Changi to be 'Corporatised' by July next year

[MAN Flyer]

Bolding is mine. Not sure how they could make the place much better than it is (we won't mention lounges...) but kudos for trying.


SINGAPORE: Singapore's Changi Airport will be corporatised by July 2009. It will be split into two entities - a regulatory arm and a new airport company.

The regulatory arm will oversee functions such as air traffic services, air services negotiations, safety, customer service and economic regulations.

The new civil aviation authority will be piloted by Mr Lee Hsien Yang as Chairman.

The airport company will undertake the operational functions of managing Changi Airport, running its emergency services as well as operations and investments in foreign airports. It will be a wholly owned subsidiary of Temasek Holdings.

Mr Liew Mun Leong, chairman of the Civil Aviation Authority of Singapore, will helm the new airport company.

The Transport Ministry said on Tuesday that corporatisation will make Changi Airport more innovative and nimble.

The corporatised entity will have greater wage flexibility to attract and retain talent, which would make Singapore a more competitive air hub.


http://www.channelnewsasia.com/stori...380867/1/.html

[Lobster]

Well I just hope that they do not follow the BAA model of corporatised airports.

[Greatfox]

the government won't completly cut ties, they never do. Also, Lee Hsein Yang... any relation to the rather famous Lee family?

[9V-JKL]

the government won't completly cut ties, they never do. Also, Lee Hsein Yang... any relation to the rather famous Lee family?

Lee Hsien Loong's younger brother. Not sure if your question was in jest though

[flyguy]

such "corporatisation" is only technical - as Temasek is still 100% owned by the S'pore govt anyway. And Lee Hsien Yang is the second son of MM Lee Kuan Yew.

[Greatfox]

oh I missed the bit about Temasek taking it over, it's definetly still in the hands of the government if Hsien Loong's brother and wife are running it. I did mean that question in jest too btw

[flyguy]

from right hand to left hand only

[up and away]

Well I just hope that they do not follow the BAA model of corporatised airports.

Well, that wouldn't make SIN a

more competitive air hub

[huaiwei]

Bolding is mine. Not sure how they could make the place much better than it is (we won't mention lounges...) but kudos for trying.

I would think the benefits are less to do with actual running of the airport, but the talent that the new entity can recruit and retain after freeing itself from the mandatory (and sometimes stifling) civil service manpower policies. An immediate and obvious benefit is that this entity can now set salaries according to market rates, making it far more competitive against its rivals attempting to pouch its employees to replicate the Changi success story. And all these, without the government actually loosing significant control.

[flyguy]

it makes it much easier for the govt through temasek to raise airport charges and any other charges as then technically its a "private" company.

[inix]

it makes it much easier for the govt through temasek to raise airport charges and any other charges as then technically its a "private" company.

Reminds me of SP!

[jhm]

I would think the benefits are less to do with actual running of the airport, but the talent that the new entity can recruit and retain after freeing itself from the mandatory (and sometimes stifling) civil service manpower policies. An immediate and obvious benefit is that this entity can now set salaries according to market rates

Given what I understand top civil servants and ministers in Singapore are paid already, I'm not sure this is the reason...

[MAN Flyer]

it makes it much easier for the govt through temasek to raise airport charges and any other charges as then technically its a "private" company.

I don't think that has got anything to do with it whatsoever. If Changi Airport sees the need to raise charges it will do so, and they won't need to change ownership arrangements to do it.

Given what I understand top civil servants and ministers in Singapore are paid already, I'm not sure this is the reason...

Indeed !.

[huaiwei]

Given what I understand top civil servants and ministers in Singapore are paid already, I'm not sure this is the reason...

Well apparently it has been well documented in the press that practically every top manager of CAAS has been or are being poached by other entities, in particular those from the Middle East.

Here's someone's take on how CAAS could avert this drain...

http://www.straitstimes.com/Free/Sto...ry_157958.html

But I am not sure if I agree with it in total, in particular that section called "Changi Airport's International Ranking". As a matter of fact, Changi has won the Skytrax award just twice out of ten years, but does that really reflect anything for Changi to worry profusely about?

[flyguy]

well by corporatising and having a new "CAAS" already meant higher costs already - as putting LEE Hsien Yang there must mean paying a couple of million dollar pay to him - which is already higher costs and for someone who is not from any airline or air-related field. It will not help Changi as a destination airport if any increased costs as a result from this "new entity" and corporatised airport. The immediate future of Changi will be compromised if higher costs are passed to airlines using Changi; and as the next generation of aircrafts have extended range and economics which would allow an airline to bypass n drop Changi as a transit airport or as a "technical" stop.