Changi Airport Business Operations And Activities

Changi Airport Overview

How Changi Airport Is Flourishing And Exploring The Business Operations In The International Market?

The main aim of this paper is to outline and explain the business operations and activities of Changi airport. Changi is one of best airports in Singapore which is founded in 1981. The paper explains that how the company is gaining competitive advantages by initiating the supply chain management within the organization. In today’s modern world, the organization is using innovative techniques to reduce the time and cost of the firm. Apart from this, here is the discussion about the freight operations of the Changi airport. The forecasting, sustainability practices, and value chain analysis of Changi airport have also been explained in the task. It discusses how the company is making a brand image in the minds of the passengers. Further detail of the task has been detailed below.

Changi is a planning area situated in the Eastern region of Singapore. In today’s era, it is an aviation hub for the passengers. It is the current location of both the Changi Airbase and Changi Airport. It has been noted that Singapore Changi Airport is the major civilian airport for Singapore and it is one of the significant and biggest transportation hubs in Southeast Asia. It is operated and managed by Changi Airport Group. It is stated that the airport is situated in Changi, at the eastern end of Singapore which is approximately 17.2 kilometers northeast from Marian Bay. Changi airport serves approximately 100 airlines flying to 400 cities in more than 100 countries globally. After the various researchers, it has been revealed that the airport handled approx 62,219,573 passengers (Changiairport, 2018).

In today’s modern world, Changi airport has become a sixth business airport for international traffic who is handling approx 7,000 flights weekly. It is noted that Changi airport is continuously holding a special and attractive place in the hearts of the people who have come through the welcoming doors. At Changi airport, the employees indulge and treat with passengers many ways effectively than one (Halpern & Graham, 2018). The mission of the Changi is to be a leader in Airport Company with maintaining a favorable and unique working environment. The airport performed effectively with passenger’s movements hitting a record of approx 59.4 million, representing a growth of 4.6%. Changi airport also enjoyed a 5.0% growth in indulgence sales, attaining a high of S$2.4 billion. At this time, the company has been able to take development projects within the organization. The company has four passengers’ terminals that have been arranged by the company in ‘U-shape. The terminal 1 is located at the northern side and terminal 2 is situated in the eastern side. The terminal 3 is situated on the western side and terminal 4 is located in the southern side (Changiairport, 2018).

Mission and Vision

Changi airport was opened in 1^st July 1981. In July 1975, the government took the decision to develop and build a change as the new airport in order to replace Paya Lebor. The government had two options that time: expand and flourish the presented airport at Paya Lebor or develop a new airport in other location. After the various studies, a comprehensive decision was made in 1972 to keep the airport at Paya Lebor, as suggested by a British aviation consultant. A site was selected at the far eastern side of the Island, apart from the coastline, so that planes will be able to fly over the adjacent sea than a single city. The construction was completed in 1981 and Singapore Changi Airport was officially established. That time approx eight million passengers used that airport. In 2006, the budget terminal was opened to lodge the maximizing the number of no-frills airlines. It has been noted that Changi airport also provides banking facilities to the customers across the world (Changiairport, 2018). The organization has developed a policy for resolving the issues and challenges of the marketplace. The main vision of the company is to build and develop a Corporation where people can achieve exceptional outcomes and results. The team members are working together to bring and create good ideas to life and attain greater results beyond the individual capabilities. Through the subsidiaries, the company is able to invest in foreign airports to spread and flourish the success of Changi airport in the international market. It has been studied that Changi airport was corporatized and came into existence as a new company, Changi airport group. The Changi airport was located at the eastern edge of the Island. The company is managed and operated Changi airport in Singapore. It engages in airport management and operations in the international market. It is stated that Changi airport is an icon of success and growth of Singapore. The company is established just to provide innovative services to the passengers across the world. Changi Airport also is a reachable social space for family outings and it is the part of the Singaporeans social memories. It is revealed that Changi had plenty of space for expansion and development of the airport. The company served around 100 airlines flying to approx 270 cities in more than 60 countries globally in 2014. Currently, Singapore Changi airport rated the best airport by Skytax in the world (Changiairport, 2018).

Value Chain Analysis

Singapore Changi airport provides various facilities to the passengers in the global market. The company offers immigration and customs facilities for passengers during the traveling. Various operations and activities related to the airport are maintained by Changi Singapore airport.

The value chain analysis is an effective and dynamic strategy that used by the Changi Airport to carry the business activities and operations successfully. This analysis is used to analyze and identify the internal activities of the firm. The main aim of the value chain analysis is to recognize and identify the most valuable activities for the firm. Furthermore, it helps in gaining competitive advantages in the marketplace. Changi airport airfreight operations are situated at Changi airfreight center (CAC). It has been noted that there are 9 airfreight terminals with two dedicated and potential courier center. With maintaining 125,000 sqm capabilities of warehouse space, the company has been able to hold the biggest freighters. CAC also renders effective and hassle-free clearance and transfer of goods. It is managed and controlled by airport pass system to attain access into the CAC.

There are 9 air freight terminals in Changi Airport. They have 3 million tones of cargo per annum mixed managing capabilities, that 2 ground agents such as SATS and CIAS managing and operating it. These air freight terminals are acquired by focusing on the material to ensure the efficiency and effectiveness of the operations and performance.  CIAS and SATS have professional and skilled employees who maintain enough capacity to manage the various types of cargo including dangerous animals and goods. In addition, it has been analyzed that there are 2 express & courier centers in the Changi airport who managing the capacity of approx 40,000 tonnes annually for supplying the needs and requirements of the shipments (Chao, Lin & Chen, 2013).

Milestones	Starting date	Ending date	Description
Formulating the strategic planning	1st April	30th May	The company will use metrics system to accomplish the long-term goals and objectives of Changi airport. The transformation strategies will also be initiated by the company in the workplace.
Arrangement of finance	1st April	30th May	To attain long-term goals and objectives, the company will have to arrange finance from various sources such as equity and debt. It purchases machinery and plant to accomplish the desired goals. High purchase lease will be used by the Changi airport for freight operation.
Hire skilled experts for airfreight operations	1st April	30th May	HRM team hires and selects skilled and potential experts for managing the freight operations within the organization. They have knowledge in various areas such as operations and technical areas.
Implementing the formulated strategic planning for air freight operations transformation	1st April	30th May	Formulated strategic plan such as the use of metrics project planning, swapping of expert employees in setting up airfreight operation will be done for the transformation through Changi airport.

Changi airport has done various enhancements to provide satisfaction to the consumers in the marketplace. There are approx 4.7 million passengers traveling between China and Singapore in the year 2017. China is one of the biggest countries for Changi airport. The firm is working hard to improve and enhance the freight operations (Chung, Ahn, Jeon & Van Thai, 2015). CAG is collaborating and cooperating with various airports and airline to grow and survive new city links in the company years, to further enhance and improve connectivity to the country. New terminal 4 was announced by the company to improve and enhance the freight operations. In 2016, the company had collaborated with its partners to prepare and make terminal 4 for flight operations. Furthermore, volunteers from the airport members and community of the public were encouraged to role-play as consumers to test and analyze the critical airport processes and systems. These included the self-service options at check-in, security screening, fast and seamless travel, bag drop, flight information, ground transport and transfer processes. In this way, Changi airport increases the number of passengers in the global market. Feedback and reviews are being collected by the employees to enhance the freight operations. It has been stated the various costs elements involved in the air freight are fees, surcharges, fuel cost, security charges and movement rates. The few charges included in the most shipments are uncontrollable. Furthermore, document digitization and latest technology are used by the company to improve and enhance the performance of the workers. Integrating technology and process help to attain competitive advantages in the marketplace. Along with this, a myriad of customized service is available for the Chinese passengers at Changi airport in order to improve and enhance the freight operations. An administration officer is appointed by the Changi airport to check and supervise the freight operations. Training and development coaching is provided to the employees in order to manage the freight operation in Changi airport. Agility of the freight operation and loading factors are analyzed and identified by the skilled team to run the business activities successfully (Sheffi, 2012).

Freight Operations

Changi airport has been created and designed to focus on the development of the air hub and aviation industry in Singapore for providing air navigation services to the customers. The supply chain management and freight operation are used by the company in the workplace. The supply chain management in the Changi airport business includes reciprocal relationship among the employees in the chain, demand forecasting, controlling inventory. The freight operations and SCM decisions have a direct impact on the airport’s financial performance and operations. In this way, it influences all the members in a chain. The company has developed a freight strategy for Asia with key goals and objectives to maximize the number of direct bookings. It also helps in procurement and booking of freight as per the needs and requirements of the consumers. It has been noted that air freight operations at the airport include the preparation of Changi shipments, loading, and unloading of the aircraft (Reynolds-Feighan, 2013). It also includes the freight operations between land transport and storage facilities. The outside freight operations include the preparation and consolidation of cargo, developing and building up of the air cargo and containers (Tsui, Balli, Gilbey & Gow, 2014). Furthermore, it also includes documentation and inspection. For inbound freight operation, the preparation includes regulatory procedures and customs and consolidation as well. For transshipment cargo, the operations and processes are limited to reconsolidating, unloading and reloading the cargo. Freight air operations are used by the company for short time period thus, it provides enormous storage facilities. Bonded facilities are necessary for imports and international transshipment cargo. All these air freight operations are undertaken in the Changi airport (Sheffi, 2013).

On the other hand, the main aim of supply chain management is to get right and appropriate material to the right place at the right time. Along with this, custom supply chain management programs are used by the company to gain competitive advantages in the marketplace (Pak, 2017). The Changi airport is focused towards eliminating and reducing the maintenance costs, deliver a high level of service and keeping a high and unique level of inventory accuracy. Thus, supply chain automation is a great and unique tool to attain the goals and objectives. The dynamic supply chain management system ensures not only optimized stock, goods, and inventory but also improves turnover and results in a better way (Alexander & Merkert, 2018).

There is a close relationship between sustainability and air travel in the workplace. With the help of sustainability, the company has been able to carry the business activities and operations at the international level (Castro & Lohmann, 2014).

Enhancing Customer Satisfaction

It has been noted that the company has complied all applicable legal and other requirements which relate to its environmental aspects. The firm is trying to find the cost-effective ways to reduce energy consumption and environmental damage by developing and improving sustainable energy consumption practices for the future. Singapore Changi airport is a key contributor to Singapore economy. The Changi airport group plays an empirical role in maintaining and developing a position as a global hub in Singapore. To meet the demands and expectations of the passengers and public, Changi airport group also recognizes and identifies its responsibility in ensuring the sustainable development (Jarach, 2017). It has been noted that Changi airport commits to carry out its business activities in a hassle free manner and minimize the pollution to the local community and to maintain a favorable environment. The company is committed to improving its environmental performance by setting long-term targets and implementing an action plan to reduce and address important environmental aspects. It also compiles all the legal and other requirements to protect the environment. The airport uses electricity for lighting in the buildings and outside areas as well as for ventilation and cooling of internal spaces. Along with this, fuel is used in airport vehicles and some other aircraft support equipment. It has been noted that most of the energy sources produce carbon emissions and they can contribute in airport operator greenhouse gas inventory (K?lk?? & K?lk??, 2016). Water usage also contributes to climate change through the energy use which is essential to process and drinking water.  On the other hand, aircraft noise management is a significant challenge for Changi airport globally. Noise occurs as a result of airline activities and site development activities. Changi focuses on the noise management to maintain silence in the environment. It also helps to protect the environment of the country. It has been stated that best practices are initiated by Changi airport to maintain sustainability in the organization as well as the environment (Changiairport, 2018).

Changi airport provides 24×7, 365 days services to the passengers in the international market. The passengers feel happy while traveling through Changi airport. The company is trying to create a favorable surprising experience to the consumers. In this way, it is stated that the future of Changi airport is bright and beautiful (Bozarth, Handfield & Chandiran, 2013). The organization provides well-maintained facilities including entertainment zones, movie theatres, snooze gardens, and lounges. In today’s era, the company is planning for future development and expansion. The planning is done by the firm to tackle and manage the future challenges and demands. As such, Changi airport designs and creates new passenger terminals that can initiate the future changes to enhance and improve the transform passenger experience. Airside management is accountable for handling the many vital and complex tasks on the taxiways, and runways (Merkert & Alexander, 2016). Changi airport group is ongoing effort to improve and enhance the safety at Changi airside through education (Goetz, 2015). The organization will also introduce airside safety induction in the briefing. Changi’s key freight segments include pharmaceuticals, perishables, and e-commerce freight. It has been noted that Changi is one of the biggest airports for air cargo in the world. Changi airport works with the best to use the newest technology, process, and excellent hardware to ensure the safety and health of the passengers in the future (Magalhães, Reis & Macário, 2013). To use Changi airport’s sustainable growth and to attain the needs of the passengers and airlines, visionary master planning would be done by the company. It has been believed that Changi experiences would be positive and enjoyable. It will help to meet the demands and needs of the future. The company is trying to initiate terminal 5 for the future needs and requirements. The construction of terminal 5 is going on and it would be completed by the end of 2020 (Changiairport, 2018).

Supply Chain Management

The terminal 5 will be completed by 2030; it will increase and enhance Changi’s annual capacity by 50 million passengers primarily and up to 70 million if needed which would mean 150 million passengers a year as compared with the current capacity of 82 million. The terminal 5 can eventually tackle 70 million passengers a year. Furthermore, the company is gaining new opportunities to develop and build connectivity to China’s emerging cities (Hanaoka & Saraswati, 2011).

The company is planning for the forecasting of passenger volume in the airport from 2016 to 2020. The company is using historical data of the three factors to validate and train the neural network in order to reduce issues and biases. The company also uses validated weights and biases to forecast the passenger volume (Feng, Li & Shen, 2015). Along with this, Changi group airport starts its master planning process by measuring and evaluating the airport’s capacity requirements and needs. Changi airport is planning for automated check-in and security counters to shift the customer’s faster so they can feel happy and spend money for eating and shopping. In this way, Changi airport has been able to attain long-term mission and vision in the international market (Heracleous & Wirtz, 2012).

Conclusion and recommendations

On the above discussion, it has been concluded that Changi is one of the leading and growing airports in Singapore. Changi airport is also named the best airport in Asia. In today’s era, the company is trying to build a strong financial position in the global market. The airport is providing enormous attractive services to the passengers worldwide. In today’s modern world, Changi airport is going to construct the terminal 5 in near future. Furthermore, it uses unique and effective supply chain management within the organization. The organization has created inventive thoughts and best practices worldwide. This has made to stand out against the competitors in the marketplace. Apart from this, effective planning and forecasting are done by the company to attract more passengers. The above analysis shows that how the company is making planning for determining long-term progress in the market.

Now it is recommended that Changi airport should focus on the future growth and development. Changi airport must also focus on the strategies and plans of the competitors to stay in the competitive market effectively. Marketing campaigns and advertisement shall be used by the firm to promote its services in the international market. Along with this, corporate level and growth strategies shall be initiated by the firm to maximize the profitability and strive with the competitors in the global market.

Air Freight Operations

References

Alexander, D., & Merkert, R. (2018). The air cargo industry. In The Routledge Companion to Air Transport Management (pp. 57-75). Routledge.

Bozarth, C. C., Handfield, R. B., & Chandiran, P. (2013). Introduction to operations and supply chain management (p. 387). Harlow: Pearson.

Castro, R., & Lohmann, G. (2014). Airport branding: Content analysis of vision statements. Research in Transportation Business & Management, 10, 4-14.

Changiairport.,(2018). About us, Retrieved from 9^th May 2018,< https://www.changiairport.com/en/aboutus.html>

Changiairport.,(2018). Engineering the future, Retrieved from 9^th May 2018,< https://www.changiairport.com/corporate/our-expertise/engineering-the-future.html>

Changiairport.,(2018). Our story, Retrieved from 9^th May 2018,< https://www.changiairport.com/corporate/about-us/our-story.html>

Changiairport.,(2018). Our story, Retrieved from 9^th May 2018,< https://www.changiairport.com/content/dam/cacorp/publications/Changi%20Connections/2011/Changi_Connection_-_Dec_2011.pdf>

Changiairport.,(2018). Singapore change airport annual report, Retrieved from 9^th May,< https://www.changiairport.com/content/dam/cacorp/publications/Annual%20Reports/2017/CAG%20AR2016-17%20-%20Full%20Version%20FA.pdf>

Changiairport.,(2018). Sustainbility, Rteireved from 9^th May 2018,< https://www.changiairport.com/corporate/csr/sustainability.html>

Chao, C. C., Lin, H. C., & Chen, C. Y. (2013). Enhancing airport service quality: A case study of Kaohsiung international airport. Journal of the Eastern Asia Society for Transportation Studies, 10, 2235-2254.

Chung, T. W., Ahn, W. C., Jeon, S. M., & Van Thai, V. (2015). A benchmarking of operational efficiency in Asia Pacific international cargo airports. The Asian Journal of Shipping and Logistics, 31(1), 85-108.

Feng, B., Li, Y., & Shen, Z. J. M. (2015). Air cargo operations: Literature review and comparison with practices. Transportation Research Part C: Emerging Technologies, 56, 263-280.

Goetz, A. R. (2015). 24 The expansion of large international hub airports. International Handbook on Transport and Development, 363.

Halpern, N., & Graham, A. (Eds.). (2018). The Routledge Companion to Air Transport Management. Routledge.

Hanaoka, S., & Saraswati, B. (2011). Low cost airport terminal locations and configurations. Journal of Air Transport Management, 17(5), 314-319.

Heracleous, L., & Wirtz, J. (2012). Strategy and organisation at Singapore Airlines: achieving sustainable advantage through dual strategy. In Energy, Transport, & the Environment (pp. 479-493). Springer, London.

Jarach, D. (2017). Airport marketing: Strategies to cope with the new millennium environment. Routledge.

K?lk??, ?., & K?lk??, ?. (2016). Benchmarking airports based on a sustainability ranking index. Journal of Cleaner Production, 130, 248-259.

Magalhães, L., Reis, V., & Macário, R. (2013). Airport flexibility: a first glimpse on the external factors. In 13th World Conference on Transport Research, Rio de Janeiro.

Merkert, R., & Alexander, D. W. (2016). Managing Freight Operations Chains of Passenger Airlines at International Airports. In Airline Efficiency (pp. 221-241). Emerald Group Publishing Limited.

Pak, J. K. (2017). A Detailed Analysis and Design for Future Proofing Singapore’s Changi Airport (Doctoral dissertation, University of Hawai’i at Manoa).

Reynolds-Feighan, A. (2013). Comparative analysis of air freight networks in regional markets around the globe. In Handbook of Global Logistics (pp. 325-366). Springer, New York, NY.

Sheffi, Y. (2012). Logistics clusters: delivering value and driving growth. MIT press.

Sheffi, Y. (2013). Logistics-intensive clusters: global competitiveness and regional growth. In Handbook of global logistics (pp. 463-500). Springer, New York, NY.

Sui Pheng, L., Manzoor Arain, F., & Wong Yan Fang, J. (2011). Applying just-in-time principles in the delivery and management of airport terminal buildings. Built Environment Project and Asset Management, 1(1), 104-121.

Tsui, W. H. K., Balli, H. O., Gilbey, A., & Gow, H. (2014). Operational efficiency of Asia–Pacific airports. Journal of Air Transport Management, 40, 16-24.