Speech by Minister S Iswaran (Industry) at the opening Ceremony of Airbus Asia Training Centre

SPEECH BY MR S. ISWARAN, MINISTER FOR TRADE AND​ INDUSTRY (INDUSTRY) AT THE OPENING CEREMONY OF AIRBUS ASIA TRAINING CENTRE AT 12 SELETAR AEROSPACE CRESCENT AT 4.45PM ON 18 APRIL 2016

Your Excellencies

Mr Fabrice, President and CEO, Airbus

Mr Goh Choon Phong, CEO, Singapore Airlines

Distinguished guests, 

Ladies and gentlemen,

Good afternoon.

Opening

1. I am delighted to join you today at the opening ceremony of the Airbus Asia Training Centre (AATC) at Seletar Aerospace Park.

2. Let me first congratulate Airbus and SIA on your successful partnership. I understand that once the AATC is fully operational, it will be Airbus’ largest pilot training centre globally. At steady state, the centre will have eight full-flight simulators with the capacity to train more than 10,000 trainees per year, out of a combined global capacity of 31,000 trainees per year.

3. This training centre will add to the vibrant community at the Seletar Aerospace Park, which is already home to more than 60 aerospace companies. 

Singapore’s aerospace sector has grown significantly and will continue to see strong demand for aftermarket services from the region. 

4. Aerospace is an important growth industry for Singapore. Our aerospace sector has expanded at a compound annual growth rate (CAGR) of 8.6% over the past two decades. This is almost double the 

5% CAGR of our broader manufacturing sector over the same period[1]. Today, Singapore is the top maintenance, repair and overhaul (MRO) hub in Asia, contributing to over 10% of global output.

5. With the rapid increase in air travel in the Asia Pacific region, we can be sanguine about the growth prospects for our aerospace sector. For instance, the Asia Pacific region alone will see the delivery of over 13,000 new passenger and cargo aircrafts[2] in the next 20 years, representing more than a third of global aircraft deliveries.

6. To support this fleet growth, it is estimated that over 100,000[3] commercial pilots will be needed in the Asia Pacific over the next two decades. Coupled with the need for the recurrent training of existing pilots , there will be a strong demand for pilot training services in the region. We also expect strong growth in other aftermarket services such as financing, spares support and fleet management.

7. These developments present significant opportunities for Singapore. And, we will continue to invest in our people and work with partners, like Airbus and SIA, to benefit from the growth in aftermarket services.

The establishment of the Airbus Asia Training Centre in Singapore will extend Airbus’ after market capabilities, and strengthen Singapore’s position as the leading aftermarket regional hub.

8. The Airbus Group is Singapore’s long-standing partner. The Group’s activities in Singapore include regional sales for Southeast Asia, MRO for helicopters and turboprop engines, spare parts distribution and customer technical support coperations. Collectively, the Airbus Group employs over 600 people in Singapore. Airbus also recently announced a joint venture with SIA Engineering Company in airframe maintenance and cabin upgrades, as well as a “Future Hangar Initiative” where it will collaborate with local institutions to develop technologies that improve the efficiency of aircraft maintenance.

9. The establishment of AATC with SIA will deepen Airbus’ aftermarket capabilities in Singapore. It will also bring Airbus closer to its customers in the Asia Pacific. Regional airlines will now have a convenient and easily accessible Airbus training facility close to their home operating base. The AATC provides a premium “in region, for region” service to its airline customers from Singapore. 

Partnerships will be key to our industry development and transformation efforts. The centre is a good example of a partnership that benefits Airbus, SIA and Singapore.

10. Changes in global trade patterns and the advent of new technologies are reshaping the global economic environment, disrupting industry structures and business models. Indeed, this was a subject of discussion at the recent Budget, and also the focus of the Committee of the Future Economy. Given the uncertainties of this changing landscape, we need to further harness the spirit of partnership in our industry development and transformation efforts. Partnerships among industry players, and between the public and private sectors, will ensure that talent with different perspectives and skills collaborate in order to mitigate risks, and optimise our resources. 

11. The AATC is a good example of a partnership that benefits Airbus, SIA and Singapore. For example, the training centre will combine Airbus’ deep domain knowledge with SIA’s operational excellence as an airline, leading to a competent and capable pool of pilots trained to support the needs of Singapore’s aerospace industry and the wider 

region.

12. The establishment of AATC will also create highly-skilled jobs, including flight instructors and simulator technicians. This partnership will provide new career pathways and opportunities amidst our industry transformation efforts. Let me share an example of how this has benefited a Singaporean. Captain Vincent Nunis enjoyed a long and successful career with SIA for 38 years, first as a flight engineer and then a pilot, before retiring as a flight instructor at the age of 63. He has now taken on a new challenge at AATC as a Standardisation Instructor, where he will train both pilots and pilot instructors. We need to forge more of such partnerships that bring benefits to our partners and our people, who can learn and refine their skills over the long-term.

Closing

13. In closing, I would like to warmly welcome Airbus Asia Training Centre to the Seletar Aerospace Park, and to our growing aerospace ecosystem for aftermarket services. 

14. My congratulations once again to the teams from Airbus and SIA on the formation of this important partnership, and I wish you every success in this venture.

15. Thank you.

[1] Research & Statistics Unit, EDB

[2] Airbus Global Market Forecast, 2015 – 2034

[3] Source: Airbus

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