On Wednesday, Minister Mentor Lee Kuan Yew, while speaking at the launch of the new Civil Aviation Authority of Singapore (CAAS) and the Changi Airport Group, said that Singapore should prepare for new aviation challenges, by restructuring and strengthening its airport operations and regulatory system as the present economic crisis has adversely affected the air travel.

Lee specified that Singapore should be ready to meet the next wave of demand for air travel, which would be created by the emerging economies in Asia and the Middle East.

According to Lee, the aviation industry would bounce back, once the global economy recovers.

Lee believes that business models should be re-examined by full service carriers, which should also form new alliances or mergers. He said that the Changi Airport and Singapore Airlines (SIA) must not be left behind in the different operating environment.

He pointed out that Changi Airport Group must have the enough drive and plan to capitalize on the new opportunities in order to face the increasing competition.

Lee concluded: “As a corporation, it is better able to aggressively pursue overseas business ventures and investment opportunities.” He further added, “It has the advantage of Changi as a brand name to enlarge its international presence. This will give greater flexibility to respond quickly to changes in the industry and in the global business environment. It will also attract and retain top talent to compete with global airport operators.”