Review of Airline Industry to Assess Need for Structural Changes

Dr Lim Wee Kiak asked the Minister for Transport (a) whether the Government will set up a committee to examine whether there should be structural changes in our airline industry; and (b) how many airline employees have lost their jobs between 2016 and 2017.

Our airline industry is growing steadily. Since 2015, the airline workforce has grown by more than 5% to nearly 17,000 workers today. Company staff attrition rates have not been unusual. In 2016 and the first six months of 2017, for example, while Singapore-based airlines saw about 2,600 employees leaving their employment, a larger number, about 3,400, joined the airlines.

The airline industry is, of course, not immune to disruptions brought about by technology, foreign competition and innovative business models. The Civil Aviation Authority of Singapore and the Changi Airport Group, for example, work closely with the airlines to develop new routes and increase traffic to and from Singapore. Importantly, airlines have to regularly evaluate their value proposition in order to stay relevant and competitive. Management and unions are alive to the competition and understand the need for continuous restructuring and embracing automation to raise productivity and meet rising consumer demand.

There are several platforms for the Government and the airlines to discuss these changes and jointly formulate our response strategies, such as our industry engagement session by the Connectivity Subcommittee in 2016 to inform the works of the Committee on the Future Economy (CFE). In line with the CFE recommendations, we have launched the Air Transport Industry Transformation Map in April this year, to grow value-add per worker, improve the quality of jobs and raise productivity. This will further support our airlines' efforts to stay ahead of the competition.