Running head: CHANGI AIRPORT’S PUBLICS: WHAT DO THEY EXPECT?

Changi Airport’s Key Stakeholders: What Do They Expect?

Miguel Andrew F. Santos

Embry-Riddle Aeronautical University

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Abstract

Changi airport, one of the world’s best air transport hubs, is known for the services that the

airport provides and the customer-friendly culture they promote. This is shown as Changi has

been placed at the top among all international airports for six consecutive years. Implementing

innovative and simple attractions that keep passengers entertained and businesses investing. To

maintain high standards, Changi Airport Group (CAG) and the combination of Singapore’s

economy growth keeps a close and transparent relationship with their key stakeholders. These

key stakeholders are, the government/owners, passengers, airlines, lease agreement partners,

employees, and community. From each stakeholder, there are distinct and unique expectations

for Changi airport, ranging from business purposes, consumer purposes, and environmental

purposes. In this short paper, each stakeholder expectation will be discussed. From limits that are

presented in some of the expectations and how CAG is planning to handle each challenging

demand from the diverse stakeholders.

Keywords: Changi airport, customer-friendly, CAG, key stakeholders, stakeholder

expectation, limits
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Changi Airport’s Key Stakeholders: What Do They Expect?

Introduction

Changi Airport is one of Singapore’s greatest landmarks. This airport is one of the largest

and unique transportation hubs in Asia. Offering new goods and services worldwide, with their

ever-evolving infrastructure. Dubbed as the world’s best airport in six consecutive years by

international air travelers (Changi, 2018), the Changi Airport Group (CAG) intends to keep high

standards in the next decade. One way of keeping high standards is taking notice and

communicating transparently with their stakeholders.

Changi Airport

Stakeholders are defined as a person, organization, or group that is interested and

concerned in another organization, which in this case is Changi airport. Objectives, actions, and

policies set by Changi airport do affect stakeholders but at the same time, stakeholders can be a

factor in affecting the decisions of the airport. Changi’s Board of Directors makes sure that with

the steady growth, the interest of the stakeholders is protected and well satisfied (CAG, n.d.).

The key stakeholders of the airport, that play a vital role in the airport functioning are

Government/Owners, Employees, Airlines, Passengers, Lease Agreement Partners, and

Community.

Government/Owners

The government stakeholder of CAG is the Ministry of Transport (MOT) and Civil

Aviation Authority of Singapore (CAAS), whereby both hold much influence in the decisions of

the organization and expect a lot from Changi airport (Government of Singapore, 2018). To be

specific, a few expectations of MOT and CAAS are mostly positive such as the handling of

increased airport capacity, the economic wealth of Singapore, and the employment rate.
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In terms of airport capacity, which measures the aircraft operations per hour (Young &

Wells, 2011), the Singapore government expects that Changi can cope with the exceeding

capacity as there might be a rise in air traffic congestion, resulting into a depreciation of service

standards. However, with the development and completion of Changi infrastructure, travelers

will be able to enjoy efficient and safe traveling (Government of Singapore, 2018). For economic

wealth in Singapore, the government expects Changi Airport, with vast airport capacity, to

continue to grow themselves and to grow the economy as well. Since, Changi and the air

transport sector of Singapore previously added $35 billion to the nation’s Gross Domestic

Product (GDP) (IATA, 2017). Being the main source of Singapore’s wealth.

Lastly, as the employment rate is directly related to economic growth, and there may be a

surge in airport traffic, the government expects that Changi will offer jobs for citizens. Now,

with the new infrastructure of Changi more incoming tourism, and global partnerships

(Government of Singapore, 2018), creates opportunities for people who seek work. This is

because numbers show that 350,000 jobs opened due to the air transport sector (IATA, 2017).

Airlines

For Changi, airlines are also a key stakeholder. These airlines provide air transportation

for traveling passengers around the globe. Carrying both cargo and passengers from and to.

Airlines and any other business have the same objectives, which is maximizing profit. Therefore,

expectations of airlines for Changi are the volume of passenger demand while simultaneously

minimizing the cost of air carrier operations and operating in a safe environment.

Airlines expect that airports like Changi, provide high yield markets, reduction of

incurrence for costs due to delay on the ground, and maximization through nonaeronautical

revenues (Schaar & Sherry, 2010). Changi has shown that in their annual report, as the total
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nonaeronautical revenue mounted up to S$2.4 billion and the passenger traffic exceeding 62

million (CAG, 2017) but airports are not always perfect because, at times such as holidays, costs

for airlines can increase. Moving on, Changi airport facilitates the transfer of passengers (Young

& Wells, 2011). So airlines expect attractive airports, which means being an efficient node for air

transportation and offering minimal direct fees charged towards the airport (Schaar & Sherry,

2010). Ensuring that the moment an air carrier arrives and departs from Changi, the airline is in

safe hands and the cost of parking in Changi is cost-efficient.

Passengers

Establishing many airlines in Changi airport, passengers have become their lifeline,

gaining over 62.2 million passengers in 2017. To meet the passenger’s expectations, CAG has

realigned their airport processes (CAG, n.d.). But the expectations will keep growing, because

Changi’s expansion plan of the “Jewel Project”, expects an additional three million passengers

(Ramchandani, 2018). Thus, increasing the difficulty of satisfying passengers. Such key

expectations are fast processes/on time performances and the variety of goods and services.

Changi focuses on the expectations of smooth and flexible journeys through the airport.

Helping passengers enjoy a stress-free flight without worrying about long lines and airport

processes (CAG, n.d.). Utilizing automated check-ins, baggage counters, airport transportation,

and immigration, the expectation of fast processes for passengers are fulfilled as travel is

seamless. In addition, passengers do expect that, with the connections that the airport has, Changi

would offer many cross-cultured products and services originating from different parts of the

world. Giving passengers a taste of national or international foods and attractions. Such as indoor

gardens and their very own heritage zone.

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Employees

Serving these passengers are the employees. They are key stakeholders because these

people help CAG bring an innovative and comfortable environment to meet the previously

mentioned passenger expectations. Without the right motivation for employees, Changi would be

able to sustain the service standards that were kept in the previous six years. Moreover, decisions

made by CAG directly affect employees, that is why expectations of employees are job security

and pay.

Job security is very important to employees, and expect that Changi provides long-term

and stable jobs. This is because employees are affected by business decisions, and if Changi

airport adopts risky choices, jobs will be at stake. Thus, employees will take interest in the

decisions made and evaluate if those decisions are hurting the company’s status (Lewis, 2016).

Pay is also a major expectation for employees towards Changi, as the economic health of the

company is the utmost importance for employees. Employees are concerned with how often they

are paid, the amount they are paid, and the added bonuses (Lewis, 2016). Management of these

decisions is vital to employees, determining loyalty to CAG.

Lease Agreement Partners

Expanding from employees of CAG and what they expect, concessionaries (e.g. food and

beverage stalls, hotels, retail services etc.) and their respective workers demand things as well

from Changi airport. Their main objectives are to maximize profits. Considering these goals of

lease agreement partners, they expect that Changi offers vast passenger volumes and low fees

paid to the airport (Schaar & Sherry, 2010).

The reason why concessionaries expect a high volume of passengers is because knowing

that Changi has an airport capacity of 62 million passengers, sales of the stalls will increase and
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in turn result into massive profits. Especially when the Jewel project is completed, where the

project’s sole purpose is to act as a lifestyle destination (Jewel Changi, n.d.). But there are limits

to profits as Singapore is known for expensive costs, especially in Changi. Hence, expecting low

fees paid to the airport organization, such as rental or supplies, will be difficult to achieve.

Community

Finally, elaborating on stakeholders that are, in a sense, physically tied with Changi

airport. The community outside of Changi is also determined as a key stakeholder. Comprising

of the residents and local government close to the airport (Schaar & Sherry, 2010). Expectations

of the community include the deterrence of adverse effects (e.g. noise pollution, greenhouse gas

emissions etc.) and increasing the frequency of destinations served.

Expounding on the adverse effects, the community expects that Changi enhances the

sustainable development. Creating an environmentally-friendly hub by being committed to

keeping the surroundings clean and green. In specific, Changi has set forth strategies to be

energy efficient, and manage waste, water, and noise well. For example, Changi puts in effect, a

Land Use Plan which restricts areas of residential use for noise management and caters to those

who fear the noise created by the increased frequency of flights (CAG, n.d.).

Conclusion

In conclusion, with the diverse stakeholders that Changi possesses, the expectations

provided by the government, passengers, airlines etc. puts immense pressure on CAG to cope

with. Setting high standards in the next few years will be challenging with the compromises that

CAG has to make when attempting to fulfill each expectation. Due to the current state of the

economy and the expectations that conflict with each other.

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References

CAG. (n.d.). FAST Check In. Retrieved from http://www.changiairport.com/en/passenger-

guide/departing/fast.html

CAG. (n.d.). Our Leadership. Retrieved from http://www.changiairport.com/corporate/about-

us/our-leadership.html

CAG. (n.d.). Sustainability. Retrieved from

http://www.changiairport.com/corporate/csr/sustainability.html#landuseplanning

CAG. (2017). Destination - Singapore Changi Airport Annual Report 2016/17 Edition. Retrieved

from http://www.changiairport.com/content/dam/cacorp/publications/Annual

Reports/2017/CAG AR2016-17 - Full Version FA.pdf

Government of Singapore. (2018). Three reasons why we need to expand our airport

infrastructure. Retrieved from https://www.gov.sg/factually/content/three-reasons-why-

we-need-to-expand-our-airport-infrastructure

IATA. (2017). THE IMPORTANCE OF AIR TRANSPORT TO SINGAPORE. Retrieved from

https://www.iata.org/policy/Documents/benefits-of-aviation-singapore-2017.pdf

Jewel Changi. (n.d.). JEWEL Changi Airport. Retrieved from

http://www.jewelchangiairport.com/

Lewis, J. (2016, October 26). How Are Employees Affected as Stakeholders? Retrieved from

https://smallbusiness.chron.com/employees-affected-stakeholders-38732.html

Ramchandani, N. (2018). New record for Changi Airport with over 62m passengers in 2017.

Retrieved from https://www.businesstimes.com.sg/transport/new-record-for-changi-

airport-with-over-62m-passengers-in-2017
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Schaar, D., & Sherry, L. (2010). Analysis of airport stakeholders. 2010 Integrated

Communications, Navigation, and Surveillance Conference Proceedings.

doi:10.1109/icnsurv.2010.5503233