Research Report of Comparison

between Management of Kuala Lumpur

International Airport (KLIA) &
Singapore Changi Airport

MME30001 ENGINEERING MANAGEMENT 1

Prepared for: Ms. Tan Yiing Chee

Group 22

Group Members: Student ID:

Lim Yung Shen 4316738
Angela Go Mei Yee 4317297
Farah Fairoza Korok 4324439
Eric Ting Wei Xiang 4316614
Hari Prakash Thanabalan 4303512
Marufjon Marajabov 4325753
Table of Contents
1. Introduction ..................................................................................................................................... 1
1.1. Executive Summary ................................................................................................................ 1
1.2. Acknowledgement .................................................................................................................. 1
1.3. Purpose.................................................................................................................................... 1
1.4. Scope ....................................................................................................................................... 1
1.5. Methodology ........................................................................................................................... 2
1.6. Significant Findings ................................................................................................................ 2
1.7. Benefit of the study ................................................................................................................. 2
2. Background ..................................................................................................................................... 2
2.1. KLIA ....................................................................................................................................... 2
2.2. CHANGI AIRPORT ............................................................................................................... 3
3. Environmental Factors .................................................................................................................... 3
3.1. Internal Environment of KLIA ............................................................................................... 3
3.1.1. People oriented................................................................................................................ 3
3.2. Internal Environment of CHANGI AIRPORT ....................................................................... 4
3.2.1. Customerfocused: To provide worldclass services to customers ................................. 4
3.2.2. Employee oriented .......................................................................................................... 4
3.3. External Environments of KLIA and CHANGI AIRPORT.................................................... 4
3.3.1. Customers (Specific Environment) ................................................................................. 4
3.3.2. Competitors (Specific Environment) .............................................................................. 5
3.3.3. Political and Legal (General Environment) .................................................................... 5
3.4. PEST ANALYSIS .................................................................................................................. 5
3.4.1. KLIA ................................................................................................................................... 5
3.4.1.1. Political ....................................................................................................................... 5
3.4.1.2. Economy ..................................................................................................................... 5
3.4.1.3. Social........................................................................................................................... 6
3.4.1.4. Technology ................................................................................................................. 6
3.4.2. CHANGI AIRPORT ........................................................................................................... 6
3.4.2.1. Political ....................................................................................................................... 6
3.4.2.2. Economy ..................................................................................................................... 6
3.4.2.3. Social........................................................................................................................... 6
3.4.2.4. Technology ................................................................................................................. 6
4. Sustainability................................................................................................................................... 7
4.1. KLIA ....................................................................................................................................... 7

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 4.1.1. Environmental Conscious ............................................................................................... 7
4.1.2. Sustainable Operation Management ............................................................................... 7
4.1.3. Environmental-friendly design ....................................................................................... 7
4.2. CHANGI AIRPORT ............................................................................................................... 8
4.2.1. Environmental Conscious ............................................................................................... 8
4.2.2. Sustainable Operation Management ............................................................................... 8
4.2.3. Environment-friendly design .......................................................................................... 8
5. Ethical Issues .................................................................................................................................. 8
5.1. KLIA ....................................................................................................................................... 8
5.1.1. Management Issue........................................................................................................... 8
5.1.2. Labour Issue .................................................................................................................... 9
5.1.3. Environment Issue........................................................................................................... 9
5.2. CHANGI AIRPORT ............................................................................................................... 9
5.2.1. Management Issue............................................................................................................... 9
5.2.2. Labour Issue .................................................................................................................... 9
5.2.3. Environment Issue........................................................................................................... 9
6. Social Responsibility ...................................................................................................................... 9
6.1. KLIA ..................................................................................................................................... 10
6.1.1. Marketplace Development ............................................................................................ 10
6.1.2. Workplace Development............................................................................................... 10
6.1.3. Community Development ............................................................................................. 10
6.1.4. Environmental Sustainability ........................................................................................ 10
6.2. CHANGI AIRPORT ............................................................................................................. 10
6.2.1. Society........................................................................................................................... 10
6.2.2. Environmental ............................................................................................................... 11
7. Porters Five-Forces Model .......................................................................................................... 11
7.1. Threat of New Entrants ......................................................................................................... 12
7.2. Threat of Substitutes ............................................................................................................. 12
7.3. Bargaining Power of Buyers ................................................................................................. 12
7.4. Bargaining Power of Suppliers ............................................................................................. 13
7.5. Intensity of Rivalry ............................................................................................................... 13
8. SWOT Analysis ............................................................................................................................ 13
8.1. KLIA ..................................................................................................................................... 13
8.1.1. Strength ......................................................................................................................... 13
8.1.2. Weakness ...................................................................................................................... 14
8.1.3. Opportunities................................................................................................................. 14

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 8.1.4. Threats........................................................................................................................... 14
8.2. CHANGI AIRPORT ............................................................................................................. 15
8.2.1. Strength ......................................................................................................................... 15
8.2.2. Weakness ...................................................................................................................... 15
8.2.3. Opportunities................................................................................................................. 16
8.2.4. Threats........................................................................................................................... 16
9. Problems Faced ............................................................................................................................. 17
9.1. Structured Problems .............................................................................................................. 17
9.1.1. Technical problems ....................................................................................................... 17
9.1.2. Passengers ..................................................................................................................... 17
9.2. Unstructured Problems .......................................................................................................... 17
9.2.1. Weather ......................................................................................................................... 17
9.2.2. Diseases......................................................................................................................... 18
10. DECISIONS .............................................................................................................................. 18
10.1. KLIA ................................................................................................................................. 18
10.1.1. Programmed Decision ................................................................................................... 18
10.1.2. Policy ............................................................................................................................ 19
10.1.3. Procedure ...................................................................................................................... 19
10.1.4. Non-Programmed Decision........................................................................................... 20
10.2. CHANGI AIRPORT ......................................................................................................... 20
10.2.1. Programmed Decision ................................................................................................... 20
10.2.2. Policy ............................................................................................................................ 21
10.2.3. Procedure ...................................................................................................................... 21
10.2.4. Non-Programmed Decision........................................................................................... 22
11. Decision Making ....................................................................................................................... 22
11.1. KLIA ................................................................................................................................. 22
11.1.1. Right decision ............................................................................................................... 22
11.1.2. Wrong decisions............................................................................................................ 23
11.2. CHANGI AIRPORT ......................................................................................................... 23
11.2.1. Right Decision .............................................................................................................. 23
11.2.2. Wrong Decision ............................................................................................................ 24
12. Recommendations ..................................................................................................................... 24
13. Conclusion ................................................................................................................................ 24
BIBLIOGRAPHY .................................................................................................................................... i
Appendix ..................................................................................................................................................I

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1. Introduction
The research report is to discuss the efficiency and effectiveness of a management. Two organisations
with the same industry are chosen for discussion. Two organisations chosen for this research report
are Kuala Lumpur International Airport (KLIA) and Singapore Changi Airport. KLIA is Malaysias
main aviation hub opened on 27 of June 1998 by Yang di-Pertuan Agong Tuanku Jaafa. Changi
airport is an airport awarded the world best airport and it is one of main aviation hubs in Asia. Changi
airport is operated by Changi Airport Group.

1.1. Executive Summary

The research report discusses about the management of KLIA and Changi airport. Through this
report, the background and history of both airports will be learnt. Both external and internal
environmental factors which influence two organisations are discussed. PEST analysis is used to
analyse politics, economy, social and technology of both organisations. Sustainability, ethical
issues and social responsibility of both organisations are also studied. SWOT analysis is also used
on KLIA and Changi airport in order to analyse their strength, weakness, opportunity and threats.
Porters Five-Forces Model is used to determine whether the business have an opportunity to be
profitable comparing with another business in the same industry. This report also discovers the
problem faced and how the organization to manage the problems as well as the decision they
made.

1.2. Acknowledgement
The team would like to appreciate our lecturer/tutor, Miss Tan Yiing Chee, who guide us and
gave us some precious advices in helping the team to finish up this report. Besides that, the team
would like to thank fellow course mates who helped us when the team faced minor difficulty.
Furthermore, this unit, Engineering Management 1, gave us the opportunity to study more on the
management of different organizations that can be applied in future.

1.3. Purpose
The main purpose of this report is to study the challenges that both organizations, KLIA and
Changi Airport, faced, and their internal and external environment as well. This research report is
conducted in aspects of both organizations backgrounds, environmental factors, sustainability,
ethical issues and social responsibilities. Besides that, PEST Analysis, SWOT Analysis and
Porters Five Forces have been conducted to acquire the view on effectiveness and efficiency of
both organizations current condition. Furthermore, the right and wrong decision making were
studied to understand management problem when they faced. Lastly, the comparison table were
prepared to show the contrast and similarity between the two organizations.

1.4. Scope
This research project report was completed by proper allocation of specific tasks by six persons in
a group. The duration of the report was within the deadline of the research report, which is the
13th week. The research project report was broken down into a few tasks which served as
milestones, given time constraints within the 13 week duration. The given tasks were being sub
tasked for the opportunity of all five members to participate and contribute in each of the
subsequent tasks. Although there were some issues regarding the availability of information
during the research, the team was able to complete all tasks successfully within the deadlines,
respectively meeting the criteria for the tasks.

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 1.5. Methodology
There were various methods used while conducting the research project report. For instance, all of
the lectures from general management were being used to further understand the definitions of
each of the titles required in the research project used for comparisons. Aside from that,
secondary sources such as business journals, news, online articles as well as travelling blog
websites proved to be very useful and were utilized for the research project report. Proper Harvard
referencing was done for each subsequent references used, and all of the references were cited in
the report for clear review.

1.6. Significant Findings

KLIA and Changi Airports have several of differences and similarities between them. However,
the analysis forms of our researches and findings can be applied to both of the airport. Both of
these famous friendly-environmental airports, which are KLIA and Changi Airport, have their
own respectively ways and decision-making in order to solve various problems that have and will
be encounter by them, making them unique in their own way.

1.7. Benefit of the study

According to all of our researches and findings, the benefits that we gained from the study are the
pros and cons of both of these high-tech international airports. The benefit also shows that even
though both of the airports are the most famous high-tech environmental-friendly international
airport in the world, they can never escape from small yet rare situations. Throughout the progress
of learning for this research, it helps us to understand the proper way of researching as well as
obtaining new general knowledge about these airports.

2. Background
2.1. KLIA
Kuala Lumpur International Airport (KLIA) is one of important aviation hubs in Asia. It is
situated at Sepang district which is approximately 50 km from Kuala Lumpur (Malaysia Airports
Holdings Berhad 2015). KLIA occupies a size of 10 km x 10 km with 4,000 metre long runways
which is the largest airport in Malaysia (Kara, H 2007). KLIA is operated by Malaysia Airports
Holdings Berhad (MAHB) and it is a part of Multimedia Super Corridor (MSC) where new
technology is practiced actively (Malaysia Airports Holdings Berhad 2015).

The KLIA project started in the late 1990s to help relieving the strain of Sultan Abdul Aziz Shah
Airport. It is designed to handle about 25 million passengers and a million tonnes of cargo a year
(Kara, H 2007). KLIA was opened by the King, Yang di-Pertuan Agong Tuanku Jaafa on 27 of
June 1998 (Kara, H 2007). KLIA is located at the great location as it is surrounded by four main
cities which are Kuala Lumpur, Seremban, Malacca and Shah Alam and thus it is a main area
offering opportunities for businesses. Besides that, KLIA tries to be an airport with a homely
atmosphere (Malaysia Airports Holdings Berhad 2015).

KLIA is designed with Airport in the Forest, Forest in the Airport concept hence it is built in the
jungle with flexibility for future expansion. The satellite building is implanted by the rain forest
and the surrounding streets are lined by trees with the help of Forest Research Institute of
Malaysia (Malaysia Airports Holdings Berhad 2015). KLIA has won a lot of awards from
international organisations such as International Air Transport Association and Skytrax since year
1998 due to its continuous achievements to provide the great services to passengers. Green Globe,
the global certification for sustainable tourism, had recognized KLIAs promise to promote the
environmental responsibility for local and foreign visitors. This made the airport to be the first
and only airport in global to receive Green Globe 21 certificate in year 2004 and onwards.

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 Apart from that, KLIA was also awarded the Platinum status in EarthCheck Benchmarked Airport
global certification in year 2012. The airport was also voted frequently as the Worlds Best
Airport which had achieved around 25 million passengers annually in 2005 AETRA awards, 2006
ACI-ASQ awards and 2007 ACI- ASQ awards (Malaysia Airports Holdings Berhad 2015).

2.2. CHANGI AIRPORT

Changi Airport is built on the reclaimed land which is at the eastern edge of Singapore (Tan, BM
2004). There are three airports which are Seletar Air Base, Kallang Airport and Paya Lebar
airport in Singapore before having Changi International airport. Due to massive amount of
passengers causing air traffic and insufficient space for future expansion in Paya Lebar airport,
the government decided to build a new airport, Changi International airport on June of 1975 to
replace it (Changi Airport officially opens 2015).

The final plan of Changi airport was done by Airport Branch of Public Department (PWD) based
on a preliminary plan and was agreed by Airport Consultative Committee of the International Air
Transport Association (Changi Airport Singapore 2015). The government finished the site
preparations including massive earthworks and reclamation in May of 1977 and started the phase
1 of Changi airport in June. Phase 1 included the buildings and facilities construction as well as a
control tower, a passenger terminal known as Terminal 1 and a runway.

In Phase 2, the airport was added a second passenger terminal which is Terminal 2 and another
runway (Changi Airport officially opens 2015). In January 1997, Singapore initiated an open skies
agreement with United States and Singapore is the first in Asia to establish an agreement with US.
On 1 July 1981, Changi airport replaced Paya Lebar airport and became a new international
airport in Sinapore. On 29 December 1981, it was then opened officially by Minister of Defence
Howe Yoon Chong (Changi Airport officially opens 2015). Changi airport still have further
improvements after inauguration day. In March 2006, Changi airport opened Asias first Budget
Terminal for flight operations and Terminal 2 upgrading project was finished officially in
September. Two runways and taxiways of airport were also resurfaced.

In August 2008, the worlds first garden in airport, The Butterfly Garden opened in Terminal 3s
Departure Transit Lounge. The garden as a tropical nature park has the size of 330 square metres
containing two-storey open-air garden with more than one thousand butterflies. To have a better
taxi supply for passengers, a new Taxi Management System is implanted in airport. Since the
opening of Changi airport, it has won plenty of awards. The first award was won in 1988 which is
Best Airport in the World from a magazine named Business Traveller (UK) and it is the award
that Changi airport received the most currently. Apart from that, Changi airport also received
different awards such as Skytrax, ACAA, DestinAsian and others (Changi Airport Singapore
2015).

3. Environmental Factors
Every organisation is affected or affected by its environmental factors, same to airports.
Environmental factors can be divided into two components, the internal environment and external
environment of the organisations. Internal environment is about the airports cultures and external
environment is about the external factors that are influenced and influenced by the political,
economic, social and technological. PEST analysis is to analyse the airports external environment.

3.1. Internal Environment of KLIA

Providing World-Class Aviation Gateways; Managing Cost-Effective Airport Network and
Services; Exceeding the Expectations of Customers, Shareholders and Other Stakeholders.

3.1.1. People oriented

KLIA has people oriented organizational culture, as they emphasis on their employees.
KLIA considers its workforce as greatest and more precious assets. In 2013, KLIA focused

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 strongly on the holistic and personal development of its employees. That included offering
educational assistant so that they may pursue higher education, and addressing stress that its
employees might been facing at work. Furthermore, Airport has annual rewards on
recognition of outstanding employees who demonstrate high contribution to the company.
Programs for skills management and lifelong learning provided at KLIA that support the
continued employability of employees (upon retirement) and help them in dealing career
endings. Pre-retirement program was designed for the workers who have reached 53 years of
age and above. The program aims to arm these employees with knowledge and assist them in
managing life after retirement both financially and socially. The duration of the program is
three days and is led by an external consultant. This once more proves that the culture in
KLIA is people oriented.

3.2. Internal Environment of CHANGI AIRPORT

To ensure constant service innovation and hold its worldclass ranking, Changi Airport defined
CORE elements for innovationa decision which brought CA the Singapore Quality Award
(SQA) in 2003 for business excellence:

3.2.1. Customerfocused: To provide worldclass services to customers

Executing its core value CA worked on promoting Changi as a people-friendly international
airport. CA is the first airport to introduce thematic lounge. CA offers passengers in transit
with at least five hours to sparea free twohour city tour.

3.2.2. Employee oriented

Similarly to the KLIA, Changi concerns with employees wellbeing. As the employees are
happy then the service will be in high quality which consequently brings to the delighted
clients and desirable outcomes. In order to make employees work hard and stay loyal to the
company, Changi Airport has an Annual Employee Satisfaction Survey which was conducted
since 2011. It enables the employers to study the satisfaction level of employees, and then
further improvise on taking care of their employees. For example, Changi Airport has
prepared a private space for staff to take a rest from time to time to boost their productivity
for the day. During break time, the organization also prepares entertainment activities such as
television and internet services. Moreover, Changi Airport encouraged their staff to go
beyond the call of duty. In 2014, one of the employees received the top award of Service
Personality of the Year for the 5th time in her 33 year aviation sector career.

3.3. External Environments of KLIA and CHANGI AIRPORT

3.3.1. Customers (Specific Environment)

Both the airports cannot run without customers. Customers, one of the external
environmental factors, which will affect the airports in various ways that the management
team needs to pay attention to them. KLIA and Changi Airport are held at the South East Asia
but the culture and lifestyle of both airports are different. Therefore, both the airports are to
taken seriously into account to bring satisfaction to customers from all around the world into
respectively countries which will boost the image of the airports and economy of country
(Mohani, Mohd Khairi & Yahya 2015).

Customers satisfaction is divided into five components, empathy, tangibility, assurance,

responsiveness and reliability. Customers were satisfied by tangible components of KLIA
such as, the quality of facilities and communication service provided by KLIA. Moreover,
KLIA pays attention to customers empathy and responsiveness services. Furthermore, KLIA
lacks of assurance and reliability of services. Customers feel that the security inspection is the
weakest feature in KLIA (Mohani, Mohd Khairi & Yahya 2015).

Changi Airport serves the finest customer service in industry-wide with the Customer
Satisfaction Index of Singapore (CSISG) of 85.5% in Singapore. The Changi Experience

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 Agents (CEAs) are the service officers who respond to all the customers who need assistance.
The CEAs roam around the airports with iPads to provide services to customers (Changi
Connection 2013). Besides that, Changi Airport is not only the best airport in the world, as
well as, Best Airport for Leisure Amenities, awarded by SKYTRAX. There are swimming
pool, music deck, cinemas, napping, music bar lounges, rest areas and in-terminal Transit
Hotel. These leisure amenities are unique features specially prepared for customers with extra
time to spare in airport (SKYTRAX 2015).

3.3.2. Competitors (Specific Environment)

Being of the largest airports, KLIA and Changi Airport have a lot of competitors around the
globe. In this era, Changi Airport competitors are no longer in the South East Asia. Changi
Airport has competition wider afield from other region such as, the best top 10 airports in the
world, in term of efficiency, service, facilities and infrastructure. Changi Airport is constantly
improving its facilities and paying attention to customers even for a short layover to promote
and attract more customers to visit Changi Airport. Besides that, operators help to avoid
costly stopovers for largely transit traffic airlines. In another words, a lot of big airlines will
eventually choose to stop at Changi Airport (Leo 2015). Malaysia has better geographically
placed for air hub than Singapore, but Changi Airports current capacity of 66 million
passengers while KLIAs capacity of 40 million passengers. Changi Airport is constructing a
new terminal 4, expected ready in 2017, while terminal 5 is constructing in 2014 (Leo 2013).
At the meantime, KLIA is planning to accommodate 100 million passengers annually. In
2014, KLIA 2, new terminal located 2 kilometers away from KLIA, was built as the largest
Low Cost Carrier Terminal in the South East Asia to hit their 100 million passengers annually
goal (Sharir, Khalid, Bohari, Bachok, Mohamed Osman 2012).

3.3.3. Political and Legal (General Environment)

Every airport around the world needs to overcome the constraints in the political and legal
environment. There are numerous types of rules and regulations for airports, such as the rules
and regulations for airport environmental, safeguarding airports, aviation emissions and
aircraft noise (Australian Government, 2015). These rules and regulations are tightly
constraining both airports due to the concern of environmental effects, global climate changes
and to avoid illegal act of crimes. Moreover, these rules and regulations are changing
consistently from time to time. At the meantime, these factors can also affect the expenses of
the airports (Federal Aviation Administration 2015).

3.4. PEST ANALYSIS

3.4.1. KLIA

3.4.1.1. Political
Government of Malaysia owns KLIA. There is a powerful political tie between KLIA and
Government of Malaysia. Therefore, KLIA obeys the rules and regulations to attract more
foreign investors to invest in Malaysia.

3.4.1.2. Economy
An important source affecting economy of international airport is the collaborator. With
the large amount of collaborator, there will be more passengers visit Malaysia and thus
improve the economy. For an example, Air France served Paris a three time flight weekly
departure from Kuala Lumpur and these flights will supplement KLM, an airline of
Netherlands to Malaysian capital. These two-way relations between France and Malaysia
showed the growing economic progress and also a good position for KLM and Air France
to use Kuala Lumpur as location increasing KLIA presence in Asia (Air France Launches
Its Paris Kuala Lumpur Route 2013).

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 3.4.1.3. Social
KLIA and society are directly affecting each other. People around the world arrive and
depart to KLIA daily. Average of 20 million passengers comes to KLIA for the first half
year (KLIA passenger traffic in H1 climbs 15.5% 2013). Besides that, there are a lot of
premium airlines associate with KLIA such as, Emirates Airlines, Singapore Airlines,
British Airways and many more (KLIA.com 2015).

3.4.1.4. Technology
KLIA provides various technologies to have good services to passengers and this makes it
to win awards in services and operation. KLIA is the first airport in the world that
provides free Wi-Fi reception over the entire area in 2009. Malaysia Airports introduces a
unique service at KLIA which is the Flight Information Speech System (FISS) as known
as KLIA 1 Touch. KLIA 1 Touch is a self-service interactive voice response (IVR)
providing the passengers with flight information. Through this service, the passengers can
identify the flight number as well as the origin or destination city and it will provide both
conventional airlines and low-cost-carries departing information at KLIA. After KLIA 1
Touch, Malaysia Airports also initiated the web portal www.flyklia.com which is another
world first innovation which provides the itinerary builder (Ponnampalam, A 2011). With
these help of technologies, KLIA can be managed well.

3.4.2. CHANGI AIRPORT

3.4.2.1. Political
Changi Airport is also own by Government of Singapore. Therefore, there are more
political environmental factors tie to Changi Airport. Singapore is an Island of Laws;
therefore, there are more rules and regulations to obey for Changi Airport.

3.4.2.2. Economy
The international airport has to keep improving so that its economy will be only
increasing. Apart from a butterfly garden inside airport, Changi airport is preparing to
build a new terminal which is terminal four in 2017 to increase the passenger capacity.
Besides that, Changi airport is also developing a new project known as jewel. The
project is about a rain in vortex form falling from the roof about 40m from the ground
surrounding by Singapores largest indoor garden. This will attract the passengers to have
a look for it and thus increasing the economy. As terminal four be a test-bed, Changi
airport started to plan the development of fifth terminal in future (Molko, D &
Senthilingam, M 2015). To regulate airport economic, Civil Aviation Authority of
Singapore (CAAS) carried out a pricing regulation to make sure the Changi airports
aeronautical charges keep competitive. In service regulation, CAAS aims to make sure
that the service standard at Changi airport will be maintained at the best condition. Last
but not least, in competition regulation, CAAS used the Airport Competition Code to
make sure the market conduct will be fair and efficient with airport licences as the
safeguard of airport facilities and services (CAAS 2014).

3.4.2.3. Social
Changi Airport is the best airport in the world, it associate with more airlines around the
world. Average of 26 million passengers enters Singapore for the first half year (June
busiest month of 2015 so far for Changi Airport 2015).

3.4.2.4. Technology
As one of the leading airport, Changi Airport sure focuses on introducing new
technologies to their operation. Steve Lee, chief information of Changi Airport Group
(CAG) believess that airports must continue to evolve in order to meet passengers needs
and provide the best experience for them (Ranasinghe 2014). Emphasizing on customer

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 service, Changi airport has adapted an Instant Feedback System (IFS). This system has a
touch-screen interface and is located at busy locations for customers to provide feedback.
Mobile technology was also widely used in the operations of the airport. For instance, the
iChangi app provides flight information, changes and terminal maps to passengers thru
step by step navigation. Apart from that, CAG has another iPad application for its staff,
known as Service Workforce Empowerment and Experience Transformation (SWEET).
Providing real-time operational data, this app allows staff to assist passengers with
queries on the spot. CAG IS constantly exploring new opportunities to bring new
technologies into their operation, Mr Lee added. (Choudhury 2015).

4. Sustainability
Developments without damaging or harming needs of future humanity or the ecological balance of the
earth (Sustainable design).

Sustainability is now playing a major role airport development programmes, says Emanuel Fleuti,
Head of Environmental Services at Zurich Airport.

Airports set environmental targets by conserving and recycling. A research was done on the
sustainable development of Changi Airport and KLIA airport in terms of operations, design,
maintenance and administrative procedures.

4.1. KLIA

4.1.1. Environmental Conscious

Operated by Malaysia Airports, Kuala Lumpur International Airport (KLIA) has set great
plans for sustainability. Starting by waste management, Malaysia Airports launched a
recycling program to reduce landfill waste produced daily. Held on the third Friday every
month, recyclable products collected by each department will be weighed and the department
with the most waste will be rewarded. According to the Sustainability report by Malaysia
Airlines (2013), in the month October, a total collection of 8143.5 kg paper products and
121.6 kg bottles was made due to this effort, thus proving its success.

Besides that, Malaysia Airports is also making efforts to conserve the usage of water for
operation. According to the annual sustainability report for year 2014. The main water
resource currently is from public utilities. However, Malaysia Airports aims to reduce the
airports potable water consumption by 5% and increase greywater usage by 20% by year
2020. The airport will be practising the 3Rs, reuse, reduce and recycle water as an attempt to
conserve water. In order to prevent pollution, used water will be treated before being
discharged back to the river.

4.1.2. Sustainable Operation Management

KLIA has established a Resource Management Task Force managed by the Sustainability and
Transformational Management Office (TMO). The task force included professional experts
from various divisions in resource management (Energy, Water, Waste and Carbon). The
sustainability report of KLIA (2014) mentioned that initiatives and targets were set according
to the ISO14000 standards. Then, strategic action plans were performed to achieve the
expected results. The employees of the airport are encouraged to be environmentally
responsible to promote environmental awareness.

4.1.3. Environmental-friendly design

KLIA airport was designed using a unique concept known as 'Airport in the Forest, Forest in
the Airport'. As green as it sounds, an entire section of rainforest was transplanted in the
Satellite Building. This was made possible with the co-operation of the Forest Research
Institute of Malaysia. Besides that, the airport had installed solar power systems on rooftops

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 to produce renewable energy for consumption. In October 2014, 12,092.2 tonnes of carbon
dioxide emission was avoided due to the help of solar panel systems.

4.2. CHANGI AIRPORT

4.2.1. Environmental Conscious

As one of the most highly awarded airports in the world, Changi Airport is known for making
big efforts toward environmental sustainability. According to a media release by Changi
Airport (2010), the airport group (CAG) has established a set of practices to be carried out in
order to conserve energy use and resources. For example, the dimming of lights in airport
terminals during off-peak hours, maximise the use of natural lighting and installing motion
sensors to conserve electricity. The airport group expects to reduce electrical usage by 13.5
million kWh per year compared to year 2010.

Currently, less than half of Changi Airports water source depends on potable sources. The
remaining water usage is supported by the use of recycled water from rainwater (Changi
Airport Group 2015). Located in Singapore, the airport uses a technology known as NEWater.
According to PUB, Singapores national water agency (2015), NEWater is produced from
treated used water through the process of Reverse Osmosis. The water produced is substituted
for applications such as fire-fighting, sanitation, irrigation and cooling purposes Other than
that, installation of tap flow regulators also help to limit excess water flow. Changi Airport
Group (CAG) targets to increase recycled water usage over the years.

4.2.2. Sustainable Operation Management

Recognising its responsibility in sustainability, Changi Airport Group has adopted the
Environmental Management System (EMS) supported by the Singapore Airlines Group.
(Singapore Airlines Ltd, 2010). Based on ISO 14001 standards, this system strive to minimize
the negative environmental impacts brought by the industry. As stated in the sustainability
report by Singapore Airlines (2014) , objectives and measurable targets regarding
environmental issues are set and consistently monitored. Training of staffs will be carried out
in order to educate them about the practices and management based on ISO 14001.

4.2.3. Environment-friendly design

Designed so that optimal amount of daylight can be directed into the building, Changi airport
aims to make use of natural resources and conserve energy. The whole airport has a green
tropical interior, including a cactus garden, fern garden, orchid garden and a sunflower
garden. Out of the 3 terminals of Changi airport, all three of them were awarded the Green
Mark Gold status. Launched by the Building and Construction Authority (BCA) in January
2005, the Green Mark scheme aims to promote the adoption of green building technologies.

5. Ethical Issues
5.1. KLIA

5.1.1. Management Issue

In 17 May 2014, KLIAs management department was criticized as a poor crisis management
due to the technical malfunction of the Aerotrains, a train that transfer the passengers from the
main terminal to the satellite building of KLIA. Therefore, the management team had
prepared 4 buses and 6 vans in other to transfer the passengers.

The problem is that the transportation that had been prepared to the passenger can be only
transfer 100 passengers at once to the satellite building. As a result, a lot of passengers were
waited in a long queue for 2 hour and left stranded at the Kuala Lumpur International Airport.

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 5.1.2. Labour Issue
At Kuala Lumpur International Airport, labour is not an issue for them as they won the
Employer of Choice Silver Awards 2013. The employees are considered as precious and an
important asset to the airport as they provided educational aid for their workers who want to
pursue higher education and at the same time, they focus on the personal development and the
holistic of their employees. So far, there are more than 8000 new employee, 66.9% are male
and 33.1% are female, have been hires to work at Kuala Lumpur International Airport.

5.1.3. Environment Issue

Kuala Lumpur International Airport is known as one of the best airport in the world.
However, there was a report of a rat being found in the first class area on one of the
commercial aircraft which was originated from Kuala Lumpur International Airport on 13
January 1999. The experts had been hired and sent to look into this problem as they decided
to use the glue to exterminate the rodents.

The problem is that there are more than 700 rats in the airports area despite on the fact that
the location of the airport is used to be an oil palm plantation. However, the usage of the glue
to terminate the rodents has shown a positive effect as the population of the rats has reduced
50-60 in a day.

5.2. CHANGI AIRPORT

5.2.1. Management Issue

Changi Airport is known as one of the largest central transportation in and number one airport
in the world. Their management focus on taking charge of the finest operational necessities
for Changi airports. They run effective management, infrastructural maintenance and
progress, particular on the airport schemes and aviation security. Their management team also
in charge for establishing strong safety management mechanisms, endorsing safety alertness
and marketing airport services to their passengers.

5.2.2. Labour Issue

According to Future Ready (2012, p.46), it was difficult to hire good employees given
Singapores inflexible labour condition. Hence, their solution was to develop a Productivity
Council to pursue initiatives to increase productivity levels and further improve efficiency
standards within the community in the airport. (Future Ready, 2012, p.67). They did not
inquire for services abroad but instead resorted to further improve and enhance the
community that was existed in the airport itself. This shows that they coped with their labour
issues by improvising the existing community.

5.2.3. Environment Issue

The Changi Airport is one of the most important economy contributors for Singapore as it is
highly awarded airports in the world. In 2010, the Changi Airport has established an
environmental board structure in order to avoid pollution, protect and increase the
environmental performance as well as regulatory compliance. The program is based on the
standard that have been made and debuted as Changi Goes Green in November 2010. The
airport has executed a numeral of environmentally-friendly applies as an effort to lessening
any negative effect on the environment.

6. Social Responsibility
Social Responsibility is an ethical act on how organizations commit and behave on making profit as
well as to take actions in their concern to the society and environment by maintaining the economic
development, social development and environmental factors, improving the quality of living standard
of the employees and the committee.

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And under social responsibility falls a term called corporate social responsibility, where Unido.org
(2015) stated that it is a management concept whereby companies integrate social and environmental
concerns in their business operations and interactions with their stakeholders.

6.1. KLIA
As KLIA is under the management of Malaysia Airports, the social responsibility of KLIA would
be of the same with Malaysia Airports. KLIA emphasizes on four areas of corporate social
responsibility, namely the Marketplace Development, Workplace Development, Community
Development, and Environmental Sustainability. (Malaysia Airports 2015, p. 9)

6.1.1. Marketplace Development

Malaysia Airports (2015, p. 10) states that to promote the establishment of the marketplace
segment in the airport, the management has organized a Vendor Development Programme.
This programme aims to help entrepreneurs to further establish their business across the
airport as it gives stable and competitive vendors an opportunity to take part in procurement
activities in the airport. (Malaysia Airports 2015, p. 10)

6.1.2. Workplace Development

The airport has launched a Human Capital Development programme for the employees of the
airport, which helps to nurture and develop the potentials of their staff, enhancing their
leadership skills and their preparation for the workforce to embrace challenges in the airport.
(Malaysia Airports 2015, p. 12)

6.1.3. Community Development

Malaysia Airports (2015, p. 13) states that a flagship community programme called Beyond
Borders was launched in the year 2007 for the benefit of academic sections of the society
such as the children as well as the teachers of schools. This program helps to improve and
enhance the academic performances via some engagement and support programme, as well as
to increase self-direction and personal efficiency by organizing project management
workshops for the teachers, interschool competitions and motivational talks. (Malaysia
Airports 2015, p. 13)

6.1.4. Environmental Sustainability

Energy efficiency practice is a part of the KLIA commitments to display sustainability and
environmental responsibility. (Malaysia Airports 2015, p. 14)

Malaysia Airports (2015, p. 14) states that the airport is dedicated to run a sustainable
business operation which are closely guided by laws and policies enforced by the Government
and hence established the Energy Management Unit to enforce the policy to control and
handle the energy effectively, decrease energy consumption and maintain the standards while
sustaining the safety of the airport operations. (Malaysia Airports 2015, p. 14).

6.2. CHANGI AIRPORT

The success of this airport group was its ability to confront the sustainability challenges in its
environment and to fulfill its corporate responsibility towards the future generations while
improving the value of their business. (Future Ready 2012, p.67)

6.2.1. Society
The Changi airport group of Singapore has initiated an obligation to support the youth
community of their country, believing that youths are the leaders of tomorrow and hence
committed to establish a foundation known as the Changi Foundation. (Corporate social
responsibility 2015)

Corporate social responsibility (2015) states that this said foundation is a non-profit
organization that aims to target the youths who are at a disadvantage and nurture them to

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 become active contributors to the society. This foundation assists the youth through three
ways, namely education, skills development and community service.

The Changi foundation will motivate the youths in their academics with various prizes as this
shows that the youths are able to combat their drawbacks and achieve good results.
(Corporate social responsibility 2015)

Various programme and activities planned by this foundation are held within the airport itself,
such as the Youth Passport Programme (YPP) and Be a Service Star. These programmes
are launched mainly to aid these youth in their skills development as they have a hands-on
experience at the managements in the airport. (Corporate social responsibility 2015)

Corporate social responsibility (2015) states that this foundation also drives the youths to
become positive and to give back to the society as well by being involved with community
projects as this gives the youths a life learning process when they come in contact with
individuals that are in worse conditions.

6.2.2. Environmental
Future Ready (2012, p.67) states that the Changi airport group magnifies the importance of
protecting the environment by initiating various steps to reduce the impact of the airport on
the environmental scale. Their initiatives would include an attempt on improvement on the
energy efficiency, a reduction the noise levels, an increase in the rate of recycling, a decrease
of waste as well as the usage of water, and also an enhancement on the water resource
management. (Future Ready 2012, p.67)

Leading towards the efforts they made, the airport then resorted to generate and complete a
carbon footprint study, measuring greenhouse gas emissions produced by the airport
operations. (Future Ready 2012, p.67) And as a result, Future Ready (2012, p.67) states that
the airport has achieved a Level 1 certificate standard under the Airport Carbon Accreditation
which was administered by the Airports Council International (ACI), proving that the airport
had managed to control and reduce their carbon emissions.

Future Ready (2012, p.67) states that a few distinct initiatives were taken by the airport to
protect the environment and promote environmental sustainability inside their management.
The Changi Airport Group initiated by raising awareness among the employees, encouraging
them to participate in spreading the message of sustainability. (Future Ready 2012, p.67) The
airport had also organized visit to the Gardens by the Bay and the Science Centres Climate
Change exhibition to reinforce the importance of reducing carbon emission. (Future Ready
2012, p.67) A staff activity was introduced as well, called Green Running Man race, where
the staff had to race around the office to complete missions regarding their knowledge on
carbon emissions matters. (Future Ready 2012, p.67) Apart from that, Future Ready (2012,
p.67) states that they had managed to dim the airport lights that were non-essential for 60
minutes during the Earth Hour duration for five year since the year 2013. This initiation
portrays the commitment of this airport to help in global climate change. Last but not least,
the Changi Airport Group also held a Green Bazaar, promoting and selling environmental-
friendly products. (Future Ready 2012, p.67)

7. Porters Five-Forces Model

The Porters Five-Forces was originally developed by Michael E. Porter from Harvard Business
School in 1979. The Porters Five Forces model are the five individual factors that determine whether
the business have opportunity to be profitable, compared with other businesses in the same industry.
Besides, it can help to develop their power in market and minimize their competitors. There are five
competitive forces in Porters Five Forces model which are, Threat of New Entrants, Bargaining

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Power of Buyers, Bargaining Power of Suppliers, Threat of Substitution and Competitive Rivalry
(Arline 2015).

7.1. Threat of New Entrants

The threat of new entrants can be defined as how ease or difficulty it is for new competitors to
enter an industry (Arline 2015). Accorinding to Porters model, this threat manipulate the current
competitive environment and it can also directly impact the profitability of the company (Martin
2014).

KLIA is the prime airport in Malaysia before KLIA 2 exists. The threat that KLIA faced is not
from other new international airport from other country but a new low cost terminal KLIA 2
which is located 10 to 15 minutes of driving distance. In term of size, KLIA is nearly twice as
large as KLIA 2 but KLIA 2 has the capacity to hold approximate 45 million passengers per year
compare with 25 million passengers per year for KLIA (Malaysia Central 2015). Due to the poor
economy, local passengers are most likely travelled with low cost airlines at KLIA 2.
Furthermore, KLIA 2 is a new airport with new infrastructure and it has better technology
compared with KLIA (Bright Green Technology 2015).

The competition of Changi Airport is among South East Asia region in term of geographical. So
far, the new entrant in South East Asia is KLIA 2. Although KLIA 2 is a new low cost terminal
but Changi Airport does not feel the threat, because Changi Airport is constantly updating and
improving itself. Besides that, Singapore government is constructing new terminals to be the
biggest and busiest airport in Asia.

7.2. Threat of Substitutes

The threat of substitutes to airport is fairly possible. Either the passengers choose to opt for
alternatives such as video-conferencing or the greatest threat is the high-speed rail. This only
happens in developed countries such as Europe. But in South East Asia, passengers choose to
travel to the places across the sea with airlines. Because it is time-saving and the price of the
flight tickets to travel around neighbour countries are cheap as well. The alternatives for South
East Asians to travel by using cars or cruise ships are very rare. In West Malaysia, the travel
distance from Kuala Lumpur to Singapore is roughly around 6 to 8 hours without traffic jam
compared with airplane, is roughly 1 to 1 and half hour. And the petrol fuel for the journey is
around RM 120 to Rm200 for a trip depends on car engine. Besides that, the toll fees are
approximately RM 50. For the two way trips cost around RM 500. For an early booking air ticket
from Kuala Lumpur to Singapore is less than RM 200. The trip is short, less tiring and budget as
well. For cruise ship to travel from Port Klang to Singapore, the journey takes around 3 days 2
nights with the price of RM1200 and above. Therefore, KLIA and Changi Airport are not
threatened by substitutes.

7.3. Bargaining Power of Buyers

Bargaining power of buyers is the power of the buyers to reduce the profit potential in an industry
as buyers increase the competition between industries (Porter 1980, p24-29). In general, KLIA
and Changi Airports buyers come from airlines. Airport collects charges from passengers who
enter the airport. KLIA and Changi Airport promotes theirs quality in order to attract major
international airlines other than MAS and SIA such as, Emirates, Qatar, Qantas, KLM and more
to link with them. In other words, the more the airlines, the more the customers. Changi Airport
constantly upgrades itself to impress more buyers to join their hub. Compares with KLIA, KLIA
has constant buyers from domestic flight.

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 7.4. Bargaining Power of Suppliers
Airport operator or third party is the supplier that supply services of airport product, such
as, air traffic control, security, ground handling and commercial facilities. Most of these
airport operators are provided by the government of their respective country. The way
they manage or serve their service can affect the airports competitive situation. As for
the airport, the management team need to manage all of these different suppliers. In
summary, the bargaining power of suppliers diverse significantly depending on the
condition of airport operations is considered and how they supply their products to
airports (Forsyth, Gillen, Muller & Niemeier 2010).

7.5. Intensity of Rivalry

The rivalry amongst the existing international airports around world varies considerably.
The competition between KLIA and Changi Airport are fairly tight due to the
geographical advantages at South East Asia of being the crossroads between Asia-Pacific
and Europe as regional hub. But the competitor such as Hong Kong International Airport,
HKIA, stepped into the competition to compete a gateway as an Asia hub. The
technological improvement in airline, the geographical advantages slowly shift to Middle
East. The current strongest competitor for South East Asia airports are Dubai
International Airport. Before Dubai International Airport joined the competition, Qantas
used Changi Airport as hub for Kangaroo Route to skip Middle East. In 2013, Dubai
manages Qantas to shift its hub from Changi to Dubai by making an agreement between
Qantas and Emirates Airline. The agreement allows Qantas customers to connect flights
on Emirates towards the destinations in Europe, Middle East and Africa. Due to the
expansion of Emirates Airline aggressively and Dubai International Airport lower their
airport charges, this help to bring more passengers to Middle East whether directly or
through network connectivity (Leo 2015).

8. SWOT Analysis
8.1. KLIA

8.1.1. Strength

8.1.1.1. Frequent technology development

As part of the Multimedia Super Corridor (MSC) in Malaysia, KLIA is no doubt included
in activities aimed to pursue new technology (Malaysia Airports, 2015). KLIA is
constantly improving its facilities and technology to provide the best experience for
passenger. Named the first airport in the world to provide free Wi-Fi reception over the
entire area (Ruckus 2011), KLIA has incorporated the use of Wi-Fi in their operation
systems and even aircraft handling. With the surface of mobile apps, KLIA has recorded
growth in terms of passenger movements throughout the years.

8.1.1.2. Culture-friendly environment

KLIA was ranked the best Muslim-friendly airport (CRaHFT 2013) based on its ability to
cater Muslim passengers needs. The ranking was made based on various sections,
including food, prayer facilities and quality of service. With the growth of Muslim
travellers, more airports are focusing on becoming culture-friendly. Located in Malaysia,

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 a multiracial country, KLIA has a lead start nurturing to different cultural needs, thus
earning the title as a culture-friendly airport.

8.1.1.3. Environmentally friendly

Taking on a recycling program, KLIA is focusing on the 3Rs in its operation to reduce
waste and conserve energy. The employees were encourages to be environmentally
responsible during operations which lead to efficient results. Sustainability targets were
set and achieved through constant motivation and monitoring. All these hard work has
made KLIA an environmentally friendly.

8.1.2. Weakness

8.1.2.1. Poor location

Located 50 km away from Kuala Lumpur city, KLIA requires a 1 hour drive. With the
growth of tourism, the faraway location is an inconvenience for travellers and passengers.
A majority of domestic flyers actually preferred to drive directly to their destinations
compared to taking off from KLIA. However, the airport has introduced a shuttle train
which can shorten the travelling time from the airport to the city.

8.1.2.2. Poor management

Throughout its operations, KLIA has received complaints about its poor management and
service. Besides having worn-out facilities without maintenance, the transport service was
extremely poor. On the customer review page (Skytrax 2015), it was shown that KLIA
had no clear markings and was only average in terms of cleanliness. The airport went for
form rather than function and is receiving negative comments from users for it.

8.1.3. Opportunities

8.1.3.1. Growth of airline industry

With the convenience of flying, the airline industry is definitely expanding. Riding on the
growth of passengers, airports are going to have a hike in income and performance too.
Especially in Asia-Pacific and Middle East regions, the passenger growth is expected to
be the strongest. Located in Asia and having good passenger capacity, KLIA is able to
accommodate the increasing number of passengers, thus resulting in the growth of
passengers.

8.1.3.2. Growth of tourism

The tourism industry is growing at an average rate of 12% per annum in Malaysia
(PEMANDU 2015). Located in Malaysia, KLIA is also experiencing growth of
passengers due to the expanding tourism. By serving mostly international carriers, KLIA
could benefit from the strong multi-cultural tourism attraction of Malaysia. It functions as
a transit hub for international tourists and therefore is closely linked to the tourism board.
By expansion of the airlines in KLIA, the airport is working hard to serve more customers
worldwide and internationally.

8.1.4. Threats

8.1.4.1. Rise of competitors

With the increase and rise of new competitors in the airport industry, KLIA is facing a
huge threat of keeping up with the competition. KLIA tends to stick to its current

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 condition instead of constantly improving its facilities like other new airports. Recently,
the new budget terminal, KLIA2 is built larger and better in technology compared to
KLIA resulting in a move of several airlines to the new terminal. Therefore, if this threat
is not handled properly, KLIA will face great loss.

8.1.4.2. Safety and Security Threats

As an international transportation hub, airports are always targeted by terrorists or
criminals. Therefore, airports play an important part in carrying out strict security checks
to ensure the safety of everyone. KLIA suffered a major loss from the MH370 incident
which happened back in 8 March 2014 (The Star 2015). The passenger movements,
mainly from China had a 20% drop in August as a result from the impact of the incident.
Therefore, it can be shown that safety and security will be a threat to KLIA airport.

8.2. CHANGI AIRPORT

8.2.1. Strength

8.2.1.1. Global presence

As an international airport, Changi airport serves more than 100 airlines flying globally to
80 countries. Every week, the air traffic of Changi airport could reach up to 6700 flights,
transporting a number of 54.1 million passengers throughout the airport a year (Changi
Airport Group, 2015). Named the best airport of 2015 (Skytrax 2015), Changi airport has
built its name as a successful international airline hub.

8.2.1.2. Strategic location

Located in Singapore, Changi airport is not only targeting the global market but also well
positioned enough to handle the forever-growing Asia market. The well positioned airport
between China, India and Australia is believed to be the worlds gateway to Asia and
Southwest Pacific. With the economic growth of economy in Asia, Changi airport is
attracting more business passengers and tourists due to its strategic location.

8.2.1.3. Environmentally friendly

Taking on a green design, Changi airport is definitely focused on environmental has even
taken on sustainable operations to conserve energy. Measurable environment targets will
be set and consistently monitored to ensure achievements. The airport terminals also
depends more on natural lightings and recycle the use of water. This helps to build a good
image of the Changi airport as a sustainable and environmentally friendly airport.

8.2.2. Weakness

8.2.2.1. High maintenance

In order to provide the best performance, airports require constant maintenance and
improvements. Changi airport is now building a new terminal (Terminal 4) to increase its
passengers capacity from 16 million to 82 million (CAAS 2015). This in turn leads to the
question is it really necessary for such expansions to increase passenger capacity, when
this decision obviously requires more costs, energy and resources. The governments
budget of 3 billion for the new terminal 5 is raising concerns from citizens calling it
immodest.

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 8.2.2.2. Demolishing low-cost carrier terminal
Changi Airports Budget Terminal was closed on 25 September 2012 (CAG 2012) to
make way for construction of terminal 4. This decision was made due to poor planning
which underestimated the growth of budget flights. The budget terminal suffered from
capacity shortfall, with not enough space to cater the needs of growing passengers. This
lead to the closing down of the budget terminal and building of the new terminal 4.

8.2.3. Opportunities

8.2.3.1. Growth of airline industry

Forecasts have predicted a rise in passenger numbers in the future (IATA 2013). This is a
big opportunity for Changi airport to expand its service and increase income. Serving a
large amount of international airlines, Changi airports air traffic is expected to continue
rising driven by strong demand.

Apart from that, as one of the leading airports, the Changi Airport Group has also planned
for the expansion of airport to withstand the increase in passengers. With an excellent
service and superior environment, the airport is now one of the leading airports in its
passenger growth.

8.2.3.2. Growth of tourism

The global tourism is experiencing unlimited growth and has now become one of the
main economic sectors of the world. As a developing country, Singapore is constantly
working hard to attract more tourists to boost its economy, and the Changi airport plays a
big part in this. Majority of tourists from Singapore are international tourists which travel
through flying. Changi being the best aviation hub is a bonus. It provides a luxury
experience for the tourist, suiting their needs and displaying a local cultured design.

The Changi Airport Group has teamed up with the tourism board of Singapore to
introduce a free Singapore city tour for all the passengers with spare time. The tourism
board even listed Changi airport as an attraction for tourism as the best airport of the
world.

8.2.4. Threats

8.2.4.1. Outbreak of pandemics and diseases

With the recent outbreak of MERS in May (Azman 2015), Singapore reported that a man
diagnosed with MERs had passed his transit check in Changi Airport. MERS, or known
as The Middle East Respiratory Syndrome will spread through contact and is deadly. This
news brought a big impact to the people and other passengers.

Changi Airport being the global connectivity hub will be the first to suffer from this
threat. Handling international passengers, the airport plays an important part in their
medical checks to ensure the health and safety of their staffs and users. The outbreak of
another disease, SARS in year 2002 had led to a fall in passengers in Changi airport(TMR
2003). This case was sufficient proof that outbreak of disease could bring a huge impact
to the airport.

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 8.2.4.2. Drop in demand of cargo
Despite the growth in passengers, Changi airport is facing a drop in cargo volume since
2012. This is happening due to the unstable economy trend and increasing fuel prices.
Fluctuating currency rates also affected the air cargo of international cargo. Therefore,
people are decreasing their use of air-freight parcels and settling for cheaper options like
ocean shipping. Due to these factors, Changi airport has experienced a 1.8 percent less
cargo compared to the year before (Reuters 2013).

9. Problems Faced
9.1. Structured Problems

9.1.1. Technical problems

Even the best airport in the world has technical problems in it. The current biggest problem
that Changi faces is the third runway. The current 2 runways at Changi can support up to forty
three thousands of flights annually. The experts predict at the end of this decade, Changi
could exceed forty four thousands of flight annually with the growth rate of 3 to 4 percent
yearly. The current problem is that with the two runways airport, it is very difficult to recover
the tight flight schedule. Same goes to the three runways, the situation will be even worse
than two runways airport (Kaur 2013).

The baggage collection system got worse than before. Lately, their baggage collection need to
wait about 20 to 30 minutes when reach the baggage collection hall. Besides that, there was a
case that KLIA did not displace a clear marking to land to collect baggage (Muzammil 2014).
The Aerotrains broke down due to technical problems. Their alternate solution was to
providing bus transportation to the terminals which takes around 20 minutes (Brown 2015).

9.1.2. Passengers
Flight delays are caused by the respective airlines but Changi Airport need to take care
passengers or customers who need anger management. One of the incident happened recently
at Changi Airport, the flight delayed for more than 21 hours and the flight was reschedule
seven times. The passengers were nearly caused a riot in Changi Airport (Channel NewsAsia
2015).

KLIA has the similar case as Changi Airport. There was a heated exchange between MAS
employee and passengers. The MAS employee was frustrated because he was dealing with
these passengers all at once (The Rakyat Post 2015).

9.2. Unstructured Problems

9.2.1. Weather
Due to the current bad weather condition, haze, flight was forced to cancel or delay within a
month (The Malaysian Insider 2015). Although KLIA and Changi Airport are still functioning
despite the low visibility due to haze but the airports in other region of Malaysia are affected.
This causes the flight from other region airports to KLIA or Changi Airport to cancel or delay
which affect the flight schedule in the respective airports schedule (The Borneo Post 2015).

Besides that, during the raining season at South East Asia, the heavy rain had hit KLIA or
Changi Airport which prevent the airplanes to fly out or in to the airports. The flight was

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 delayed upon arrivals at KLIA was diverted to other region airports (Yahoo News 2015).
Same goes to Changi Airport, the Tigerair flight returned back to Changi Airport after a short
take off due to the bad weather (Channel News Asia 2015).

9.2.2. Diseases
The diseases that can spread through breathing and skin contact are critical to humanity. In
between 2003 and 2004, the outbreak SARS spread vigorously around the world from China
through airlines. Due to this tragedy event, 600 or more flight bookings had been cancelled
and this result a drop of 3% in flights at KLIA (Tong & Yap 2003). Besides that, the impact
of SARS on Changi Airport had caused 58% drop of passenger traffic and 35% of aircraft
movement (Changi Airport responding to the SARS crisis 2003). After 5 years, another
deathly disease had influence the airline company, H1N1. The outbreak of H1N1 was once
again impacting all the airports around the world. Changi Airport suffered a drop of 8% of
passenger traffic (Ng 2009).

10. DECISIONS
10.1. KLIA

10.1.1. Programmed Decision

10.1.1.1. Check-in peak hours

Check-in and baggage drop are few of the common issues for the management
department of Kuala Lumpur International Airport faced every single day. Most of the
passengers prefer to drop their luggage about 15-30 minutes before their flight and check-
in to their flight 1-3 days before the departure day. Furthermore, some of the passengers
does not have luggage and yet they are required to stand in line just to check-in.

As a result, a lot of passengers had missed their flight because of the long queue at the
counters. Therefore, Malaysia Airports had been provided a service called the multi
check-in services and had been effectively on July 15, 2014. This service is consisting of
the advance check-in, return check-in, one-shot check-in, telephone check-in, no baggage
check-in and self-check-in.

10.1.1.2. Weather issue

One of the most important issues for the entire transportation hub in the world is the
weather issue. Despite of all the modern technologies of the airport have to predict the
weather, it cannot escaped from the unpredictable situation such as what happen on April
17, 2015 in which a heavy storm that hit Klang Valley had made 13 flights been diverted
to 4 other airports in Malaysia and cost a lot of passengers missed their next flight.

Therefore, KLIA main Meteorological Offices will provides the trend forecast and
weather report to the passengers every half an hour as the passengers can keep up with the
forecast of the weather and prepare in case of the changing weather occur. This kind of
information will be provided through the announcement on speakers, the airports
webpage and the display screen for arrival and departure flights.

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 10.1.1.3. Baggage Handling System Breakdown
KLIA experience a minor breakdown in their baggage handling system creating
mountains of baggage and hectic flight delays. According to authority, the problem was
caused by human errors and system failures. The problem was also caused by having not
enough bag carrying tubes.

However this problem was solved by obtaining 1,800 new bag carrying tubes which
caused RM 126,000. For the system related problem, information technology department
re-wrote the system and updated the software that is being used.

10.1.2. Policy

10.1.2.1. Environmental and Social Sustainability

KLIA leads other airports around the globe in championing environmental preservation
efforts when its Project Green Planet (PGP). As the global warming issue has becoming
hot around the world, KLIA's effort to promote conservation and protection of the
environment.

10.1.2.2. Baggage Allowance

KLIA offers 20kg allowance where excess luggages are charged if the passengers
baggage exceeds the weight. Over-sized luggages are checked in at the counter identified
for this purpose.

10.1.2.3. Privacy Policy

KLIA privacy policy handles information in accordance with the Personal Data
Protection Act 2010 and the laws of Malaysia. In the policy it explains the type of
personal information collected, the way of the information is collected and how is it used.
Also correcting and accessing personal information.

10.1.3. Procedure
Every airport has their own and very procedure. KLIA, too, have their very own procedure.

10.1.3.1. Arrival procedure

In KLIA, there are 10 gate entries at the five story Main terminal. International flights
arrive at KLIA Satellite building and the aero train brings you to Gate 5 of the main
terminal whereas the other flights arrive at Domestic terminal. In the immigration part,
passengers should have a legal passport valid for at least 6 months. There are total 48
immigration counters and there are 16 for transfer passengers.

For the customs part, visitors are allowed to bring a carton to cigarettes, one litre of liquor
and personal possession but narcotics, pornography and firearms are prohibited and there
are total of 26 customs lane located beyond the baggage claim area. Then the baggage
reclaim after the immigration customs checking are done.

10.1.3.2. Departure procedure

The departure level is located on the level 5 and it is for both domestic and international
flights. KLIA have a total of 216 check-in counters together with 6 check-in islands. After
the check in procedure is done including baggage drop, passengers then move to passport
checking then to immigration checking.

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 10.1.3.3. Transit Procedure
For transit, passengers are not required to undergo any formalities. As soon the
passengers disembark from the plane they will be given a plastic transit card. As for the
baggage, it can be transferred automatically to their connecting flight at the Transfer
counter. During transit, duty free shopping is allowed.

10.1.3.4. Special Assistance Procedure

At KLIA, they provide various ways to help their disabled guests. The disabled guests
need to request for complimentary ground assistance from the respected airline to provide
special assistance service. Their entire terminal offers ramps, elevators, restrooms, public
phone and other facilities that are easily accessible for disabled guests as well.

10.1.4. Non-Programmed Decision

One of the most common problems for an international airport is the queues issue. Kuala
Lumpur International Airport (KLIA) had been facing this problem since 2004, in which the
passengers numbers eventually increased to 21.1 million and as the result, queues been built
up throughout the airport.

A problem like this should not happen, especially to one of the busiest international airport in
the world. This situation had pressurised the management to come out with a solution for
quite some time as the number of passengers keep growing every year. Hence, on 2013,
Malaysia Airport had decided to build another airport known as Kuala Lumpur International
Airport 2 (KLIA2) and had started their operation on 2 May 2014. This new terminal is
designed with flexibility to assist future difference of low-cost carrier models as well as the
number of passenger capacitys growth up to 45 million passengers.

10.2. CHANGI AIRPORT

10.2.1. Programmed Decision

10.2.1.1. Check-in peak hour

Check-in and baggage drop counters in Changi airport opens up to forty-five minutes
before the flight and most customers would prefer to go at the very last minute for their
check-ins. This becomes a problem when there are various flights boarding around the
same time, not to mention tourist groups that checks in at one go and when there is
insufficient active check-in counters at that moment. This will make the queue
infuriatingly long and it might also cause some customers to miss their flight for the last
minute ones.

Hence, Changi airport staffs will do a queue check and make use of the self-service
check-in kiosk allocated not far from the check-in counters. The responsible staffs will
select customers that do not require baggage drops and politely guide them to the self-
service check-in kiosk to patiently help the customers do a quick check-in. This has
proven to be very effective for situations mentioned and especially when the check-in
counters malfunction (Future Ready 2012, p.48).

10.2.1.2. Weather issue

Weather issues may occur under predictable situations as well as unpredictable situations.
And this poses as an inconvenience to both the airport and the customers. Unfavourable

Page | 20
 weather such as presence of thunderstorms, large scale of invisibility in the sky, or strong
wind levels are weathers that prompt the delay of flights for the safety of passengers
(Kulesa 2009, P.2).

Therefore, Changi airport will initiate actions to inform the affected customers regarding
the delay, early if possible, keeping them frequently updated regarding the situation. The
information on flight delay will be available on their webpage, announced on speakers
throughout the airport terminals, and customers will be contacted via email or text
message (Future Ready 2012, p.48).

10.2.2. Policy

10.2.2.1. Baggage allowance policy

This policy is reinforced in Changi airport as a guideline for baggage size limitations for
passengers boarding flights via the airport. In regards to the policy, all checked-in items
should not exceed 200cm x 75cm x 80cm in dimension, and that extra charges may apply
if the baggage dimensions exceeds the allowance limit according the itineraries of
respective passengers (Singapore Airlines 2015).

10.2.2.2. Environment policy

This policy is available to employees of the Changi airport, demonstrating their
commitment to carry out activities with concern to the environment, reducing impacts of
pollution to the community to maintain a sustainable environment (Future Ready 2012,
p.67).

10.2.2.3. Privacy Policy

This policy displays how Changi Airport collects the personal data of each customer, how
they use the customers personal data, and how they disclose their entire customers
personal data, as well as how they secure their customers data. This policy mentions the
potential use of cookies to improve customer relations so that they are able to monitor and
customise the customers future visits. This policy is done and reinforced to gain
customers trust and keeping their data private and at the mean time provide a little
customer relations enhancements (Changi Airport Group 2015).

10.2.3. Procedure
Changi airport, like any other airports, have their proper management procedures that
customers and employees must abide.

10.2.3.1. Arrival Procedure

The arrival procedure acts as a guideline to passengers that have arrived at the airport,
mainly broken down into immigration and customs which is inclusive of visa checks,
immigration procedures, automated clearance systems, duty goods, and prohibited or
controlled items checking, baggage services to claim checked- in baggage once
immigrations and customs are cleared, and last but not least, arrival services to be
provided throughout the airport.

10.2.3.2. Departing Procedure

The departing procedure serves as a checklist for passengers of the Changi airport about
the depart Singapore. This procedure includes a pre-flight check highlighting check-in

Page | 21
 procedures, and then followed by baggage drop if any required (Changi Airport Group
2015).

10.2.3.3. Transit Procedure

This procedure is a guideline for passengers having a transit via Changi airport. The
procedure is helpful to worried passengers with baggage check-in problems and
passengers with inquiries on how to transit in the airport (Changi Airport Group 2015).

10.2.3.4. Special Assistance Procedure

This procedure abides to the elderly and handicapped passengers in the Changi airport.
This procedure highlights special wheelchair services, giving locations and physical aid if
needed, together with medical services, providing the locations of clinics and pharmacies
in the airport itself (Changi Airport Group 2015).

10.2.4. Non-Programmed Decision

On the 11th October 2015, a Singapore airbus had collapsed in the Changi airport flight pad
while landing gear system check was on-going. Fortunately there were no passengers on the
airbus but one engineer was present in the airbus and did not get hurt.

A case like this has never before surfaced in the history of Changi airport management and
hence this called for a one-time decision for their ultimate problems at hand. The pressuring
situation faced at that moment was a delay in flight of the passengers that were about to board
the plane off to elsewhere. Hence, the management of Changi airport had scheduled for
another flight using another airbus to take the place of the damaged airbus (KOK 2015).

11. Decision Making

In this part of report, the decision styles of Changi Airport and Kuala Lumpur International Airport
are discussed based on their decisions made. The incorrectness or correctness of the decisions are
distinguished and considered from their effects or impact on the airports. Basically, there are two
types of decision making styles, linear thinking style and non-linear thinking style. Linear thinking
style is defined as a persons preference for using external data and facts; a method of processing
information through rational and logical thinking. In other hands, non-linear thinking is described as
a persons preference for internal sources of information; a habit of processing information with
internal insights, feelings and hunches.

11.1. KLIA

11.1.1. Right decision

11.1.1.1. Linear thinking style

The decision was made that the landing fees would be reduced by half for two years in
2009. This logical thinking decision allowed KLIA to compete and challenge both
regional and broader airports. This was the decision that attracted many airlines, because
it offered common facilities and services, such as landing charges and security in low
cost. This is considered a linear thinking style and right decision as it is logical. It
impacted the airport a lot by bringing many new airlines.

Page | 22
 11.1.1.2. Non-Linear thinking style
KLIA has made much decision in non-linear thinking style which one of them is decision
to connect KL International Airport to KLIA transit train. These trains take passengers to
many stations, as KLIA2 or Kuala Lumpur Central in a low cost and in very convenient
way. It leaves a remembrance of a good experience in passengers memories and
satisfactoriness they felt while making journey from KLIA to Kuala Lumpur Central or
any other stations. It started operation in 2002.

Another good decision from KLIA was to create a website flyKLIA. This shows
KLIAs creativity. They lunched it in 2014. It offers all the latest airline, hotel and
getaway packages - and it goes deeper than just accommodation arrangements.

FlyKLIA has recently been awarded as the most satisfactory Airport Services provider of
Malaysia for the travellers at KLIA. Increasing number of travellers to the airport and
implementation of best services for all travellers at KLIA led to this result

11.1.2. Wrong decisions

11.1.2.1. Linear thinking style

Even though it might sound logical to offer the service to every passenger, however it was
a huge mistake from KLIA management to let in a drunken person to aircraft. The person
caused much disturbance in the air that made flight commander to return the plane in
order to ensure the safety and comfort of those inboard. According to the statement, the
disruptive passenger was handed over to the authorities upon arrival at the KLIA.

11.1.2.2. Non-linear thinking style

Nothing could undo the shameful mess and chaos at the KLIA, especially on the first day
of operations on Tuesday, 30th June 1998, when aircrafts were kept in a holding pattern
circling KLIA for up to an hour before being allowed to land. Moreover, passengers were
locked in the airplanes for up to three hours. The cause of it was the breakdown of the
aerobridge and aircraft bay allocation systems. The luggages were late for up to five
hours, and queues of up to 30 minutes just to buy a ticket for a taxi!

The reason for all of this disaster was the opening and official operations of KLIA were
rushed while it was not ready yet. This decision was made just because they wanted to
score the cheap and irrelevant point of being one week ahead of the official opening and
operations of the new Chel Lap Kok International Airport in Hong Kong. As a result, the
RM700 million worth Total Airport Management System (TAMS), the first of its kind in
the world and to be the brain and darling of the airport of the next century, ended up as a
Total Airport Mess System. This decision of opening a week ahead was one of the biggest
mistakes KLIA made ever.

11.2. CHANGI AIRPORT

11.2.1. Right Decision

Most of the airports will encounter problems when they implanted a new project. Changi
airport also encountered problems but they made the right decision. This is one of the reason
making Changi airport one of main hub aviation in Asia. Most of the passengers will check-in
at last minute and this will make some of them will miss the flight due to the check-in peak
hour. Hence, the Changi airport staffs will guide the passengers without baggage to do quick

Page | 23
 check-in and this is very effective. When the weather occurred different to forecast or
unpredictable weather causing the flight delay, Changi airport started to inform the affected
passengers and update the flight schedule and weather conditions frequently so the passengers
will be able to follow up the latest situation (Future Ready 2012, p.48).

11.2.2. Wrong Decision

According to CAPA 2012, due to the construction of third runway, Changi airport decided to
close down the Budget Terminal six years after it opened which in September 2012. This
action would be their one of wrong decisions with a decreased total handling capability by
10%. Changi airport can handle about 73 million passengers per year. Without Budget
Terminal, the capacity dropped by 7 million passengers per year which is 66 million.
Although the replacement of Terminal 4 is designed to handle 16 million passengers per year,
increasing the total capacity to 82 million passengers in 2017, Changi airport had to take the
risk of capacity shortfall and the huge loss of passengers about 4 years.

12. Recommendations
Kuala Lumpur International Airport and Singapore Changi Airport are the well-known airports
around the world. Despite their reputations and satisfactory infrastructures of the airports, they do
have rooms to improve their weaknesses.

A simple recommendation suggested for KLIA is to focus more on customer services. The
infrastructures itself will not satisfy customers, customers will be satisfied by efficient responding
customer service. In other words, save customers precious time and get whatever they asked for, this
will further improve the reputation across the world. Therefore, with the improvement of customer
services, there will be more customers and with the profit, KLIA can improve its infrastructure and
technology.

Changi Airport has scored the best airport in the world, a perfect airport. In fact, there is
imperfection in its perfection, which is density of itself. KLIA and KLIA 2 can handle 70 million
passengers per annual with 737,249 m2 while Changi Airport with 3 terminals combine can handle 66
million passengers per annual with 1,046,000 m2. With the size of the Changi Airport, it should
handle roughly 100 million passengers per annual. With this improvement, Changi Airport surely will
be the busiest airport in the world.

13. Conclusion
Both of airport have their cons and pros and they are similar in some ways but differ in others.
However, if to pay closer attention to their managerial characteristics it can be agreed that Changi is
better. Changi is nominated as the best airport in the world by passengers. Changi also managed to
keep up in the race with competitors whereas KLIA failed in that regard. Moreover, KLIA had
security and safety issues which are one of the important concerns of travellers. KLIA had technical
problems, too, like slow baggage collection which left passengers unsatisfied. Nevertheless, both
airports have similar problems which they are unable solve. It is weather problems that lead to flight
delays. Adding on to the problems, arrivals control is one of the main issues in KLIA. KLIA had
longest queues since 2004.Even though they tried to solve it by building KLIA2, yet they still have it.
But Changi deals with problems in this regard better. In other hands, KLIA has made great decisions
such as making transit procedure easier for travellers. In dealing with environmental impact matters
KLIA overcomes it in better ways than Changi. KLIAs buildings are environmental-friendly. In the

Page | 24
end can be said that both airports are top world airports with the best managerial teams. Yet, Changi
goes in front by making non-linear thinking decisions, and being located in better location.

Page | 25
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Case of Singapores Changi Airport, Available at: http://www.egl.nus.edu.sg/Portals/8/downloads/IUS_Feb09-
Changi_Exec_Summ.pdf (Accessed: 28th September 2015).
PUB 2015, NEWater Technology, PUB, viewed 24 September 2015,
<http://www.pub.gov.sg/water/newater/newatertech/Pages/default.aspx >.

Ranasinghe, D 2014, Technology the backbone of worlds best airport, CNBC, 30 March, viewed 30
September 2015, <http://www.cnbc.com/2014/03/28/technology-the-backbone-of-worlds-best-airport.html>.

Ruckus, One of World's Largest Airports Takes Off With Smarter Wi-Fi Across Massive Indoor/Outdoor
Facility, Ruckus Wireless, viewed 20 October 2015, <http://www.ruckuswireless.com/press/releases/20110613-
kuala-lumpur-international-airport>.

iv
Singapore Airlines 2014, Sustainability Report, Singapore Airlines, viewed 26 September 2015,
<https://www.singaporeair.com/pdf/Investor-Relations/Annual-Report/sustainabilityreport1415.pdf>.

Singapore Airlines 2015, Allowances, viewed 23 November 2015, <http://www.singaporeair.com/en_UK/travel-

information/baggage-allowances/>.

Skytrax 2015, Changi Airport Group.com, viewed 25 September 2015,

<http://www.changiairportgroup.com/export/sites/caas/assets/media_release_2015/Media-Release-Changi-
voted-worlds-best-airport.pdf>.

Syazwani Sahrir, Ummi Aqilah Khalid, Zulfadly Azizi Bohari, Syahriah Bachok, Mariana Mohamed Osman
2012, Airport Expansion: The Malaysian Experience of KLIA2, viewed 28 September 2015,
<http://irep.iium.edu.my/29020/1/Airport_Expansion_The_Malaysian_Experience_of_KLIA2.pdf>.

Tan, BM 2004, Singapore Changi Airport, Infoprdia, viewed on 20 September 2015,

<http://eresources.nlb.gov.sg/infopedia/articles/SIP_574_2004-12-23.html>.

The Star 2015, Malaysia Airports records 83.3m passenger movements in 2014, The Star Online, viewed 22
October 2015, <http://www.thestar.com.my/Business/Business-News/2015/01/12/Malaysia-Airports-records-
passenger-movements-in-2014/?style=biz>.

Toh, CS 2015, CAG should consider next moves carefully, The Straits Time, viewed 23 October 2015,
<http://www.straitstimes.com/forum/letters-in-print/cag-should-consider-next-moves-carefully>.

Tong Y.S & Yap M.C 2003, Travel trade tackles impact of SARS, Malasia Kini, 4 April, viewed 24 October
2015, <http://www.malaysiakini.com/news/15038>.

TTG Asia 2009, 'KLIA set to be a stronger regional hub', viewed 20 October 2015,
<http://ttgasia.com/article.php?article_id=16852>.

Unido.org, 2015, 'What is CSR?', viewed 29 September, 2015, <http://www.unido.org/en/what-we-

do/trade/csr/what-is-csr.html>.

v
Appendix
Comparison and contrast between KLIA and CHANGI AIRPORT
Environmental Issue
CHANGI AIRPORT KLIA
Similarities
Strong culture of people and employee oriented.
Performances of both organisations are influenced by customers, competitors, and political
and legal factors.

Sustainability
CHANGI AIRPORT KLIA
Similarities
Both are environmental conscious.
Both have sustainable operation management.
Environment-friendly design.

Ethical Issue
CHANGI AIRPORT KLIA
Similarities
Pay attention to environmental issues.
Differences
Strong management. Poor management.
Strong labour issues. Poor labour issues.

Social Responsibility
CHANGI AIRPORT KLIA
Similarities
Focuses on issues related with the environment, education and community.
Differences
Establish a specific foundation for the aid Establishes different and distinct programmed
of society development. for responsibilities on each development.

SWOT Analysis

Strengths
KLIA Changi Airport
Differences
Frequent technology development as part of Strong global presence as the best airport in the
Malaysias Multimedia Super Corridor (MSC) world.
project.
Culture friendly environment for all races, listed Strategic geographical location. Located in Asia,
best Muslim airport. which has a growing economic trend.

I
 Similarities
Environmentally friendly-design and carry out sustainable operations

Weaknesses
KLIA
Poor location which is too far from the city and
requires too much time and energy.
Poor management and poor maintenance
resulting in complaints from passengers.
Changi Airport
High maintenance required yearly for the airport
despite unstable country economy, leading to the
questioning of its necessity by citizens.
Demolishing the low-cost carrier terminal caused
short term overcapacity and was a result of poor
planning.

Opportunities
KLIA Changi Airport
Similarities
Growth of airline industry
Growth of tourism

Threats
KLIA Changi Airport
Differences
Couldnt keep up with the rise of competition. Outbreak of MERS and SARS in Asia terrified
the passengers and citizens.
Safety and security threats caused a great loss to Unstable economy trend caused a drop in cargo
the airport in terms of passenger movement. volume.

Porters Five-Forces Analysis

Threat of New Entrants
Threat of Substitutes
Bargaining Power of Buyers
KLIA Changi Airport
The new entrant competitor KLIA 2 is not a threat to Changi
within Malaysia, KLIA 2. KLIA Airport. Changi Airport
2 holds 45 million passengers constantly improve and
per year while KLIA holds 25 updating itself. Singapore
million passengers per year. government is constructing new
Local passengers choose low terminals.
cost airlines at KLIA 2 and
KLIA 2 has better
infrastructure.
Similarity
In South East Asia, passengers who wants to travel across the sea,
required airplanes. Therefore, the threat of substitutes is valid to
KLIA and Changi Airport.
KLIA and Changi Airports buyers are airlines. Airports collect
charges from passengers. The more the airlines, the more the
customers. Singapore is a small country, the way Changi Airport
earns their fames through services and upgrading to attract more
international airlines around the world to join them while KLIA
has constant buyers from domestic flight.

II
Bargaining Power of KLIA and Changi Airports suppliers are provided by respective
Suppliers government. They need to manage with the different suppliers to
meet their airports conditions.
Intensity of Rivalry The competition between KLIA and Changi Airport at South East
Asia to be the crossroads between Asia-Pacific and Europe as
regional hub.
Other competitor such as HKIA wants to take over the Asia
regional hub.
The strongest competitor is Dubai International Airport, Dubai
shift Qantass hub from Changi Airport to Dubai International
Airport. Dubai also plans to become the multi continental hub.

Structured Problems
KLIA Changi Airport
Technical Problems Slow baggage collection The upcoming third runway
problem. problem. A minor accident
happened on the runway, will
Aerotrains broke down and the cause flight delay.
alternate solution did not satisfy
passengers.
Passengers Similarity
Flight delays caused passengers unhappy at both respective
airports.

Unstructured Problems
KLIA Changi Airport
Weather Similarity
Current bad weather condition, haze, forces flight to cancel or
delay due to poor visibility.
Heavy rain also will delay the flight to take off or upon arrival to
respective airports.
Diseases SARS virus was a huge impact to KLIA and Changi Airport.
H1N1 also affect KLIA and Changi Airports passenger traffic
result.

Decisions
KLIA
Arrival Procedure Aero train brings you to Gate 5
of the main terminal whereas
the other flights arrive at
Domestic terminal. In the
immigration part, passengers
should have a legal passport.
For the customs part, visitors
are allowed to bring a carton to
cigarettes, one litre of liquor
Changi
Passengers that have arrived at
the airport, mainly broken down
into immigration and customs
which is inclusive of visa
checks, immigration
procedures, automated
clearance systems, duty goods,
and prohibited or controlled
items checking, baggage

III

Departure Procedure
Transit Procedure
Special Assistance Procedure
Baggage Policy
Environment Policy
Privacy Policy
and personal possession but
narcotics, pornography and
firearms are prohibited.
Baggage reclaim is after
immigration and customs
checking is done.
Check in procedure is done
including baggage drop,
passengers then move to
passport checking then to
immigration checking.
Passengers are not required to
undergo any formalities. As
soon the passengers disembark
from the plane they will be
given a plastic transit card. As
for the baggage, it can be
transferred automatically to
their connecting flight at the
Transfer counter
Provide various ways to help
their disabled guests. Their
entire terminal offers ramps,
elevators, restrooms, public
phone and other facilities that
are easily accessible.
Offers 20kg allowance where
excess luggages are charged if
the passengers baggage
exceeds the weight. Over-sized
luggages are checked in at the
counter identified for this
purpose
Leads other airports around the
globe in championing
environmental preservation
efforts when its Project Green
Planet (PGP). As the global
warming issue is becoming hot
around the world, KLIA's effort
to promote conservation and
protection of the environment
Handles information in Displays how Changi Airport
IV
services to claim checked- in
baggage once immigrations and
customs are cleared, and last but
not least, arrival services
Includes a pre-flight check
highlighting check-in
procedures, and then followed
by baggage drop if any
required.
Helpful to worried passengers
with baggage check-in
problems and passengers with
inquiries on how to transit in the
airport.
Abides to the elderly and
handicapped passengers in the
Changi airport. This procedure
highlights special wheelchair
services, giving locations and
physical aid if needed, together
with medical services,
providing the locations of
clinics and pharmacies
all checked-in items should not
exceed 200cm x 75cm x 80cm
in dimension, and that extra
charges may apply if the
baggage dimensions exceeds
the allowance limit according
the itineraries of respective
passengers
Demonstrating their
commitment to carry out
activities with concern to the
environment, reducing impacts
of pollution to the community
to maintain a sustainable
environment.

Non Programmed Decision
Decision Making
Right Linear Thinking Style
Right Non-Linear Thinking
Style
Wrong Linear Thinking Style
Wrong Non-Linear Thinking
Style
accordance with the Personal
Data Protection Act 2010 and
the laws of Malaysia. In the
policy it explains the type of
personal information collected,
the way of the information is
collected and how is it used.
Also correcting and accessing
personal information.
Queues issue in Kuala Lumpur
International Airport (KLIA)
had been facing this problem
since 2004, in which the
passengers numbers eventually
increased to 21.1 million and as
the result, queues been built up
throughout the airport. Hence,
on 2013, Malaysia Airport had
decided to build another airport
known as Kuala Lumpur
International Airport 2 (KLIA2)
and had started their operation
on 2 May 2014.
KLIA
Reduction of landing fees
Decision of creating a website
flyKLIA; it attracted a lot of
customers and brought KLIA
rewards
Decision of opening and
operating the Airport a week
ahead
Lack of preparation of opening
and official operation
V
collects the personal data of
each customer, how they use the
customers personal data, and
how they disclose their entire
customers personal data, as
well as how they secure their
customers data. This policy
mentions the potential use of
cookies to improve customer
relations so that they are able to
monitor and customise the
customers future visits
Singapore airbus had collapsed
in the Changi airport flight pad
while landing gear system
check was on-going pressuring
situation faced at that moment
was a delay in flight of the
passengers. Hence, the
management of Changi airport
had scheduled for another flight
using another airbus to take the
place of the damaged airbus
(KOK 2015).
Changi Airport
Assistance of airport staff for
quick check-in
Quick action to manage sudden
changes
Decision of the closing of
Budget Terminal
 MEETING MINUTE 1
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 9 September 2015

Meeting Time: 1.30p.m.
Meeting Location: Hornbill Discussion Room, Swinburne Sarawak Library
Minutes Taken By: Lim Yung Shen
Meeting Ended: 3.30p.m.

Meeting Attendees:
1. Lim Yung Shen
2. Angela Go
3. Maruf
4. Farah
5. Hari Prakash
6. Eric Ting

Meeting Purpose/Discussion:

1. To finalize topic chosen for the research report.

2. To produce a Gantt chart for the scheduled progress of the assignment.
3. To produce the presentation slides.
4. To choose our representative speaker.

Action Items:
No. Action/Discussion Who
1. Research on relevant information Maruf,
Farah, Eric
Ting, Hari
Prakash
2. Producing Gantt chart Angela Go
3. Producing presentation slides and presentation script Angela Go,
Hari
Prakash
4.
5.
6.
7.
8.

VI
 MEETING MINUTE 2
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 16 September 2015

Meeting Time: 2:30 p.m.
Meeting Location: A block open lab
Minutes Taken By: Lim Yung Shen
Meeting Ended: 4:00 p.m.

Meeting Attendees:
7. Lim Yung Shen
8. Angela Go
9. Maruf
10. Farah
11. Hari Prakash
12. Eric Ting

Meeting Purpose/Discussion:
1. Distribute the tasks to each of members.
2. Discuss about our group mind map topic.

Action Items:
No. Action/Discussion Who
1. Find relevant references for Background and Eric Ting
Environmental Factor
2. Find relevant references for PEST and Sustainability Angela Go
3. Find relevant references for Ethical Issues and Social Hari
Responsibilities Prakash
4. Find relevant references for Strategic Analysis and Lim Yung
Problem Faced Shen
5. Find relevant references for Decisions Farah
6. Find relevant references for Decision Making Maruf
7.
8.

VII
 MEETING MINUTE 3
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 23 September 2015

Meeting Time: 1:30 p.m.
Meeting Location: Hornbill Discussion Room, Swinburne Sarawak Library
Minutes Taken By: Lim Yung Shen
Meeting Ended: 3:00 p.m.

Meeting Attendees:
13. Lim Yung Shen
14. Angela Go
15. Maruf
16. Farah
17. Eric Ting

Meeting Purpose/Discussion:
3. Distribute task to each of every group member.
4. Discuss about drafting for group task 2.

Action Items:
No. Action/Discussion Who
1. Research and draft about background and Eric Ting &
environmental factors Maruf
2. Research and draft about Sustainability Angela Go
& Lim Yung
Shen
3. Research about Ethical Issues and Social Responsibility Hari
Prakash &
Farah
4.
5.
6.
7.
8.

VIII
 MEETING MINUTE 4
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 7 October 2015

Meeting Time: 1:30 p.m.
Meeting Location: Open Lab, Block A, Swinburne
Minutes Taken By: Lim Yung Shen
Meeting Ended: 2:30 p.m.

Meeting Attendees:
18. Lim Yung Shen
19. Angela Go
20. Maruf
21. Farah
22. Eric Ting
23. Hari Prakash

Meeting Purpose/Discussion:
5. Distribute task to each of every group member.
6. Discuss about drafting for group task 3.
7. Discuss about mind-mapping on our respective topic.

Action Items:
No. Action/Discussion Who
1. Research and draft about SWOT, Porters Five-Force Angela Go
and Problems Faced & Lim Yung
Shen
2. Research and draft about Decisions and Decisions Eric, Maruf ,
Making Hari
Prakash &
Farah
3. Construct mind map and upload in our group chat Everyone
4.
5.
6.
7.
8.

IX
 MEETING MINUTE 5
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 21 October 2015

Meeting Time: 1:30 p.m.
Meeting Location: Swinburne Sarawak Library
Minutes Taken By: Lim Yung Shen
Meeting Ended: 2:00 p.m.

Meeting Attendees:
24. Lim Yung Shen
25. Angela Go
26. Maruf
27. Farah
28. Eric Ting
29. Hari Prakash

Meeting Purpose/Discussion:
8. Vote and pick one of the members mind maps.
9. Discuss and improve the selected mind map.
10. Update about group task 3 progress.

Action Items:
No. Action/Discussion Who
1. Pick Marufs mind map. Angela Go,
Eric Ting,
Hari
Prakash,
Farah
2. Improve selected mind map Maruf
3.
4.
5.
6.
7.
8.

X
 MEETING MINUTE 6
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 27 October 2015

Meeting Time: 1:30 p.m.
Meeting Location: Swinburne Sarawak Library IT Section.
Minutes Taken By: Lim Yung Shen
Meeting Ended: 3:00 p.m.

Meeting Attendees:
30. Lim Yung Shen
31. Angela Go
32. Maruf
33. Farah
34. Eric Ting
35. Hari Prakash

Meeting Purpose/Discussion:
1. Compile Group Task 3

Action Items:
No. Action/Discussion Who
1. Check our grammars of our distributed work. Everyone
2. Compile everything together Lim Yung
Shen
3. Double check our Group Task 3 Everyone
4.
5.
6.
7.
8.

XI
 MEETING MINUTE 7
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 4 November 2015

Meeting Time: 1:30 p.m.
Meeting Location: Hornbill Discussion Room, Swinburne Sarawak Library
Minutes Taken By: Lim Yung Shen
Meeting Ended: 3:00 p.m.

Meeting Attendees:
36. Lim Yung Shen
37. Angela Go
38. Maruf
39. Farah
40. Eric Ting
41. Hari Prakash

Meeting Purpose/Discussion:
2. Distribute final tasks before compile everything.

Action Items:
No. Action/Discussion Who
1. Prepare Introduction & Executive Summary Eric Ting
2. Prepare Acknowledgement & Purpose Lim Yung Shen
3. Scope & Methodology Farah
4. Significant Findings & Benefits of The Study Hari Prakash
5. Recommendations Angela Go
6. Conclusion Maruf
7.
8.

XII
 MEETING MINUTE 8
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 11 November 2015

Meeting Time: 1:30 p.m.
Meeting Location: Hornbill Discussion Room, Swinburne Sarawak Library
Minutes Taken By: Lim Yung Shen
Meeting Ended: 3:00 p.m.

Meeting Attendees:
1. Lim Yung Shen
2. Angela Go
3. Maruf
4. Farah
5. Eric Ting
6. Hari Prakash

Meeting Purpose/Discussion:
1. Prepare our presentation slides.
2. Arrange the sequent for every member during presentation.

Action Items:
No. Action/Discussion Who
1. Prepare our slides based on our selections. Everyone
2.
3.
4.
5.
6.
7.
8.

XIII
 MEETING MINUTE 9
MME30001 Engineering Management 1

Research Group Project (Group 22)

Topic: KLIA vs Singapore Changi Airport

Meeting Date: 18 November 2015

Meeting Time: 1:30 p.m.
Meeting Location: Hornbill Discussion Room, Swinburne Sarawak Library
Minutes Taken By: Lim Yung Shen
Meeting Ended: 3:00 p.m.

Meeting Attendees:
1. Lim Yung Shen
2. Angela Go
3. Maruf
4. Farah
5. Eric Ting
6. Hari Prakash

Meeting Purpose/Discussion:
1. Compile the slides.
2. Rehearse for our presentation.

Action Items:
No. Action/Discussion Who
1. Rehearse for our presentation Everyone
2.
3.
4.
5.
6.
7.
8.

XIV