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Executive Summary

This report will cover links between CAAS and the aviation system, followed by strengths and

weaknesses of CAAS’s methods in developing each component and recommendations on how to

improve CAAS. We will explain reasons behind it and how CAAS can use these recommendations

to develop other components, ensuring a bright future for Singapore aviation.

2. Introduction

CAAS is an arm of the Ministry of Transport, a governmental board. CAAS' roles are to oversee

and promote safety in the aviation industry, develop Changi Airport, provide air navigation services

(ANS), grow Singapore as a centre for aviation knowledge and contribute to the progression of

international aviation. From strengthening Changi Airport’s operations to providing better

meteorological services, CAAS has a part in it.

3. Components of the Aviation System

Key components of Singapore’s aviation system are Airports, Airlines, Air Navigation Services &

the Civil Aviation Authority. Singapore’s system is unique because CAAS is responsible for the

CAA itself and ANS. All components are closely interlinked with each other and a change at any

one level of the system can cause implications for other segments.

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4. The Singapore Aviation System

4.1 Airlines

Key players in Singapore’s airline industry include the main local carriers, Singapore Airlines

(SIA), SilkAir, Scoot, Jetstar and Tiger Airways.

4.1.1 How does CAAS ensure the development and success of airlines?

CAAS has successfully signed ASAs with more than 100 countries, including 40 open skies

agreements. This ensures that SIA has the first mover advantage. SIA can quickly mount flights,

thus gaining awareness and customers. With CAAS acting fast and efficiently, SIA can then have an

advantage over its competitors through building up a solid brand.

For example, CAAS and the Indonesian CAA have been working together the last few months on a

newly expanded bilateral agreement resulting in SIA introducing a ninth daily flight into Jakarta.

To CAAS's credit, in 1997, Singapore concluded an open skies agreement with USA, a first for an

Asian nation. This example strongly highlights CAAS ensuring the development and success of

airlines.

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4.1.2 The strengths and weaknesses in what CAAS does in working with this component.

Strengths

CAAS is a very flexible, supportive regulator as it understands the needs of airlines. During the

financial crisis in 2008, it extended a S$130 million relief package to airlines. The Air Hub

Development Fund offers landing and rental rebates for airlines and their offices thus helping them

tide over the downturn.

Weaknesses

CAAS does not foster enough competition among airlines in service offerings and fares. The

example of SIA dominating the Singapore to Moscow route without a competing Russian based

carrier or another local carrier deprives customers of choices, allowing SIA to increase prices when

needed.

4.1.3 Possible recommendations on how CAAS can better develop and contribute to this

component’s success.

Pilots or engineers notice minor mistakes daily and are most likely afraid to admit them for fear of

red tape, unnecessary investigations and prosecutions for trivial matters. However, total elimination

of accidents or serious incidents is unachievable. No human efforts or systems can be risk-free.

Failures are expected to occur despite stringent prevention measures. The system must seek to

control such risks and errors.

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CAAS should encourage honest reporting of mistakes by aviation personnel and fair judging

according to circumstance as it is essential in improving flight safety. This culture needs to be

inculcated in the system in order to further any airline’s success.

4.2 Airports

Changi Airport is managed by Changi Airport Group (CAG). It is the 7 th busiest international airport

in the world and 2nd in Asia. Key players at the airport include SATS, DNATA and ASIG.

4.2.1 How does CAAS ensure the development and success of Changi Airport?

CAAS has imposed airport regulatory frameworks to ensure safe and secure operations, competitive

pricing and high service standards while encouraging CAG to be innovative in airport operations

and invest in capacity ahead of demand.

CAAS has ensured continuous development of Changi Airport by planning 20 years ahead. It has

drawn up plans for a Terminal 5 and a third runway. There is even an inter-agency Changi 2036

Steering Committee to look into the airport's future needs by developing concept plans for future

expansion.

4.2.2 The strengths and weaknesses in what CAAS does in working with this component.

Strengths

CAAS is able to establish a strong foundation for Singapore as an international air hub by

increasing Changi Airport’s competitiveness. Plans and developments, like upgrading of Terminal 1

and construction of Terminal 4, are aimed to further improve the airport infrastructure. Furthermore,

CAAS works well with industry stakeholders to develop Seletar Airport into a business aviation hub

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to enhance Singapore’s air connectivity. This is seen through the establishment of major brands like

Rolls Royce at Seletar.

Weaknesses

Although CAAS encourages competition, they have not done more to ensure fair competition

between ground handlers. An example is CAAS tendering the third ground handling contract to

ASIG. Although CAAS has given ASIG the contract, it does not ensure a fair playing field for ASIG

as SATS dominates 80% of the ground handling business.

4.2.3 Possible recommendations on how CAAS can better develop and contribute to this

component’s success.

CAAS can improve Changi Airport in two ways. To make it a stronger international hub, it should

look at developing alliance based terminals in future terminal developments so as to increase the

operating efficiency and provide seamless transfers between connecting flights.

Secondly, to truly advocate free competition, CAAS should set up laws preventing any ground

handling operator dominating the market so as to give each operator equal business opportunities.

For example, it should introduce ASIG to new carriers coming into Singapore to give it a chance to

capture the market.

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4.3 Air Navigation Services (ANS)

CAAS is responsible for providing ANS in the Singapore Flight Information Region (FIR). Unlike

other countries, Singapore's ANS is not privatised or commercialised.

4.3.1 How does CAAS ensure the development and success of air navigation services?

As an ANS provider, CAAS anticipates changes and stays relevant to ensure air traffic management

(ATM) keeps abreast of market demand. In the last 5 years, CAAS has enhanced ATM procedures

and runway capacity resulting in reduced flying distances translating into time and cost savings.

This is shown where CAAS and NTU, a research intensive university, recently signed an agreement

to establish the ATM Research Institute (ATMRI) for R&D in ATM. ATMRI hopes to find solutions

to transform ATM thus raising safety standards and efficiency of our ANS.

4.3.2 The strengths and weaknesses in what CAAS does in working with this component.

Strengths

CAAS actively supports investing in latest technology and equipment used by ANS, so as to keep

their services updated to be at the forefront in providing world-class ANS. For example, CAAS is

currently working on improving the LORADS by spending S$300 million to be the first to

implement LORADS III, proving its commitment in working with ANS.

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Weaknesses

CAAS has many safety departments from quality management to human factors. Presently these

departments are autonomous meaning that the responsibility of safety management is spread out.

For example, if an accident occurs, the ANS department will take a longer time to conclude an

investigation due to the workload being spread to many departments.

4.3.3 Possible recommendations on how CAAS can better develop and contribute to this

component’s success.

One problem is the provision of meteorological services, where pilots need to extract essential

information from content-heavy meteorological reports. This is a disadvantage because in

Singapore, the meteorological area is very active and diverse. Therefore pilots need to multitask,

increasing their workload and distracting them from flying the aircraft.

CAAS should encourage the meteorological department and air traffic control to come together in

forums to discuss how to better relay information to pilots through a standardized format. CAAS

should integrate these departments under a common management system, to reduce possible

conflicts of interests and encourage pooling resources and databases to allow CAAS to focus on

providing safer ANS.

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4.4 The CAA as a regulatory board

4.4.1 How does CAAS ensure the development and success of the CAA?

ICAO and CAAS have signed an agreement to prepare senior management to allow them to carry

out their responsibilities effectively as decision makers. An example is the establishment of the

ICAO-Singapore Aviation Security Leadership and Management Seminar. It moulds future players

in the industry to understand standards and objectives set by ICAO to protect civil aviation from

security threats.

Through improvement of CAAS manpower, it ensures that future policy makers are far sighted and

are able to understand possible implications of their policies. They would know how to make

appropriate and decisive decisions as a regulatory board to develop Singapore aviation into one of

success.

4.4.2 The strengths and weaknesses in what CAAS does in working with this component.

Strengths

CAAS maintains collaboration with international organizations such as ICAO, and contributes

expertise towards the continued development of international aviation policies and standards to

ensure efficient and sustainable air transport. For example, CAAS has served on the Council of

ICAO since 2003 and the ANC since 2005.

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Weaknesses

CAAS is currently unable to better promote itself to the general public to raise awareness about the

aviation sector, especially in the area of possible career prospects within the aviation industry. As

such, this might further worsen the problem of shortage in supply of pilots and expertise in the field

of aviation.

4.4.3 Possible recommendations on how CAAS can better develop and contribute to this

component’s success.

CAAS has concluded collaborative agreements with various internationally renowned Institutes of

Higher Learning (IHLs), like Embry-Riddle Aeronautical University (ERAU). These agreements

increase collaboration between CAAS and IHLs on joint development of aviation-focused

programmes. CAAS hopes that these IHLs will address the increase in demand for specialised

personnel in Singapore due to growing global air traffic.

However CAAS should focus on increasing support for local talent. A demand in the industry is

shown from the doubling of the first intake of students by (ERAU). CAAS has done enough at

polytechnic levels and should move towards establishing more aviation specialised courses in local

universities in Singapore to cater to local students by building more distinct pathways to an aviation

career.

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5. References

[1]“Media.” [Online]. Available:

http://appserver1.caas.gov.sg/caasmediaweb2010/opencms/Journalist/Press_Releases/2013/news_0
002.html?__locale=en&site=caas. [Accessed: 14 June 2013].

[2]Singapore. Civil Aviation Authority of Singapore, (Issue 02 2013). THE LEADING EDGE safety
at the forefront. [Online]. Available:
http://www.caas.gov.sg/caasWeb2010/export/sites/caas/en/About_CAAS/Our_Publications/EDM/2
013/may2013/theLEADINGedge_issue2_2013.pdf [Accessed: 17 June 2013]

[3] Singapore. Civil Aviation Authority of Singapore, (6th March 2013). Advisory Circular. [Online].
Available:
http://www.caas.gov.sg/caasWeb2010/export/sites/caas/en/Regulations/Safety/Advisory_Circulars/
AC-1_series-General/AC_1-3_4_Safety_Management_System_AOC_holders_SAR-
145_AMOs_x_ATOs.pdf [Accessed: 19 June 2013]

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