Singapore’s air transport recovery journey

Innovation and transformation for the breath of air the travel industry needs

Digital innovation as a solution for air travel

As the world gradually emerges from more than two years of lockdowns and travel safety measures, what is the role that innovation can and will play to rebuild travel confidence and to improve the end-to-end travel experience?

Technology, automation, and innovation will be key to relaunching air travel operations and creating competitive differentiation among air travel operators. Data intelligence will be heavily used to calibrate operations, for example, adding excess operational capacity too soon, and/or getting a wrong sense of demand, may mean correspondingly high related costs and risk. Careful planning and strategy will be needed to survive and thrive in the future and innovation teams will become a key resource to create and nurture this growth.

Even though airport and airline IT budgets were slashed because of COVID-19, spending on automation saw a rise. While there are numerous hurdles to overcome to stimulate global travel, low-touch and efficient operations have become essential. COVID-19 taught the air travel industry that it is crucial to regain travellers’ confidence in safety without sacrificing efficiency. Airports and airlines continue to use automation and digitisation to future-proof their operations and provide seamless travel in the face of ongoing health concerns.

Other innovation such as touchless technology in air travel will accelerate, including technology such as touchless biometrics to verify passenger identity. Wi-Fi opportunities and touchless in-flight entertainment systems are also expected to be further deployed by more airlines. In addition, airports and airlines will need to start working closely together to boost retailing opportunities to enter the e-commerce and mobile commerce world. For this to happen, data exchange, innovation sharing, and digital cooperation needs to occur between airlines and airports.

READ MORE: Is Singapore 5G ready?

Sustainability and the air transport industry

Various industry experts link innovation with sustainability and there is indeed a tenable relationship. There is increasing interest in how businesses and travellers can do their part to contribute to sustainability efforts. In this section, we will focus solely on sustainability in the air travel industry and zoom in on what Singapore is doing.

McKinsey’s survey of more than 5,500 air travellers around the world, conducted in July 2021, showed that sustainability remains a priority for the aviation industry. Respondents who plan to fly less to minimise their environmental impact was at 36 percent. Globally, almost 40 percent of travellers were willing to pay at least two percent more for carbon-neutral tickets, i.e. about $20 more for a $1,000 ticket.

Emissions was the top concern of respondents in 11 of the 13 countries polled. Regarding climate change, more than half were “really worried”, and thought that aviation should grow to be carbon neutral in the future. For now, travellers may continue to prioritise price and connections over sustainability. However, they might start to make different decisions if the booking process can more prominently highlight carbon reduction measures that will result in genuine environmental impact.

Airport efficiency and sustainability will work hand in hand

Agility, scalability, and operational efficiency have become crucial considerations for airports due to the unpredictable and fast-changing environment brought about by COVID-19. Airports will need to operate lean, adapt to fluctuating passenger numbers, and drive supplementary revenue to survive. In addition to operational efficiency, innovation can also help airports drive substantial sustainability gains. Almost all airports will implement business intelligence solutions for better visibility across their operations, which will help them more tightly manage costs and be more efficient with resources.

According to the Airports Council International, 235 airports across Europe have committed to net-zero carbon emissions by 2050, and more than 90 airports hope to achieve this by 2030. Many airports have implemented sustainability projects to improve airport infrastructure such as building green spaces, use of natural light, use of renewable energy, recycling points, and smart building technology. In fact, industry figures estimate that the improvement to aviation operations and infrastructure may reduce emissions by up to 10%.

Singapore as a sustainable air hub

With sustainability being a key priority for Singapore’s aviation sector, the Ministry of Transport and the Civil Aviation Authority of Singapore (CAAS) announced plans for the Singapore Sustainable Air Hub Blueprint. The blueprint aims to cut emissions, put in place other green initiatives, and is targeted be ready by 2023. A 20-member International Advisory Panel was set up to drive the development and publication of the blueprint which will focus on the key areas of sustainability in airport, airline, and air traffic management and will set medium-term (2030) and longer-term (2050) goals and identify practical, tangible pathways to achieve them.

At the International Advisory Panel’s inaugural meeting, Transport Minister S. Iswaran commented, “While the immediate focus of the Singapore air hub is to revive air travel, we cannot lose sight of the longer-term challenge of climate change. Sustainability is a national priority for Singapore.”

Having said that, the Sustainable Air Hub Blueprint is not the nation’s first green initiative:

1. Singapore is one of the 107 states which voluntarily participated in the pilot phase of the Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA) to meet a global aspirational target of carbon-neutral growth from 2020. In addition, Singapore is also offering other countries capacity building support to help them implement their CORSIA commitment.
2. CAAS is working with key industry players to decarbonise the air travel sector, such as installing solar panels, electrification of ground fleet, implementing more energy-efficient systems and the use of more renewable energy at Changi Airport.
3. Singapore Airlines (SIA) announced a one-year period starting from the third quarter of 2022, where all SIA and Scoot flights out of Changi Airport will use a blend of refined jet fuel and neat sustainable aviation fuel made from used cooking oil and waste animal fats. This pilot project is projected to reduce about 2,500 tonnes of carbon dioxide emissions.

At the Singapore Airshow 2022, Mr. Iswaran said, “And the (air hub’s blueprint) will articulate how Singapore can contribute to the decarbonisation of international aviation as well as our national sustainability efforts. This is a challenging endeavour especially at a time when aviation companies are still dealing with the effects of the pandemic…. It will require strong public-private partnership and cross-sectoral collaboration to innovate and reinvent the aviation eco-system.”

Singapore will seek to push ahead in a sustainable manner, but it will have to be done in a way that safeguards economic capability.