Business and Operations Review

38 CHANGI AIRPORT GROUP 39 ANNUAL REPORT 2018/19 Global Connectivity

CONNECTING SINGAPORE TO EUROPE Eastern/Central Western Europe Europe Austria OVER 380 CITIES IN ABOUT Albania Belgium* Azerbaijan* Denmark 100 COUNTRIES AND Bulgaria Estonia Croatia Faroe Islands Czech Republic Finland TERRITORIES WORLDWIDE Hungary France Poland Germany Romania Great Britain (UK) Russia Greece Serbia Ireland Slovenia Italy Turkey Lithuania Ukraine Luxembourg* Norway NORTH Portugal AMERICA Spain 40 Canada Sweden Mexico Switzerland United States The Netherlands

*freighter only CHANGI AIRPORT GROUP 52 110 CITY LINKS CITY LINKS ASIA Central Asia South Asia Turkmenistan* Bangladesh Uzbekistan Bhutan AFRICA India Eastern South Africa Middle East Maldives Africa Botswana Bahrain Nepal Burundi Congo Egypt Sri Lanka SOUTHWEST Ethiopia Mozambique Qatar PACIFIC Kenya South Africa Saudi Arabia Southeast Asia Australia Mauritius United Arab Emirates Brunei Darussalam Cook Islands Rwanda West Africa Cambodia Fiji Tanzania Burkina Faso Northeast Asia Indonesia New Zealand Uganda Ghana China Laos Norfolk Island Ivory Coast Hong Kong, SAR Malaysia Papua New Guinea North Africa Niger Japan Myanmar Samoa Chad Nigeria Macau Philippines Solomon Islands Seychelles Republic of Congo South Korea Thailand Tonga 41 Zimbabwe Taiwan Vietnam Vanuatu *freighter only ANNUAL REPORT 2018/19 28 127 67 CITY LINKS CITY LINKS CITY LINKS Air Traffic Statistics

(in millions) FY2018/19 66.3 PASSENGER FY2017/18 63.0 MOVEMENT FY2016/17 59.4 66.3 mil FY2015/16 56.7 FY2014/15 54.0

(in millions) AIRFREIGHT MOVEMENT FY2018/19 2.14 (Tonnes of Airfreight) FY2017/18 2.14 2.14 mil tonnes FY2016/17 2.0 42 FY2015/16 1.87 FY2014/15 1.85

(in thousands) FY2018/19 386

FY2017/18 377 CHANGI AIRPORT GROUP COMMERCIAL AIRCRAFT MOVEMENT FY2016/17 362 386,000 FY2015/16 351 FY2014/15 339 @changiairport on Instagram

43 ANNUAL REPORT 2018/19

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t was another year of healthy growth for the aviation industry, on the back of reasonable oil prices and 44 Isustainable profits for the global airline industry.

Changi Airport registered a strong performance, handling a record 66.3 million passenger movements in FY2018/19, up 5.2% over the last year. Aircraft movements rose 2.3% to reach 386,000 flights. Traffic to all regions saw growth, with double-digit increases for CHANGI AIRPORT GROUP the Americas (+22%), Europe (+16%) and Africa (+13%).

Among Changi’s top five markets (Australia, China, Indonesia, Malaysia and Thailand), China and Australia both moved up a notch to take the second and fourth spot respectively, compared to the same period last year. The top five routes by passenger movements were Kuala Lumpur, Bangkok, Jakarta, Hong Kong and Manila.

During the year, four new airlines – Guangxi Beibu Gulf Airlines, Juneyao Airlines, LOT Polish Airlines and Shandong Airlines joined Changi’s family of over 100 airlines. Nine new city links were also established to China (Nanchang, Xuzhou), Germany (Berlin), India (Guwahati, Pune*, Vijayawada*), Indonesia (Belitung*), Thailand (Chiang Rai) and Poland (Warsaw).

* This service has since ceased operations. and encouraged participants to pick up the Polish language in an interactive manner, featuring Singapore World Beatbox champion Dharni Ng.

With the addition of the Berlin and Warsaw services, Changi Airport is now connected to 19 cities in Europe. As a result, weekly seat capacity to Europe increased by 15% from the previous year.

On the ultra-long-haul front, Singapore Airlines launched the world’s longest flight to New York (Newark Liberty International Airport) in October 2018 followed by a non-stop service to Los Angeles in November. United Airlines also added a second daily non-stop service to San Francisco. Today, Changi Airport has 41 weekly non-stop services between Singapore and United States, a significant increase from none just two years ago. 45 STRENGTHENING CHANGI’S ROLE IN THE REGION Asia continues to be a key driver of growth for Changi Airport. In FY2018/19, 6.9 million passenger movements (+8%) were registered between Singapore and China, and 4.9 million passenger movements (+11%) between Singapore and India. Total passenger traffic from China and India ANNUAL REPORT 2018/19 accounted for close to a fifth of total Above: DEEPENING LONG-HAUL passenger traffic at Changi Airport. Singapore is now directly linked to CONNECTIONS Poland with LOT Singapore’s connectivity with Europe With new links to Guwahati, Nanchang Polish Airlines’ was strengthened, with Scoot and Xuzhou, Changi Airport is now non-stop service to Warsaw. launching four weekly services connected to 37 Chinese and 15 to Berlin, and LOT Polish Airlines Indian cities, a new record high. In Left: Jetstar Asia is the commencing non-stop services to particular, the Singapore-Guwahati sole carrier operating Warsaw. With LOT Polish Airlines’ service was a significant milestone as direct services Guwahati is Changi Airport’s first air between Singapore new service, Singapore is now directly and Xuzhou. connected to Poland. From its base in link to Northeast India. The new service Warsaw, LOT Polish Airlines provides connects Singapore directly to the state connectivity to more than 40 cities in of Assam. Central and Eastern Europe, expanding the range of onward destinations During the year, CAG embarked on available to passengers from Singapore. a new initiative to work with travel agents to offer charter flight services As part of ongoing efforts to promote to new destinations in China, such as the Singapore-Warsaw route, a to Guiyang, Xuzhou and Zunyi. These marketing campaign ‘Polish Your charter services are key to cultivating Polish’ was rolled out in March 2019, demand to new cities and paving the targeting Singaporeans to increase their way for scheduled services. Charter awareness of LOT Polish Airlines’ service services to other Chinese cities such and Poland as a travel destination. The as Hefei, Hohhot and Yichang are also campaign took on a gamified approach being explored. GROWING TRAVEL DEMAND For its efforts to grow and market CAG continues to enhance WITH OUR PARTNERS the Singapore air hub, Changi Singapore’s pharmaceutical handling CAG made inroads to grow Airport was crowned the winner capabilities with the Pharma@ the inbound fly-cruise sector in in the ‘Over 50 Million Passengers’ Changi air cargo community. FY2018/19. CAG, Costa Cruises category at the World Routes These include dialogue sessions on and Singapore Tourism Board Marketing Awards 2018. best practices in pharmaceutical entered into a four-year tripartite The annual awards recognise transportation and feedback review partnership which leverages Costa’s excellence in air hub marketing. sessions at the annual Pharma global presence, Singapore’s cruise Shipper forum organised by CAG. hub status and Changi Airport’s CHANGI AS A CARGO HUB CAG is also a Strategic Member air hub connectivity to enhance In FY2018/19, Changi Airport of Pharma.Aero, which facilitates Southeast Asia’s appeal as a cruise handled 2.14 million tonnes of cross-industry collaboration destination. Joint-marketing airfreight throughput. Against among pharma shippers, cargo campaigns and attractive packages the backdrop of the slowdown communities, airport operators and rolled out in various markets in world trade and a challenging other air cargo industry stakeholders in Europe and Americas are global air freight market, import, towards the achievement of expected to bring in over 112,000 export and transshipment flows at excellence in reliable end-to-end air international fly-cruise visitors to transportation for pharmaceutical Changi Airport remained flat for Singapore over the next four years. shipments. the year. In December 2018, Changi Airports On the e-commerce front, CAG Changi Airport serves 24 cargo International (CAI) was awarded the has been collaborating with various airlines operating over 320 contract to operate Fukuoka Airport agencies such as the Economic weekly scheduled freighter flights, and CAI took over the operations Development Board, Enterprise linking Singapore to 48 cities. 46 at the airport in April 2019. With Singapore, and seaport operator this new development, Fukuoka In October 2018, FedEx Express PSA to anchor cross-border and International Airport embarked on introduced eight weekly flights intermodal e-commerce cargo initiatives to grow its catchment between Singapore and Sydney, flows. traffic with strategic partners, bringing FedEx Express’ network starting with a collaborative in Singapore to 50 weekly flights. Changi Airport was awarded the partnership agreement between The added capacity represents an ‘Airport of the Year’ at the World CAG, the airport and Singapore incremental growth of more than Air Cargo Awards 2018 for the first Airlines. Joint marketing activities 60% to Changi’s freighter capacity time, as well as ‘Best Green Airport’ by the three parties aim to grow on the Singapore-Australia route, and ‘Best Airport – Asia (over 1 CHANGI AIRPORT GROUP travel between the Kyushu region strengthening Singapore as a million tonnes)’ at the Asian Freight to Singapore, Southeast Asia and gateway to the Southwest Pacific Logistics & Supply Chain Awards beyond. region for cargo flows. 2018.

Left: FedEx Express expanded its flight network in Singapore with the introduction of eight weekly flights between Singapore and Sydney. Open mind, successful partnerships As the region’s premier gateway, growing connectivity to cities around the world is key. Changi Airport engages with airlines to expand their networks here, and works with like-minded partners to drive passenger demand through Changi.

These responsibilities lie with staff members like Alicia Chen, Senior Manager with the Airline Development Team in CAG’s Air Hub Development Cluster. For her, the challenge lies in “aligning the stars” to realise a route, based on passenger demand and airlines’ interests, and managing surprises and the unexpected.

One notable occurrence was in 2012. One of her airline accounts had unexpectedly decided to downsize its operations at Changi as part of network restructuring. As it is a major partner for many others at Changi, Alicia and her team immediately engaged the airline and others that were directly affected to put in place measures to cushion the likely dip in passenger traffic.

Changi continued to engage the airline closely over the next few years. In 2017, it announced a comeback at Changi, expanding its network and capacity. The team welcomed back this long-time partner and collaborated on joint promotions to boost traffic. Alicia says this positive development was a team effort and marked a highpoint in her CAG career.

Overall, Alicia notes her job has transformed how she assesses and manages situations, and that relationship-building is key. She shares, “The environment is dynamic, and I have learnt to keep an open mind because sometimes, even if things don’t go well now, it doesn’t mean they will not work out later.”

Alicia Chen Senior Manager, Airline Development Re⁻imagining the Ultimate Airport Experience

irports are traditionally a stressful environment. Yet at Changi, an entirely different airport AMAZING Aexperience is envisioned. Beyond delivering efficient airport operations and ensuring EXPERIENCES a safe and secure environment to fly, Changi Airport prides itself on its world-class facilities and service excellence to deliver a personalised, stress-free and positively surprising LIKE NO Changi experience to every passenger. In the pursuit to bring the best to every passenger, CAG is OTHER humbled to be recognised for these efforts. At the Skytrax awards in March 2019, Changi Airport was named the World’s Best Airport for the seventh consecutive year and the 10th time in the 20-year history of the World Airport Awards.

Changi Airport also scored a record of 4.997 out of 5 in the Airports Council International’s Airport Service Quality (ASQ) surveys and was named Best Airport by size and region. In addition, Changi Airport was recognized for ‘Best Environment and Ambience’, ‘Best Infrastructure and Facilitation’ and ‘Best Customer Service’ for airports that serve more than 40 million passengers a year under the ASQ awards.

A REFRESHED GREETING As part of CAG’s efforts to expand capacity and enhance passenger experience, the new T1 Meeters and Greeters Hall opened in April 2018, and is fully integrated with Jewel. With a 35% increase in floor space and more baggage belts, T1’s handling capacity increased by another three million passengers per annum (mppa) to 24 mppa. The refurbished hall also features a 460-square-metre Arrival Garden, welcoming passengers with brightly-coloured dragonfly topiaries accompanied by a specially curated collection of flora and palm trees.

In anticipation of the additional traffic brought by Jewel, the new Opposite Page: delight to all. Consisting of over Changi’s Wizarding World mesmerised 20 different touch-points and 10 both the young zones spread over 3,000 square and young-at-heart metres, the studio uses cutting- with a daily snow and fireworks edge technology to present an show at a wintry eclectic mix of sensory experiences, Hogsmeade Village- inspired setup at T3 including interactive games, Departure Hall. projection storytelling, immersive

Left: shows and gallery exhibits. The Changi Lounge, located opposite the Capturing delightful moments at Jewel Early Check-in Lounge, is the first Changi Airport, CAG launched lounge operated its own souvenir store, allowing directly by CAG. visitors to bring a memento of Changi Airport home with them. Located next to the CES, Gift by Changi Airport carries original commissioned Changi-themed merchandise, including unique souvenirs such as fragrance products featuring the familiar Changi Scent, Changi gardens- themed chocolates, as well as magnets, pouches and coasters T1 coach stand started operations Adding to the hassle-free designed by local artists. 49 in October 2018 with a total of 54 experience, passengers flying with coach bays – a 20% increase in over 20 airlines at Changi Airport CREATING MAGICAL MOMENTS capacity. To enhance the passenger can now check in up to 24 hours AT CHANGI experience at Changi Airport, the before their flight at the Jewel Early The year-end holiday season is new T1 and Jewel car park opened Check-in Lounge. This represents always an exciting time at Changi in November 2018, bringing 70% of departing passengers Airport. Visitors were treated to a another 2,500 parking spaces. who are currently eligible for magical ‘Wizarding World Holiday’ There are now over 8,000 parking early check-in. The early check-in at the world’s first ever Harry Potter spaces across the entire Changi facilities at Jewel are made possible and Fantastic Beasts event held Airport. with the upgrading of the baggage outside a theme park during the ANNUAL REPORT 2018/19 handling system at T1 to a fully year-end festive season. Fans were DELIVERING INNOVATIVE automated Early Bag Storage transported into the enchanting EXPERIENCES System. The services are available world as the T3 Departure Jewel fully opened on 17 April from 6.00 am to midnight daily, Hall transformed into a wintry 2019. Apart from attractions for and up to 400 passengers can use Hogsmeade Village, depicting travellers and visitors, it also houses the facilities every hour. the picturesque town with snowy aviation facilities to bring more rooftops set against the backdrop convenience to passengers flying The development of Jewel also of the grand Hogwarts castle. through Changi. presented an opportunity to set The elaborate set would come alive up an innovation space to tell the in a daily snow and light show, The Changi Lounge at Level 1 Changi Airport story through fun- where the iconic Hogwarts Express allows fly-cruise and fly-ferry filled experiences. Housed on Level train lights up, taking fans on a passengers the convenience of 4 of Jewel, the Changi Experience magical adventure. checking in at the airport for Studio (CES) is a state-of-the-art their cruise or ferry and seamless aviation-themed attraction that Collaborating with South Korean baggage transfers to the maritime takes visitors on a journey of illustrator Sungan Park to create terminals, with their baggage fun and discovery through the lifelike hand-drawn illustrations, delivered directly from the airport virtual world of Changi Airport. captivating life-sized setups of on arrival. While in the lounge, A brand-new concept, the studio familiar scenes in the Harry Potter passengers can take advantage was conceived and designed by and Fantastic Beasts films such as of shower facilities, refreshments CAG to tell interesting stories Diagon Alley and the Whomping and comfortable seating to refresh of Singapore’s air hub and the Willow located across the different themselves between their flight inner workings of the airport in terminals at Changi delighted fans arrival and cruise or ferry departure. a way that brings wonder and and visitors. Visitors even got a Left: Changi’s service staff lauded for their exemplary acts of kindness in the Annual Airport Celebration 2019 graced by Dr Lam Pin Min, Senior Minister of State, Ministry of Transport and Ministry of Health.

chance to experience a Hogwarts China. Produced by the same and Certis Aviation Security to student’s life by dressing up as a renowned team that brought launch the Make Someone’s Day wizard, learning how to cast a spell together Peranakan Love Story, campaign with the aim to enhance and practising their Quidditch skills the film plays every 30 minutes, the immigration experience of at Diagon Alley at T3. delighting passengers as they start passengers passing through Changi their journey. For international Airport. Officers were encouraged To complete the experience, fans travellers, the film gives a unique to create delightful moments could also bring home a memory glimpse into Singapore’s heritage through simple but thoughtful 50 of their spellbinding adventure at and culture, offering an authentic gestures, such as a bright smile or a Changi Airport with Wizarding sight of Singapore without even warm greeting, and were rewarded World plush toys and cushions, stepping out of the airport. with tokens of appreciation for including an exclusive Gryffindor making a passenger’s day brighter. scarf. At the end of the festive A ONE CHANGI SYMPHONY With active participation from more season, close to 120,000 premiums At Changi Airport, every member than 1,300 ICA and Certis officers, were redeemed. of the over 50,000-strong airport the campaign received positive community plays an important feedback with more than 1,700 The popular setup attracted over role in creating the best passenger service act nominations received 380,000 visitors across 52 days experience possible. Every year, over three months. CHANGI AIRPORT GROUP and more than 56,000 were Changi Airport receives more mesmerised by the Hogsmeade than 40,000 compliments from BUILDING TO SERVE YOU BETTER Village daily snow and light shows. passengers whose lives have been To meet the growing demand for touched by these dedicated airport air travel, CAG will be expanding CELEBRATING A LABOUR staff. From saving lives to T2, which was last refurbished in OF LOVE averting potential theft cases, 2003. The project will increase T4, Changi’s newest terminal, time and again, such exemplary the terminal’s capacity by up to marked the year by unveiling acts have been commended at five million more passengers a the airport’s newest play area. Changi Airport’s Annual Airport year, to 28 million mppa. With the Standing at 15 metres tall, the Celebration. As Changi Airport introduction of more automated five-storey crimson red playground continues to grow, it is vital for check-in kiosks, biometric-enabled – Chandelier – is a double-helix net the over 200 airport partners and bag-drop machines and automated structure that promises fun and agencies to work in synergy and immigration gates, travellers can play for all at the terminal’s transit close collaboration. This spirit of look forward to greater convenience area, taking the stress off travelling collaboration is fueled by the ONE and a seamless travel journey. and transforming the Changi Changi initiative, which serves as Works will start at the end of 2019 experience to one that excites. the driving force behind CAG’s and are expected to take up to five continuous pursuit of service years. Riding on the positive feedback on excellence. the six-minute musical Peranakan Love Story which plays at the T4 To strengthen the ONE Changi Heritage Zone, CAG launched work culture and encourage service Nanyang Blossom, a film set in excellence, CAG works closely with the 1830s Lion City that tells of its key airport partners. In 2018, a heroic romance tale between CAG partnered the Immigration two young migrant workers from and Checkpoints Authority (ICA) FAST and streamlined departure experience The opening of T4 marked the deployment of the full suite of Changi’s Fast and Seamless Travel (FAST) self-service options for departing passengers. Chua Ching Hock was Senior Manager with the T4 Operational Readiness and Airport Transfer (ORAT) team at the time, overseeing key projects like the implementation of FAST and T4’s opening.

“As FAST is a pilot initiative, we employed design-thinking strategies to build the automated machines and the user interface,” said Ching Hock. They had to be user-friendly, intuitive and visually appealing.

Through it all, Ching Hock says passengers’ needs were always at the heart of the team’s decisions. Over the course of his 11-year CAG career, Ching Hock has seen a transformation within Changi’s Airport Operations Division. As Changi’s passenger numbers grew, rather than just increase staff numbers to meet increasing demands, CAG leveraged on automation and data analytics as key solutions.

“The scope of work within the division evolved as managing automation programmes entails a different set of skills. Besides being familiar with the systems, you must also look at how to use the data collected to further improve passenger experience.”

Looking back, the father of one says his four years with the T4 team was a defining experience. “It is not every day that one is involved in the opening of a terminal, perhaps only once every 10 years. T4 is like my ‘second baby’!”

Chua Ching Hock Senior Manager, Departure Experience, Airport Operations Re⁻inventing The Changi Retail Experience

over 1.4 million entries, solidifying its place as Changi Airport’s most popular promotion. With an PLETHORA overarching Luck is Everywhere campaign concept, travellers were greeted with lucky charms like rainbows, four-leaf clovers and OF DELIGHTS Right: prosperous ‘88’ butterflies around The S is for Sharing the terminals. Every qualifying Sesame Street live show saw characters TO THRILL spend entitled shoppers and diners such as Elmo and a shot at winning one of two Cookie Monster enthrall audiences grand prizes – S$1 million cash or young and old. PASSENGERS the new Jaguar E-PACE, among other attractive instant prizes. At the end of the promotion, 14 finalists competed in the ultimate showdown of luck with a game of Scissors, Paper, Stone. Chinese shopper Chen Rou Jing was eventually crowned the ninth 52 oncession sales at Changi Airport hit an all-time Changi Millionaire, while Cao high of S$2.8 billion in Zheng, also from China, became FY2018/19, registering the owner of the new Jaguar luxury with Sesame Street activation, C compact performance SUV. an 8.1% year-on-year increase. visitors had the opportunity to Driven by strong passenger growth, get their hands on limited-edition breakthrough collaborations and To strengthen Changi’s position as collectibles such as Sesame Street- the pursuit for retail excellence, the go-to destination for families, themed notebooks, storage Changi Airport remains a world- the airport’s resident children- boxes, activity packs and even fun class retail destination. centred programme, Changi

CHANGI AIRPORT GROUP ‘passports’ where children collected Loves Kids, brought the lovable stamps for every completed activity. With over 500 shopping and dining Sesame Street gang to the airport Overall, Changi Airport attracted options spanning across 90,000 together with a range of fun-filled close to 3.5 million people to its square metres of commercial space, activities and events for the school public areas through the Sesame Changi Airport continues to push holidays. Families were treated Street promotion. The campaign the frontiers of retail to delight to a first-in-Asia Sesame Street was also recognised as the Best travellers and airport visitors. pop-up exhibition, a 30-metre-long F&B Marketing & Promotions inflatable playground and larger- Campaign of the Year at the FAB REWARDING RETAIL than-life Gachapon machines. (Food and Beverage) Awards 2019. EXPERIENCES To excite and bring shoppers In June, Changi Airport was home Not forgetting the adults, for the and diners even more unique to Singapore’s largest cardboard first time, Changi Airport visitors experiences, airport-wide events exhibition featuring scaled and football fans got the chance continue to be the mainstay at replicas of famous landmarks in to watch 33 World Cup matches Changi Airport. Besides attracting Central and Eastern Europe. The ‘live’ in air-conditioned comfort more people to Changi, these exhibition was the backdrop for at T3. Lined with soft carpet, cosy one-of-a-kind activities add to the the world premiere of the S is for inflatable seats and lounge chairs, airport’s outstanding array of retail Sharing Sesame Street live show. and a seven-metre by four-metre offerings. Almost 10,000 families enjoyed high-definition ultra-large LED the show and met with Sesame screen, fans immersed themselves Changi’s anchor shopping Street characters Elmo, Cookie in the football action, stadium- promotion, Be a Changi Monster, Bert and Ernie, Count style. Football fans packed the Millionaire, continues to create von Count and Abby Cadabby as event area, especially during excitement and buzz among the they made their appearance in matches between top footballing airport’s travellers and visitors. Changi. Organised as part of the nations. On the day of the The latest installment attracted well Discover the Fun Side of Changi World Cup Final, more than 600 initiative has also allowed brands to better engage with their fans, increase exposure and boost sales.

Changi Airport has also stepped up its offerings at the public areas. A well-loved destination within the airport that attracts more than half of the airport’s meeters and greeters, T3 B2 was refreshed with an update to its retail mix. The improvements included the introduction of a new event space and indoor garden. Created as the focal point of T3 B2, the community space ST3PS features a spacious stepped seating area and an ultra-high-definition screen for movies and live sports matches. To generate even more excitement, activity programmes such as ‘live’ 53 music performances, fitness classes and large-scale school holiday fans gathered to cheer for their Airport continues to capture the events were added to list of favourite teams. hearts of travellers and airport weekend activities. visitors with innovative concepts Changi Airport’s loyalty programme and a robust retail mix strategy. When it comes to dining options, Changi Rewards contributes families are also spoilt for choice significantly to the rewarding A key pillar for Changi Airport, with a bumper crop of 12 new retail experience at the airport. the Changi 1st programme has

brands featuring a wide range of ANNUAL REPORT 2018/19 To reward fans who shop and been delighting passengers with cuisines and genre joining Changi. dine at Changi Airport regularly, the latest product drops and These include aviation-themed a number of new benefits were the most exclusive experiences. food hall concept Terminal M by introduced in FY2018/19, including Working together with its retailers MOF, Japanese two-in-one concept the Changi Rewards Sure-Win and brands, Changi Airport Ramen Champion & Hokkaido game, free parking benefits, 1-for- presented a total of 13 Changi Paradise, Hong Kong café Tai 1 dining privileges and airport 1st outposts in FY2018/19. Prada Cheong Bakery and dual-concept lounge access specially curated debuted its Prada Voyage pop-up restaurant Le Shrimp Ramen and for different membership tiers. where travellers enjoyed photo Canton Paradise Noodle & Congee. With a brand new website and opportunities with a life-sized With the new outlets, T3 B2 now refreshed interface on the iChangi vintage plane, while Dior created features some 50 retail and F&B mobile application, members can a virtual swimming pool photo outlets offering a plethora of conveniently retrieve their Changi booth and incorporated various products and services to delight Rewards e-card and redeem a host digital elements for its Joy by Dior visitors and travellers. of attractive rewards. At the end of fragrance pop-up. Five world’s- the financial year, the membership first product launches also made DUTY-FREE SHOPPING AT YOUR base of Changi Rewards doubled their appearances at Changi FINGERTIPS from a year ago to cross the Airport – travellers were wowed As the world of e-commerce 1-million member milestone. by the Aberfeldy Exceptional Cask becomes more competitive, Vintage 1999 whisky, Lancome La iShopChangi continues to keep up REINVENTING RETAIL AT THE Vie Est Belle Flowers of Happiness to speed with changing consumer AIRPORT fragrance, Miu Miu Twist Eau de behaviour and shopping trends. In the digital age where instant Parfum, Shiseido Ultimune 2.0 To elevate the online shopping gratification is the norm and essence and SKII Genoptics Spot experience, iShopChangi launched experiences play a significant part Pen. Breaking the monotony a revamped website interface with of the retail experience, Changi in travel retail, Changi’s unique new features including a more visually-enticing web store design, passengers. For the Indonesian average of 100 passengers a day seamless integration with the market, Changi Airport continued interact with Pepper. Changi Rewards loyalty programme to deepen existing collaborations and a hassle-free checkout process. with BCA and embarked on a new OPTIMISING SPACE FOR With the new site optimised for partnership with Bank Mandiri, COMMERCIAL GROWTH mobile browsing and tailored to strengthening its outreach to During the past year, the individual customer profiles, duty- Indonesian travellers as a result. continuous journey to transform free shopping with Changi has and elevate the experience of also become more intuitive and Riding on the growing popularity Commercially Important Person personalised. of QR payment, Changi Airport (CIP) passengers on the ground teamed up with local mobile began with the completion of a With an eye on offering customers payment company Liquid Group to brand new dnata lounge in T3, more choices, the e-commerce introduce an integrated payment the Marhaba Lounge, and the portal has onboarded 35 new platform that accepts multiple completion of an expanded Qantas concessions and expanded its QR payment applications. With Business Class Lounge in T1. In the product range to over 20,000 this, tenants in Changi Airport pipeline are some new-to-Changi items from more than 800 brands. can process payments from both CIP lounges such as the Qantas Singapore residents who have local e-wallets and international First Class Lounge and the Qatar enjoyed the convenience of the payment applications on a single Airways Premium Lounge, which e-store’s delivery service now also first-of-its-kind platform. Besides are expected to be completed in have access to an extended range a wider range of digital payment the coming months. Changi’s hub of products with the inclusion options available, passengers can carrier, Singapore Airlines, also of more tenants providing the now enjoy a more seamless way of worked closely with CAG to kick- convenient service. These new going cashless. start the first phase of an exciting 54 enhancements have allowed multi-year revamp of its CIP lounge iShopChangi to improve site As Changi Airport hunts for offerings in T3. conversion, increase retention and new ways to enhance the retail boost customer satisfaction. experience for passengers, the In the departure check-in hall, airport has also leveraged new ground handler SATS also rolled INNOVATIVE PARTNERSHIPS technologies. CAG collaborated out a new check-in lounge for On top of increasing reach and with DFS Singapore, Temasek premier passengers in T3, and gaining mindshare through Polytechnic and SoftBank Telecom completed the revamp of its publicity and promotions in Singapore to introduce Pepper, an Premier Check-in Lounge in T2. key markets such as China and interactive robot programmed to CHANGI AIRPORT GROUP Indonesia, strategic partnerships recommend a list of different wines In CAC, following the successful have enabled Changi Airport to based on passengers’ responses to implementation of a vending grow its commercial revenue. In a short questionnaire. Stemming machines cluster at Cargo Agent the last financial year, Changi from on-ground surveys and Building (CAB) D, CAG introduced Airport collaborated with China observations, this innovation served a similar cluster at CAB C to mobile payment partners Alipay, a few purposes – enhancing the provide greater convenience and WeChat Pay and UnionPay shopping experience, injecting a more food options for the cargo to launch quarterly shopping novelty factor and driving sales. community. Named ‘Chillax’, promotions targeting Chinese Since the launch of the trial, an it provides a comfortable chill- out zone for the bonding and networking of the cargo community at the CAC.

Left: Two lucky shoppers beat 1.4 million other contestants in the annual flagship Be a Changi Millionaire retail promotion this year and emerge as the ultimate winners. Piecing together a retail heaven jigsaw Shopping and dining are integral elements of the Changi Experience. As the former Head of Planning and Leasing in the Airside Concessions Division, Mrs Chandra Mahtani was responsible for developing and leasing airside commercial spaces in all of Changi’s terminals, and has played a significant role in transforming these spaces in the past decade. Changi is now widely acknowledged as one of the benchmark airports in the competitive and dynamic travel retail industry.

Staying ahead of the curve is no easy feat. One of the strategies adopted was having a long- term vision for Changi’s retail business, including anchoring an iconic retail brand that could elevate Changi’s stable of luxury brands. This took the form of a decade-long courtship with Louis Vuitton. Chandra considers securing LV’s agreement to have its world’s first airport duplex store in Changi as one of her most memorable acheivements. She also played a pivotal role in cultivating partnerships with major travel retail players and brands from all over the world, cementing Changi’s position as a leading airport in the industry.

Chandra also feels very privileged to have been involved in the commercial planning aspects of all major developmental projects. From the upgrading of T1 and T2, to the retail planning of three new terminals (the Budget Terminal, T3 and T4), Chandra is well-poised to take on the next challenge in her career – the commercial planning of T5.“The depth and breadth of T5 is unlike anything I’ve done before, which presents an exhilarating challenge,”Chandra said with a smile.

Chandra Mahtani Vice President, Terminal 5 Commercial Planning Being Operationally Prepared RAISING SAFETY TO THE NEXT LEVEL

ehind the scenes of Changi Airport’s terminals, workers in the airside bustle to and 56 Bfro tirelessly, delivering in- flight meals, luggage and cargo to the planes like clockwork. They also ensure that each plane is cleaned, checked and refuelled before it takes off again from Changi. As passenger traffic at Changi continues to grow year-on-year, the airport implemented various

CHANGI AIRPORT GROUP initiatives to help staff improve productivity, so that operations can remain smooth and safe. stakeholders, worked closely to the exercise with all involved, as RECERTIFYING CHANGI AND ensure that the comprehensive well as address key areas vital to an SELETAR AERODROMES audit was completed successfully. airport’s emergency preparedness The Air Navigation Order requires and business continuity. Industry all civil aerodromes in Singapore to PREPARING FOR EMERGENCIES experts were invited to share case hold a valid aerodrome certificate. To enhance its emergency studies and lessons learnt from the To enable the continued operations preparedness and rescue emergency management of aircraft of Changi Airport and Seletar capabilities, CAG conducted two and terminal incidents, helping Airport, the five-year aerodrome aircraft emergency exercise drills to reinforce the Changi Airport certificates for both airports were in the year. Based on scenarios community’s response and resilience successfully renewed before their of aircraft on fire, one simulated against security threats. More than expiry on 30 June 2019. a sea crash, while the other a 150 participants from the airline land crash. Both exercises were community, mutual aid agencies As part of the re-certification attended by more than 350 and airport partners attended the process, the CAAS Aerodrome & operational personnel, including event. Air Navigation Service Regulation senior management from CAG, the Division conducted four phases of CAAS, the Ministry of Transport, To prepare for a wider range of comprehensive audits from July the Republic of Singapore Air Force threats, CAG also organised an 2018 to February 2019. The audits (RSAF) and airline partners. inaugural crisis preparedness ascertained that both Changi exercise focused on non-air crash and Seletar aerodromes complied Part of the drills included a crisis scenarios. The exercise was aimed with regulatory requirements in seminar, which was held on at enhancing the crisis preparedness all aspects. A total of 24 divisions, 6 March 2019. The seminar was of the airport community at Changi together with many internal to share key lessons learnt from Airport. As security incidents are Station 3 includes a larger office two airports attended the event. than the existing fire stations, as It featured exhibitions showcasing Above: CAG, state agencies well as new facilities which can safety innovation and improvement and airport partners interface with both CAAS air traffic projects by various airport coming together control and the RSAF tower to partners such as SATS, dnata, SIA for the inaugural crisis preparedness manage fires and emergencies. A Engineering Company (SIAEC) exercise on non-air new Casualty Clearance Station and ST Engineering Aerospace. To crash scenarios. 3 was also built to facilitate the date, close to 70 individuals and Left: casualty management operations more than 60 teams have been A participant for passenger loads of up to those recognised for their exemplary concentrates on manoeuvring in of A380 aircraft, the largest aircraft safety acts. 57 the new Forklift to operate at Changi Airport. Operations segment of the Safe Airside To promote safe driving in the Driving Competition. INSTILLING SAFETY AWARENESS airside, another key component of A safe airport environment is the airside safety, the third run of the foundation for positive travel Safe Airside Driving Competition experiences for passengers. was held in March 2019. In For maintaining its safety record, addition to tractor driving, the Changi Airport achieved a scope of the competition expanded

deficiency-free rating by the to include two new competition ANNUAL REPORT 2018/19 International Federation of Air Line segments – Joint Container Pallet Pilots’ Associations (IFALPA) for the Loader (JCPL) Docking and Forklift complex and have a significant 37th consecutive year since 1981. Operations. This helped to extend impact and consequence on airport CAG’s safety outreach and involve operations, the exercise provided Recognising that a safe working even more members of the airside a platform for state agencies and environment is also paramount community. airport partners to understand for the Changi airport community in depth the impact of a bomb who make up the lifeforce of the Designed to assess the participants blast to airport operations, and airport, CAG established the Airport on their knowledge and compliance consolidate and align responses Safety Awards (ASA) to recognise to rules, as well as manoeuvring on an airport-wide scale following commendable and outstanding skills, competition circuits were set that. Such annual exercises are safety acts and safety-related up to replicate their actual work part of CAG’s ongoing emergency projects by members of the airport environments. The well-received preparedness efforts, which also community. Since its introduction event saw more than 200 guests include training and engagement in 2016, the ASA has gone from attending, with representation from sessions to equip its airport partners strength to strength and is now all levels of staff from key airport with the competency to manage deemed by CAAS and key airport partners. Since the introduction such terminal-related incidents. partners as the highest platform to of this competition, safety acknowledge safety contributions performance has improved in the Besides soft skills, infrastructure by staff at both Changi and Seletar airside. is another important aspect airports. of emergency preparedness. To improve situational awareness In anticipation of the start of At the second annual ASA for airside drivers, the Runway operations at Runway 3, Fire ceremony held on 17 August 2018, Incursion Prevention Pre-warning Station 3 was commissioned on more than 300 airport staff from Location Equipment (RIPPLE), 1 November 2018. The new Fire various organisations based in the a pre-warning system, was Left: Workers concentrate on aligning the new train car to the tracks, to ensure successful delivery of the new batch of Skytrains.

introduced to alert drivers when Wi-fi enables airport partners such successfully delivered over three they are approaching the vicinity as SATS, dnata and SIAEC to use nights during off-peak hours. of a runway. Implemented in July their internet-connected devices Besides comprehensive testing 2017 and enhanced in August for real-time baggage tracking, and commissioning checks prior 2018, the system is installed in all status reporting, asset tracking to launching the new train cars airside vehicles used for runway and accessing electronic service into service, system enhancement maintenance. Using the Global manuals. In addition to improving works were also carried out. These Positioning System to draw a work efficiency and convenience, included an upgraded power geographic boundary, or geofence, it also enables future innovations supply system, new on-board 180 metres from the centre of at the airside aimed at improving surveillance and recording systems, 58 the runway, RIPPLE automatically productivity, which in turn as well as enlarged maintenance sends visual and audio alerts to the strengthens Changi as an air hub. depot facilities. Innovative, first-of- airside driver if his vehicle enters or its-kind fabric shutter doors were exits the geofence. WIDENING AIRPORT also installed along the Skytrain BOULEVARD tracks where the train cars enter IMPROVING AIRPORT SECURITY As part of continuous efforts to and exit the Jewel building, to PROCESSES plan ahead and provide ample minimise heat inflow every time To provide convenience to airport sub-system capacity, a fifth a Skytrain passes through the passengers, temporary storage vehicle lane was added to both complex. A pilot trial using smart

CHANGI AIRPORT GROUP of luggage during layovers is a the airport-bound and city-bound sensors to enable predictive commercial service available in lanes of Airport Boulevard. This maintenance of the Skytrain sub- Changi’s terminals. Previously, bags expansion is part of the airport system is also being rolled out. needed to be manually searched infrastructure master plan that will prior to storage, which affected enable Changi Airport to serve its ENHANCING AIRSIDE STAFF the passenger experience. Through planned 85 to 90 mppa with high WELFARE discussions with regulators, CAG levels of service. To provide a more comfortable obtained approval for the use working environment for airside of an explosive trace detector EXPANDING THE SKYTRAIN staff, RECHARGE, a common (ETD) to screen luggage in FLEET airside rest area was launched in temporary storage. Replacing In February 2019, Changi Airport’s T1 in May 2018. Staff now have a manual searches, the ETD not only Skytrain system saw its first train one-stop, rejuvenating environment improves passenger experience, car smoothly crossing the one- to get some rest, interact with it also serves to improve security. million kilometre travel milestone. colleagues, as well as access more Six new train cars were also food options without having to go INCREASING PRODUCTIVITY added to the existing fleet of to the public areas of the terminals. THROUGH APRON WI-FI 16 to provide more peak hour Through offering amenities and Productivity at Changi Airport’s carrying capacity. This will facilitate cool respite from the outdoor aprons was boosted when CAG smoother transfer of passengers environment, RECHARGE enhances implemented an airport-wide within and between T1, T2 and T3. the attractiveness of airside jobs. apron Wi-fi infrastructure for the airside community, covering the Executed through seamless contact stands, remote and cargo collaboration between the bays, as well as baggage sorting Engineering & Development areas of the four terminals. Part of and Airport Management the Smart Apron initiative, apron Clusters, the new train cars were Improving the lives of passengers CAG staff like Au Lye Quee, Senior Manager with the Engineering Management and Systems Planning Team, are responsible for ensuring the operational readiness of Changi Airport’s infrastructure at all times. This is integral to securing the airport’s long-term competitiveness in a dynamic aviation industry.

One key piece of infrastructure in Changi is its Passenger Loading Bridges (PLB). In 2001, Lye Quee headed the project to replace 31 PLBs in T1 which were reaching their end-of-life. Adding to the complexity of the task, he had redesign the PLB system to allow two narrow body aircraft to be parked and docked at a single wide body aircraft stand in a live operating airport environment. Through careful planning and execution, Lye Quee and his team successfully completed the project on time.

Fast forward to 2015, Lye Quee was asked to join the airport’s Skytrain team - to enhance the system’s signalling system and add six new trains to the system in a project that coincided with the construction of Jewel.

As a portion of the Skytrain’s track was located within Jewel, doors had to be installed at both ends of this track to keep air-conditioned air in. Lye Quee’s team modified the train signalling software to open the doors automatically as trains approach Jewel, and close as they leave.

When asked about his experience, Lye Quee enthuses, “It’s just like giving birth to a child – hard work but all worthwhile. You’re glad that you achieved something which can improve the lives of passengers.”

Au Lye Quee Senior Manager Engineering Management & Systems Planning Building for the Future INVESTING FOR GROWTH

EWEL CHANGI AIRPORT Changi Airport’s newest game-changing development, JJewel, welcomed its first visitors during a week-long ticketed public preview on 11 April 2019. 500,000 tickets were 60 made available, where visitors were greeted by views of the dazzling HSBC Rain Vortex, the world’s tallest indoor waterfall, and the spectacular Shiseido Forest Valley, a four-storey lush indoor forest.

The 135,700-square-metre complex at the heart of Changi CHANGI AIRPORT GROUP Airport is built on the site of the former T1 open air car park and houses over 280 retail and F&B outlets. Jewel offers various play attractions suitable for people of all ages, as well as airport and accommodation facilities – all within one of Singapore’s largest passenger traffic at Changi is Above: The 40-metre Rain and most majestic indoor gardens expected to increase in tandem. Vortex, inspired by with more than 2,000 trees. The development will provide the the frequent rains additional capacity needed to in Singapore, takes centrestage in Jewel. Together with the opening of enhance Singapore’s air hub status. Jewel, Changi’s T1 has also been Right: Changi East spans expanded to increase its capacity BUILDING AHEAD WITH T5 1,080 hectares and by three mppa. This brings Changi T5 is the key part of the entire will add to Changi Airport’s capacity Airport’s total passenger capacity to Changi East development and is over the long term. 85 mppa across all four terminals. estimated to add up to 50 mppa to Changi Airport’s overall capacity CHANGI EAST when it opens in the early 2030s. Changi Airport’s next major project – the massive Changi East On 13 April 2018, CAG announced development – is moving full the appointment of the Master steam ahead with key components Building Consultants (MBC), achieving major milestones. comprising three teams, As air travel in the Asia Pacific providing architectural design and region continues to grow, engineering consultancy services for the development. The firms design phase, which will take appointed are: another few years to complete. The MBC and MCC teams KPF (Singapore) Pte Ltd, in will continue to work with all partnership with Heatherwick stakeholders to clarify requirements Studio and Architects 61 Private and to refine T5’s design. Limited, for the provision of architectural design services; COMPLETION OF RUNWAY 3 Arup Singapore Private Limited, The development of a three- Mott MacDonald Singapore Pte runway system is necessary to Limited, and Surbana Jurong ensure that Changi Airport has Consultants Pte Ltd, for the sufficient runway capacity to meet provision of engineering services; the anticipated growth in aircraft and movements in the medium to long DP Architects Pte Ltd, for the term. provision of design services for commercial spaces. CAG has completed the strengthening of Runway 3 for CAG also announced the future civil aviation use and appointment of the Master Civil extended it from 2.75 kilometres to Consultants (MCC) for the T5- 4.0 kilometres. The strengthening 61 related landside and airfield works work involved paving the runway – Arup Singapore Private Limited, with four layers of materials, Mott MacDonald Singapore totalling 2.65m in depth, to allow it Pte Limited, Surbana Jurong to withstand the pressure of heavier Consultants Pte Ltd and Changi commercial aircraft landing on it at Airport Planners and Engineers high speed. Similarly, the extension Pte Ltd. of the runway, which has to date only been used by military aircraft,

T5’s concept design has been is necessary to enable larger civil ANNUAL REPORT 2018/19 completed, and the project aircraft to use it for landings and is now moving on to the schematic take-offs.

The construction of supporting infrastructure such as drainage and ancillary buildings, like Fire Station 3 and Airfield Lighting Control Centres, has also been completed.

Military flights have resumed on Runway 3 and more than 40 kilometres of supporting taxiways are currently in development to connect Runway 3 to Runway 2, and to the rest of Changi Airport.

OPERATIONALISATION OF THE CHANGI EAST CHECKPOINT As development works are expected to ramp up in the coming years, with more vehicles and workers entering the Changi East site daily, the Changi East Checkpoint began operations in September 2018. The checkpoint, Above: The Changi East Checkpoint, which has six checkpoint lanes, started operations in September 2018.

Below: To enhance safety on the site, smart which took about a year to glasses were used for the first time construct, serves as a centralised to provide better entry of all vehicles and personnel real-time footage into the Changi East site. Besides to the Changi East Command Centre. allowing for easier tracking of all who enter the site, it also allows for the implementation of a standardised security process, while optimising manpower resource allocation.

There are six checkpoint lanes, 62 designed to handle up to 500 Command Centre so that duty On the airside, three new aircraft vehicles and 8,000 personnel per managers can accurately see what parking stands positioned directly hour. Individuals entering the site is happening on ground. As specific in front of the building allow for will have to be pre-registered and parts of the airfield have height quick boarding and disembarkation obtain passes to enter the worksite. restrictions to ensure aircraft safety, of passengers, enabling faster the Automatic Height Infringement turnaround time for scheduled Managed by CAG, security and Detection System was also operations. For private jet maintenance management introduced, where sensors and GPS operators, the new Seletar Business personnel are on-site round-the- locators are placed on equipment Aviation Centre housed within

CHANGI AIRPORT GROUP clock to run the checkpoint. to detect when the equipment has the same facility provides business exceeded an area’s height limit. aviation passengers with dedicated UTILISING NEW TECHNOLOGY and exclusive passenger clearance TO ENHANCE SAFETY ON-SITE LAUNCH OF SELETAR AIRPORT’S and facilitation, in a relaxed lounge To enhance safety on the site of NEW TERMINAL setting. the Changi East development After two years of construction, which involves multiple large- Seletar Airport’s new passenger In the lead-up to the commencement scale construction works taking terminal was completed and started of operations, extensive trials place at the same time, several operations on 19 November 2018. involving over 2,000 participants innovative technologies have been Spanning 10,000 square metres, were conducted from June 2018. implemented over the year. the new two-storey terminal Through this process, systems and can handle 700,000 passenger procedures were tested and fine- Using the Online Work Declaration movements a year and is designed tuned to ensure readiness for live System, work team supervisors to accommodate both scheduled operations. register their work areas, which and non-scheduled flight services. are then displayed on an online, Since November 2018, all digital map of the Changi East Compared to the old terminal operations have commenced at site. Workers are also issued with which only had one check-in the new facility. a transponder, which will alert them counter, one security lane and an if they enter into restricted areas. immigration area, the new terminal On 21 April 2019, Seletar Airport features larger operational areas welcomed the inaugural flight Smart glasses are also used to for passenger facilitation, including by Firefly, FY3126, from Subang, provide real-time line of sight a departure and arrival hall, arrival Malaysia to Seletar. This marked footage by ground inspectors immigration and baggage claim a successful start for Seletar’s and streamed to the Changi East areas. scheduled flight operations. A Jewel in Singaporeans’ hearts Marque events and unique attractions such as the “Changi Airport Race” and the first three-storey slide in an airport help to increase footfall and support the commercial viability of the airport’s retail business. Passenger spend on shopping and dining also go towards offsetting aeronautical charges at Changi.

As the former Head of Airport Operations for T2 and T3, and later the Head of Landside Concessions, Jean played a major role in organising flagship events and spearheading the rejuvenation of landside retail experiences in T3. These experiences were helpful in giving Jean valuable insights for her subsequent role in Jewel.

What started out as expansion plans for T1’s car park evolved into the construction of an entire complex. Her team realised they should optimise the use of space and create something that will add to Changi’s global appeal.

After getting government agencies’ approval, Jean and the team set out to make Jewel a reality. After nine years and literally scouring of the world in search of experts and one-of-its kind attractions to put Jewel on the world map — the complex opened its doors in April 2019.

Jean believes Jewel will contribute positively to how passengers perceive Changi. “We hope Jewel will bring people to Singapore, connect lives, and make Singapore proud. Everyone on the team endeavoured to achieve that. We knew Changi Airport already holds a special place in Singaporeans’ hearts and we wanted to honour that.”

Hung Jean Chief Executive Officer, Jewel Changi Airport Development Pte Ltd Creating International Impact ENLIVENING AIRPORTS, CREATING POSSIBILITIES

64 hangi Airports International (CAI), a fully-owned subsidiary of CAG, continues to develop Cits investments and share its expertise with airports around the world. Its portfolio includes assets in Brazil, India, Japan, Russia, the Philippines and consultancy projects in Africa, Canada, China and Southeast Asia. CHANGI AIRPORT GROUP BRAZIL Tom Jobim International Airport in Rio de Janeiro, Brazil, continued to deliver resilient operational and financial performance in FY2018/19 amidst a challenging external environment. The As of FY2018/19, Tom Jobim International airport witnessed growth across all cornered 90% of the market for imported international sectors, particularly Europe, goods bound for the state of Rio de which grew 9.4% in the last year. The Janeiro, as compared to 67% in 2013, international gateway to the ‘Marvellous before privatisation. City’ welcomed 4.6 million international passengers. Domestic passenger traffic As the airport sought to enhance its at the airport declined 16% from vibrancy and improve the passenger the previous year due to the sudden experience, passengers enjoyed a wider bankruptcy of the country’s third largest selection of dining and retail options. domestic carrier, Avianca Brasil, and weak Some 23 new outlets, including TGI Fridays economic situation, particularly in the and WH Smith, were added in 2018. state of Rio de Janeiro. Tom Jobim International received Total revenue in FY2018/19 grew 7% honourable mention at the annual Airports year-on-year despite lower domestic Going Green Awards for the “Conexão traffic. Revenue from cargo operations Escola” project. The project was launched grew 59% year-on-year, driven by imports in 2015 with the aim of bringing the in several key sectors including oil and airport closer to the community located in gas, aircraft engines and components, the surroundings of the airport. The goal machinery and pharmaceutical products. of the project was to educate children on environmental issues and empower featuring unique storefronts that Above: them to propagate sustainable drew inspiration from the city’s Fukuoka Airport is CAI’s first investment practices wherever they live. distinctive heritage and created a in Japan. strong sense of place. To further Building upon successes in showcase the city’s rich culture, Left: Chongqing Jiangbei operational excellence, the airport well-known local food specialty International was named the sixth Best Airport in stores such as Wu Chao Shou 65 Airport’s newest terminal features South America by Skytrax in 2019. (featuring dumplings) and Chen unique storefronts Chang Yin (retailing fried bread) that draw inspiration from the city’s Despite the near-term challenges were introduced. Complementing distinctive heritage. due to Brazil’s subdued economic these were leading international recovery, Tom Jobim International brands such as Coach, Shanghai Below: New product is expected to benefit from the Tang and Tumi. categories and country’s long-term economic brands that appeal to travellers were outlook. The airport is the ninth busiest introduced in in the country and welcomed ANNUAL REPORT 2018/19 Chongqing Jiangbei CAI has a 51% shareholding in the 41 million passengers in 2018. International Airport. concessionaire, while government It clinched several Best Airport agency Infraero owns 49%. awards at ACI’s ASQ Awards 2018.

CHINA CAI holds a 49% stake in the In November 2018, CAI joined joint venture. Besides Chongqing, hands with Chongqing Airport CAI provided consultancy Group to set up Sino-Singapore services to other Chinese airports Chongqing Airport Commercial in commercial development, Management Co., Ltd. operational efficiency and professional training. These include The company focuses on enhancing airports in Changsha, Qingdao and Chongqing Jiangbei International Shenzhen. Airport’s non-aeronautical business by introducing innovative INDIA elements, experiential concepts Durgapur Aerotropolis is India’s and new product mix that appeal first privately managed airport city. to travellers and visitors. The company also manages advertising Flight operations have been sales in the terminals, the CIP growing at the airport city’s Kazi (Commercially Important Persons) Nazrul Islam Airport. Air India and car park facilities, and the currently operates a four-weekly ground transport centre. direct service between Delhi and Durgapur and three-weekly The joint effort resulted in the services between Hyderabad and newest terminal, Terminal 3A, Durgapur. In June, SpiceJet launched one daily flight connecting Durgapur to Mumbai and Delhi. With these connections, Kazi Nazrul Islam Airport in Durgapur airport city has direct air linkage to three of India’s largest metro cities.

The aerotropolis is developed by Bengal Aerotropolis Projects Limited (BAPL), in which CAI has a 30.2% stake. The other major shareholder is the state- owned West Bengal Industrial Development Corporation, with a 26% stake.

JAPAN In August 2018, CAI and its partners won the contract to operate, manage and develop Fukuoka Airport in Japan for a period of 30 years. Fukuoka Airport is CAI’s first investment in 66 Japan.

The consortium, through its operating company, Fukuoka International Airport Co. (FIAC), took over airport operations on 1 April 2019. Fukuoka Airport will outlets and retail options, as well strategically situated less than 100 be positioned as the gateway to as on-site entertainment. kilometres northwest of Manila, Western Japan and the airport of will be developed into a premier choice for traveller and airlines. It will also take steps to ensure gateway linking North and Central CHANGI AIRPORT GROUP that the airport provides Luzon to the rest of the world. Through work done in passengers with a better travelling collaboration with CAI’s partners, experience by introducing speedier The consortium, through the Fukuoka Airport won the Highly check-in and security clearance operating company, Luzon Commended Award in the more services. International Premiere Airport than 20 mppa category at the Development Corp. (LIPADC), Routes Asia Marketing Awards FIAC will continue to work with will engage airlines and tourism 2019. local businesses to stimulate authorities to increase air links economic development in the and further boost the double- Over the next 30 years, FIAC will immediate surroundings, and digit passenger traffic growth expand the airport’s network to across Kyushu and the rest of experienced by the airport welcome 35 million passengers Western Japan. over the last few years. It will with connections to 100 domestic also introduce more hassle- and international points. It will The other partners in the free processes and amenities introduce simplified landing fee consortium are Fukuoka Airport to transform the passenger structures and long-term discounts Holdings, Nishi-Nippon Railroad, experience. to attract airlines and secure flight Mitsubishi Corporation and routes. Kyushu Electric Power. The consortium will also manage the cargo, general aviation and FIAC will be introducing a THE PHILIPPINES logistic facilities of the airport. brand new entertainment and CAI and its partners won the commercial concept at the airport. 25-year concession to operate A new 110,000-square-metre Travellers will constantly be and maintain Clark International passenger terminal is under surprised with ways to have fun Airport in the Philippines in construction. Targeted to open through a wider selection of F&B December 2018. The airport, in 2021, it will almost double the and Uzbekistan. All three airports Traveller Russia and CIS Award saw steady growth in the domestic 2018. On the national level, Sochi market, propelled by enhanced and Anapa Airports maintained capacity to Moscow and other their Best Airport awards in regional destinations. their respective traffic categories at Russia’s National Aviation In June 2018, Sochi International Infrastructure Show 2019. Airport welcomed athletes and fans of FIFA World Cup 2018. CAI has a 30% stake in the joint Over a period of three weeks, venture, which owns the airports the airport processed more than and their management company, 5,000 flights, 660,000 passengers Basel Aero. and 5,500 tonnes of baggage. The airport successfully handled Vladivostok Left: a record 37,000 passengers a Vladivostok International Airport Plans are underway for a new passenger day, more than double the daily in Russia’s Far East continued terminal at Krasnodar average. on its trajectory of strong traffic International Airport. growth, increasing 22% year-on- In the year, the airports upped year to reach almost 2.8 million their game in commercial passengers in FY2018/19. offerings. At Sochi International, the landside commercial area CAI worked with the airport was renewed and duty paid store team to launch targeted incentive reconfigured to offer a better retail programmes and marketing and F&B experience. campaigns for airlines and tourism 67 authorities to draw traffic. The At Krasnodar International Airport, airport introduced new carriers and new global F&B brands were increased flight frequencies within introduced to the exterior area Russia and to destinations such as of the airport for an enhanced China, Japan and South Korea. airport’s capacity to eight million experience for passengers, well- passengers per annum. wishers and the greater airport The commercial area was community. transformed, with a reconfigured LIPAD took over operations in mezzanine that offered more retail August 2019. CAI holds a 15% Anapa Airport continued to and F&B options. Plans to revamp ANNUAL REPORT 2018/19 stake in the operating company. outperform sales and revenue the duty-free area and expand targets as a result of the best in the domestic business lounge for RUSSIA class commercial programme that greater passenger comfort are on included the introduction of a new track. Krasnodar product mix and services, in the CAI invested in a group of airports new terminal. The airport held a series of in Russia’s Krasnodar region in workshops and training sessions 2012. Since then, the airports Plans are also underway for a new to uplift service standards and – Anapa, Krasnodar and Sochi – passenger terminal at Krasnodar enhance the passenger experience. have witnessed a two and a half Airport, which will have more than times expansion in passenger double the capacity of the current In the year, the airport was traffic. terminal. named Best Economic Project for Regional Development, and won Over the year, CAI worked with its The airports once again won top second place for Best International partners to attract airlines, open accolades on international and Airport (up to 4 mppa) for the new city links, and increase flight national platforms. At the ACI ASQ second consecutive year at Russia’s frequencies. Passenger traffic Awards 2018, Sochi International National Aviation Infrastructure climbed 12% year-on-year to retained the Best Airport (5-15 Show 2019. 12.4 million passengers in mppa, Europe) title for the second FY2018/19. International travel consecutive year, after having won CAI holds a one-third stake in registered strong growth, the same award in the 2-5 mppa the joint venture that owns and particularly at Sochi and Krasnodar category previously. For the second manages the airport. airports, driven by markets such as time, Sochi was named Best Armenia, Georgia, Israel, Turkey Regional Airport at the Business Attracting The Best Talents

a strong people-oriented culture, PEOPLE EXPERIENCE AND know internally as “Terminal H” ENGAGEMENT (with H for Heartware). Being in a business that focusses EMPOWERING on passenger experience first, CAG At the Randstad Employer Brand constantly looks at the innovative Awards 2018, CAG reclaimed use of technology to enhance TALENTS TO the top spot after its last win in the travel experience. Similarly, 2016. According to the 2018 CAG recognises the importance survey, the top three employer of promoting innovation as part DEVELOP AND value proposition drivers for CAG of its organisational culture – to are – financially healthy, good empower employees to push reputation and adoption of latest boundaries and develop new ideas. SHINE technologies. A good 69% of survey respondents who are aware of CAG want to work for the organisation.

The HR Excellence Awards 2018 recognised the most exceptional Y2018/19 was a shiny year initiatives across strategic Human 68 on the employer branding Resource (HR) functions to promote front for CAG as it clinched and celebrate excellence in HR Fa hat-trick of awards – the practices and leadership. CAG took Most Attractive Employer by home the coveted gold awards for Randstad, and the Employer of Employer of the Year as well as the Year (Gold) and Excellence Excellence in Workplace Culture in Workplace Culture (Gold) at – recognising the organisation’s the HR Excellence Awards. These efforts in building a collaborative, awards are a testament to the open and innovative workplace

CHANGI AIRPORT GROUP organisation’s efforts on building culture.

Above: Keynote presentations, workshops and experiential activities enriched CAG staff during the Learning Festival 2018.

Left: CAG is named the Most Attractive Employer at the Randstad Employer Brand Awards 2018.

Right: Newly renovated office featuring a cosy and chic-looking pantry area. Through employee engagement Across the three events, there were made helped employees locate programmes and activities such as a total of 550 participants, a 22% information on the intranet more the Learning Festival (LearnFest), increase in attendees from the easily to enhance productivity at employees were given the unique previous LearnFest. work. opportunity to be equipped with new knowledge to innovate. ENHANCING INTERNAL WORKPLACE ENHANCEMENTS The theme of 2018’s LearnFest was COMMUNICATIONS Terminal ‘H’ remained at the core “Dream It, Test It”, with the aim Another aspect of CAG’s of CAG’s people strategy. To build to build a spirit of experimentation employee engagement efforts a collaborative and open culture among employees. The week-long was the continued growth and within the organisation and among event included power-packed use of In.Touch, CAG’s internal employees, CAG continued to presentations, workshops and social networking app, as well work on the ‘CAG HOME’ project – experiential activities. For example, as a revamp of CAG’s corporate a workplace transformation a customised Escape Room was intranet. Managed by CAG’s initiative. An office is no longer just built right within the CAG office to Internal Communications team, a place where employees go to encourage employees to think out the In.Touch app is used to work. It has become an important of the box and escape! Through crowdsource for ideas, keep staff strategy for organisations to the keynote sessions, they also informed of CAG’s news and attract and retain talent. Following had the privilege to hear from 19 announcements, as well as to the refreshed work spaces and speakers, both from CAG as well as showcase the work of the various environment in CAG’s offices in T2, renowned brands such as Ya Kun divisions and staff in CAG. the Airside Operations Division’s International, Google, DHL, SGAG, office also transformed from a ShopBack and more. The app also saw new traditional office space to one enhancements made to its features, that facilitates collaboration and To promote sharing in CAG, such as the addition of office maps innovation, while creating capacity 69 two learning initiatives were and questions commonly asked to support the company’s growth also organised by the Corporate by staff. These enhancements sustainably. Employees moved into and Information Technology provided staff with easier access to their new home in December 2018, (CIT) Division to promote digital company-related information, and where they were met with a larger, innovation. ‘AI Gets Real’ was a made the app even more useful more comfortable communal one-day seminar and workshop for them. Through these initiatives, pantry, more meeting rooms, that allowed employees to try an average of 71% of staff logged and even a rest pod that supports their hands at Open Source and in to the app at least once in the needs of shift workers in the Robotic Process Automation FY2018/19, a 4% increase over the airside office. Programming. The ‘Sensors, previous year. ANNUAL REPORT 2018/19 Uncensored’ workshop focussed On top of the physical on internal project sharing and live CAG’s corporate intranet also went transformation of the CAG demonstrations with the objective through a revamp to improve its workplace, CIT rolled out corporate to help employees generate new information architecture and user initiatives such as the Office 365 ideas in their areas of work. experience. The improvements Productivity Suite and Staff Wi-Fi to enhance staff productivity and mobility. With the new Office 365, the cloud-based solution made finding and retrieving information more convenient for employees. It also allowed employees to work anytime and anywhere on approved devices. For example, the OneDrive platform enabled file- sharing with internal and external stakeholders, and also acts as a personal backup data storage drive. The roll out of Wi-Fi for staff usage across the terminals allowed employees to use their mobile devices in the offices while in a safe and secure office network. Contributing to Communities

ince 2012, Changi Foundation also works directly Foundation, the with its two main beneficiaries, philanthropic arm of CAG, NorthLight School (NLS) and DOING THE Shas focussed its community Metta School, to co-develop efforts on programmes for meaningful programmes for disadvantaged youths. Guided students that also complement RIGHT THING by its vision of ‘Connecting with the schools’ curricula in growing youths today, Empowering them the students’ work-readiness. for a better tomorrow’, Changi With this, Changi Foundation AND DOING Foundation offers opportunities for has focussed its efforts on the youths to grow into positive young development of programmes that adults, leading independent and provide job exposure opportunities. THINGS RIGHT meaningful lives. Learning is further enriched with the support and involvement of Besides funding book prizes, CAG volunteers who mentor and education awards, and youth- befriend the students, and airport focussed programmes, Changi partners who provide hands-on experiences.

In July 2018, Changi Foundation revamped its long-running Youth Passport Programme to provide Year 2 NLS students with deeper insights of the different vocational programmes their school has to offer, to facilitate better career- related decisions when they reach Year 3. With the aid of airport partners like The Cocoa Trees and Swensen’s, more than 140 students got a taste of retail and F&B operations through specially planned hands-on programmes. They also learnt about potential career paths in sectors unique to Changi Airport, in companies like Certis Aviation Security and CAG’s Airport Emergency Service. SUSTAINABILITY CAG believes that every employee plays an important role in sustainable development, and the Left: sustainability ethos is integrated The annual five-day across all levels of the organisation. Job Attachment Programme offers To that end, CAG launched its Year 3 NorthLight inaugural Sustainability Report in School students January 2019, undertaking the an experience of working life. process of identifying, prioritising and validating the sustainability matters that are important to the company. Close to 120 NLS students also took seven Metta School students The Sustainability Report, which part in Changi Foundation’s five- with a two-week job trial. The day Job Attachment Programme job trial presented the students, is aligned with Global Reporting in October 2018. This is a 65% who were being trained for Initiative guidelines, outlines increase from the previous year, future employment, with learning CAG’s priorities across six strategic following NLS’s request that experiences in a real-world setting. thrusts, namely Fulfilling Careers, CAG expand the programme. With guidance from the respective Safeguarding Lives, Invigorating Students shadowed CAG staff restaurants’ staff, the students Travels, Enriching Communities, from the Engineering, Airport were able to further develop basic Thriving Economy and Flourishing Operations and People Team competencies needed for work in Planet. clusters, and airport partners from an F&B environment, like greeting the engineering, retail, hospitality, customers, setting tables, and area CAG has also identified five 71 and food and beverage sectors, cleaning. United Nations Sustainable helping to develop their skills for Development Goals (SDGs) as the workplace. Changi Foundation also worked its key priority and impact areas, with Metta School to bring the and an additional nine SDGs as Another enhancement to the Job school’s Social Competence high priority and impact areas. Attachment Programme in 2018 Learning Programme to the A Sustainability Working Group was the addition of a mentor- airport. The programme focusses has been established to drive the mentee meetup a week before on helping students develop the organisation in achieving these the start of the programme. This basic skills needed for them to goals. ANNUAL REPORT 2018/19 gave volunteer mentors from CAG lead lives of greater independence. the opportunity to connect with With the support of partners like On the environmental front, CAG their NLS mentees and to establish NTUC FairPrice and Kopitiam, has long-term targets which achievable goals with them. the 23 participating students got to are aligned with Singapore’s practise purchasing groceries and Climate Action commitments. In July 2018, Changi Foundation meals, under the guidance of CAG The organisation has committed worked with airport partners volunteers. to reduce its carbon emissions Nando’s and Swensen’s to provide intensity by 20% by FY2029/30, In recognition of its volunteerism based on FY2017/18 levels. programme, CAG was one of This is consistent with Singapore’s Opposite Page, From Left: four organisations in Singapore commitments to reduce emissions A Swensen’s supervisor conferred the Volunteer Partner intensity by 2030. works with a Metta Award by Community Chest in School student on the basics of F&B services October 2018. CAG was also Since 2015, CAG has implemented during the job trial conferred the Champion of Good a network of 11 food waste organised by Changi Foundation. status by the National Volunteer & digestors across all four passenger Philanthropy Centre in November terminals. To date, this has Changi Foundation’s partner Certis 2018, for a second year running. enabled over 300 tonnes of food Aviation Security The Champion of Good status waste to be broken down into gives NorthLight recognises organisations that have wastewater, and thus diverted School students an introduction to been exemplary in their corporate from incineration. In alignment security operations giving efforts, and have been with Singapore’s Zero Waste in Changi under the Youth Passport influencers and multipliers by efforts, CAG aims to increase its Programme. engaging partners and stakeholders waste recycling rate to 8.5% by on a collaborative giving journey. FY2019/20. Engaging Fans Worldwide KEEPING OUR FINGER ON THE PULSE

72 s millions of travellers continue to depend on Changi as their airport of choice, social media is an A one-minute video showcasing the integral channel for the airport to maintain a direct relationship with Changi Experience. The video was them. viewed more than 15 million times (3 million within the first 24 hours). Changi Airport has continued to build bonds with its fans and Changi’s social media campaigns CHANGI AIRPORT GROUP followers online. Its engaging and engagement activities also efforts on social media platforms clinched for the airport four such as Facebook, Instagram, awards. LinkedIn, Twitter, WeChat, Weibo and YouTube have contributed to the growth in affinity for the SOCIAL MEDIA CHANNELS airport, inspiring travel among STATISTICS travellers from around the globe. Facebook Changi Airport’s Facebook page added another million likes, hitting 3,795,225 more than three million fans, while FOLLOWERS +51% Changi’s Instagram channel crossed the 200,000-follower milestone. The two channels have been rated Twitter the most engaging pages for an airport around the world. 97,045 FOLLOWERS +32% CAG maintains a pulse on what Right: is trending on social media, and Launched on snagged a hit, riding on Nas Daily’s Valentine’s Day, Instagram ‘The Changi Trolley’ first arrival into Singapore. With no short film tells of sponsorship involved, CAG scored how two trolleys, Bob and Tracy, find the opportunity to host the global 244,933 love in the airport. influencer on a comprehensive FOLLOWERS +58% airport tour that resulted in his viral INDUSTRY AWARDS To round it off, a fly-through drone video was also produced to launch Jewel’s Best Digital and Social public opening. The video garnered close Media Offer to 700,000 views and reached 1.6 million people around the world. Left: DFNI-Frontier Asia Pacific Mini video series Awards 2019 ‘Love at First Flight’ VISUAL STORYTELLING centres around the Through its beautifully curated mix of romance of two Best KOL-led Campaign young aspiring airport, aircraft and destination imagery, Moodies 2019 individuals who work CAG produced a slew of video content at Changi Airport, (#BelanjaDiChangi) where millions of over the year that delivered a visual hellos and goodbyes narrative of the Changi Experience to are exchanged Best Client-Initiated every day. strengthen engagement and connection Idea (Silver) with its followers. Below: Hall of Fame 2018 Keeping a pulse on (Nas Daily at Changi Airport) online buzz, the social During the year, a three-part video series media team scores an aptly titled “Love at First Flight” was opportunity to host Nas Daily at Changi Best Real-time Response launched. This was the story about two and converts him into Campaign (Silver) Changi Youth Ambassadors who fell an instant fan. Hall of Fame 2018 in love with each other while working (Nas Daily at Changi Airport) together at the airport. The videos resonated well with the fans of Changi Airport, and became one of the top 40 LAUNCHING JEWEL TO THE WORLD videos trending on YouTube in Singapore. CAG could not miss showcasing the most 73 anticipated event of the year - the launch of Another heartwarming short film was Jewel Changi Airport. The team developed launched on Valentine’s Day, focussing unique and exclusive social content to on the most underrated service offered to introduce the wondrous experience passengers – the airport trolleys. Making of Jewel, its retail and dining outlets, the inanimate come to life, a love story airport facilities and play attractions. CAG was crafted around Changi’s landside and generated buzz by creating teasers around airside trolleys, showing their adventure the key development milestones of the within the airport as they pursued their integrated complex, and drove fans to dreams. The video and actual trolleys ANNUAL REPORT 2018/19 sign up for the public preview so as to be used in the production are now exhibited among the first to catch a sneak peek of at the Changi Experience Studio in Jewel. the airport’s newest glittering gem. SWIFT AUTOMATED SOCIAL CAG also encouraged visitors and fans CUSTOMER CARE to share their experiences at Jewel using Air travel can be daunting. More the hashtag #JewelThroughMyEyes. This travellers and visitors on social media initiative led to more than 11,000 user- now require swifter responses to their generated content shared across multiple feedback. CAG leveraged on artificial social media platforms. intelligence and automation to develop its first virtual assistant, MAX.

Powered by IBM Watson, MAX offers round-the-clock, on-demand assistance to general enquiries and helps passengers navigate their way around three most commonly requested functions, namely flight information and alerts, things to do around Changi, and reporting of lost items. For more complex feedback, passengers may be directed to speak to a Live Agent.

MAX is available on Facebook Messenger, Changi Airport’s website, as well as the iChangi app. Humour to humanise the Changi brand CAG’s social media journey started in 2009, a time when few brands were using it as a means of outreach.

Melvin Leong, one of the pioneering architects behind Changi’s push into social media, says social media transformed how Changi built public awareness as it evolved into a key outreach channel. “We used to rely a lot on traditional media releases to spread the word about Changi. With social media, we can humanise the brand and engage with our audience directly.”

Reflecting on the campaigns he led, Melvin shares that 2016’s Pokémon-themed festive campaign was the most memorable. “Following the success of the Star Wars-themed event in the previous year, we convinced the Pokémon Company to give us more flexibility in using social media to publicise the event and get people talking.”

The team filmed a clip of an airport staff delivering an oversized 1.2-metre-tall Snorlax plush toy to a contest winner using public transport. “I thought why not do something fun but in an absurd manner? With a huge dose of humour, you can get people to pay attention.” The video was watched 2.6 million times.

While it seems like a fun creative endeavour, running Changi’s social media platforms comes with great responsibility too. Melvin says knowing how and when to respond to customer comments is vital. “There’s no guidebook on how to do it. You must have a good grasp of what’s happening and be able to empathise with the situation. At the end of the day, it’s important that what we do elevates the Changi brand to a higher level.”

Melvin Leong Senior Manager, Corporate & Marketing Communications