually bring to mind about management and operation of each airport that they use (Worldairportsurvey.com, 2017). Like the fame that has won in ‘The best airport' part for 5 years (The Straits Times, 2017), Customers who use or work at Changi airport evaluates it highly. In addition, the team of management and operation of Changi airport does not handle only airport itself. They must manage guarantee effective operations (Changiairport.com, n.d.), contriving active actions of safety and security, making high-tech facilities, providing pleasant service for the customer and carrying forward epoch-making events in close partnership with many agencies and airlines of the airport.
Then through this success of Changi airport, it has been the significant part in Singapore economic progress.
2 Economic credits of Changi airport for Singapore economy
Air cargo: Air cargo means logistic supply chain management. In 1981, the Changi airport was opened. Since then, Changi airport settled as a pacesetting aviation center. The air cargo of Changi airport is one of the busiest in all around the world. They treat throughput of 1.97 million tons yearly. Moreover, The Changi airport own fortes in air cargo part can be classified into 3 categories. As the first action is combination entrance of logistics; Changi Airfreight Centre (CAC), Airport Logistics Park of Singapore (Alps), Cool chain facilities is planned clockwise to add effectiveness and efficiency. Furthermore, warehouse and office which is located at Airfreight Centre are well equipped for gratifying customers' running requirement. Secondly, the traffic of air cargo is coherence. For international Air Cargo Transportation, the airport has retained location which is major lodgment of airfreight. The last category is fulfilling standards. After Changi airport started their business, the goods have run at an average 7% annual rate. Changi airport founded new standards about operational efficiency and professionalism in order that they can meet the change of freight community. The strict average is for ensuring global level service from ground person in charge to cargo transport trader and consignor (Changiairport.com, n.d.).
Working place creation: People can encounter jobs that are relevant to Changi airport but not only in the airport. For example, commonly people recall workers who work in airport crew, security guard or cleaning maid. However, that is absolutely not all. To the extent that people cannot think, Changi Airport help to create a job for Singaporean. The job can be sorted into 6 groups. The first group is Direct-on airport. It includes all of the works like the hotel, food, retail business within the airport boundary. The second group of direct off-airport is also influenced by an airport. It means who work for the airport from outside like workers who work in airline office which is located outside of an airport. Also, indirect which is the third group, there is a job that supplies goods and services to the aviation industry. Such as OEF quotation work that is created energy partly because of the plane purchase of plane fuel; dealing in the aviation space industry because of aircraft equipment buying; airport build workers; and the workers who need for making things that are sold at airport retail store. The fourth group name is induced. This group is made when employees of flight (direct and indirect) expense their import. For instance, an employee of flight is helping employment for baker when he buys a hunk of bread. The fifth group is travel agencies. OEF also subjoined engagement of employee at the travel agency. This is because travel agency usually sells holidays with flight. The last name of the group is catalytic. Jobs of the local crowded on the back of the result of transportation link which is built by the airport (Aef.org.uk, 2017).
Other countries' Spread of hub airport
For several decades, Singapore has dominated major mean of transportation with Hong Kong that is one of the most powerful rivals (Nikkei Asian Review, 2015); these two of countries have been main vehicles which connect Asian trippers and travelers throughout the world. However, now many of factors are threatening the status of the supreme. Lots of countries are spending their funds to widen their hub airport around $1 trillion.
The half of this cost is going to be used for improvement or construction the new airport of Asia. In the case of Beijing, China, they shell out $12.9 billion for hub airport which is scheduled opening in 2019. This new hub airport of Beijing will transfigure capital of China to one of the biggest aviation hubs in the world. Moreover, Suvarnabhumi Airport of Bangkok has planned upgrades of 117-billion-baht scale that includes the third runway by 2021. Furthermore, Incheon international airport of a republic of Korea is disbursing $4.5 billion at the second terminal in order to be "The world's first-class hub airport." Then Hong Kong that Singapore must take warning the most have an initiative that reclaims partial area at expense of $18 billion for making the third runway.
As the part of an effort in order to keep as the main mean of transportation among other competition countries, Changi airport of Singapore opened the fourth terminal that is spent around $1.3 billion to the public. In the fourth terminal, there are dozens' automatic check counters and bag draft. Changi airport is the first airport which uses tomography scanner. It means passengers do not need to bring their laptops out to examine bags. The new terminal expanded total volumes from 66 million to 82 million. Singapore is already striving for third runway and fifth terminal which will be finished in 2020. Experts expect that this year passengers are going to increase to 60 million. Then Singapore is a vacation spot yet like Penang, Malaysia, or Phuket, Thailand, islands can be impracticability as becoming independent ways commercially (Whitley and Park, 2017).
Ready for the future development by infrastructure investment
Changi Airport Group (CAG) announced suggestion that extends the capacity of airfield so as to build more plane parking. This infrastructure capitalization can settle the problem of mounting passengers and aircraft traffic in the next few years. There are 3 opportunities for this investment.
Terminal 4; complete service & low-price carriers: T4 that possesses 16 million passengers during the course of a year, may treat 82 million passengers for a year. This investment guarantees that even though the traffic increase, passengers' experiences will not get damaged at Changi airport. Terminal 4 also got the ready flexibility that can satisfy the management requirements of complete service and low-price carriers. Mostly, it handles small body plane and is devised fast flight turnaround. Road betterment construction is realized to assure the smooth stream of the terminal. Here is included a new way to funnel extroverted transportation from terminal 4. Garbage which is for cars of 1,200 will be made beside the terminal.
Concentrating to productivity and effectiveness improvement: Viewed in an expectation manpower question which will be encountered to ground handlers of an airport of Changi and service partners, terminal 4 will provide a move intended to enhance the effectiveness of courses and productivity of resources. Terminal 4 will offer more kiosks that keep up with the trend of self-service option for self-check-in, self-bag dropping etc. By using these options, airlines and land-based managers can reduce time and workers that need to handle each flying. Furthermore, a plan which simplifies the process at the check-in part or immigration control is progressing for passengers' convenience. Moreover, in case of the baggage handling system part, the newest skill which workers aged also can deal with will be mounted in order to treat heavy burdens.
Increasing flying field: At the same time as exploitation of terminal 4, to support all of needs of airlines that are flown at Changi airport, the airport is going to fulfill primary airfield businesses for expanding the number of flying fields. Moreover, they also have a plan constructing new water tank in order to prevent flooding when deluge occurs through the large-scale ditch work that is going to use extra laminating and sealed surfaces (Mynewsdesk, 2013).
Conclusion
For Changi airport's advance, the role of government of Singapore is also very significant. In order to develop the Changi airport and Singapore Airlines, Singapore government is making an effort to Free Trade Agreements (FTAs) part of the connection with other countries.
FTAs are commerce and investment which make 2 or more economies easier (Iesingapore.gov.sg, 2017). FTAs favor forwarding and public-relations of trade liberally. Each country can trade goods or services. Singapore government already made free trade agreements with some of the countries. In case of Singapore, the scale is not really big beside the United States and China. However, the finance of Singapore is developed highly and ensure convenience of each enterprises activities. Then, many countries expect that the conclusion of contract FTA with Singapore will give new chance to their businesses; Bilateral FTAs, Regional FTAs, Concluded/signed FTAs, and FTAs undergoing negotiation (Iesingapore.gov.sg, 2017). Therefore, in order to repay the expectation, the government of Singapore must do more efforts, and the role of government will have a huge impact on the future of Changi Airport and Singapore.