Sustainability Report 2012/13 - Singapore Airlines

Sustainability Report 2012/13

overview

CONTENTS

CEO’s Message ..................................................... 2

This Sustainability Report is published to provide stakeholders of Singapore Airlines with information about our sustainability performance in a

Reporting Period

transparent and accountable manner,

This report covers the Financial

covering areas including governance,

Year 2012/13 from 1 April 2012

Route Network ........................................................................................... 8

stakeholder engagement, community

to 31 March 2013.

Fleet Information ...................................................................................... 10

projects and the environment.

About Singapore Airlines ....................... 4 Corporate Governance ............................................................................. 13

Through this report, we also hope to

Focus on people ............................................. 16

identify opportunities for improvements to our sustainability management,

Stakeholder Engagement: Employees ........................................................ 18

as well as issues that are material

Stakeholder Engagement: Customers ....................................................... 24

to our business in order to address

Stakeholder Engagement: Partners ........................................................... 33

them effectively and appropriately.

Reporting Scope Information and figures in this report refer to the Parent Airline, excluding subsidiaries in the Singapore Airlines Group, unless otherwise stated. The ‘$’ sign used in this

Supporting our communities .......... 38 Community Engagement .......................................................................... 40

Data collection process Information for this report is collected from various departments and overseas offices. The general approach is for data owners to confirm the accuracy of their data through documentary evidence or past operational performance. We aim to improve on this process continually to ensure that our data collection is effective and robust.

report refers to Singapore Dollars unless otherwise stated.

Community Projects Around the World .................................................... 43

Caring for the Environment ........... 48 Managing our Environmental Impact ........................................................ 50

More information about Singapore Airlines Limited is available through our website at:

Environmental Responsibility .................................................................... 53

http://www.singaporeair.com/en_UK/about-us/ir-landing/

Commitment Towards a Sustainable Future .............................................. 57

as well as in our Annual Report, which can be viewed or downloaded at: http://www.singaporeair.com/jsp/cms/en_UK/global_header/annualreport.jsp

CEO MESSAGE “We determined that the time was right to expand the scope of the Environment Report to provide a wider range of information on our efforts that contribute towards making our operations more sustainable.”

This year marks the first time Singapore

gauge how listed companies approach

environmental initiatives; community

Airlines has produced a comprehensive

environmental, social and governance

projects; governance; engagement

Sustainability Report, detailing a wide

issues. SGX has also published a Guide

with customers, employees and

range of initiatives and practices

to Sustainability Reporting for Listed

partners; and more.

related to non-financial aspects of our

Companies, stating that it considers

operations. This important step forward

sustainability reporting to be an

We are pleased to be sharing this

is consistent with our longstanding

important aspect of holistic disclosure

information in a detailed manner

efforts to be constantly developing

by listed companies. We agree, and

for the first time, and sincerely hope

as a responsible corporate citizen.

are therefore pleased to be among

you enjoy reading about our initiatives

the early adopters in Singapore with

and practices in the pages ahead.

Reporting sustainability practices is not

a comprehensive Sustainability Report.

entirely new to us, as we had been producing an annual Environment

As part of our ongoing development,

GOH CHOON PHONG

Report since the 2001/02 financial

we have for the first time produced

Chief Executive Officer

year. For many years we have also been

a Suppliers’ Code of Conduct which

Singapore Airlines

including selected information about

we expect all our suppliers to adhere

sustainability practices in our Annual

to. Based on the principles of the

Report to shareholders. This year,

United Nations Global Compact with

however, we determined that the time

respect to Human Rights, Labour, the

was right to expand the scope of the

Environment and Anti-Corruption, the

Environment Report to provide a wider

Code’s contents were developed to be

range of information on our efforts

consistent with our business values.

that contribute towards making our

More information can be found in

operations more sustainable.

the section - Stakeholder Engagement: Partners.

It has proven to be a timely endeavour, as the Singapore Exchange recently

Also in this report, you will find details

announced that it may establish a

of many sustainable practices in our

Sustainability Index for investors to

day to day operations, encompassing

SUSTAINABILITY REPORT 2012/13

3

ABOUT SINGAPORE AIRLINES Singapore Airlines has come a long way since our founding in 1972. Now an internationally-respected brand, we have become one of the world’s leading carriers with an advanced fleet of aircraft.

MISSION STATEMENT

VALUES

Singapore Airlines is a global company dedicated to providing air transportation services of the highest quality and to maximising returns for the benefit of its shareholders and employees.

We hold firm to our six Core Values, which we strongly believe are key to the SIA mission:

With one of the world’s youngest

Our ever-growing list of industry-

fleets in the air, a network spanning

leading innovations includes the

panel of world-renowned chefs,

six continents, and the Singapore Girl

following firsts:

the International Culinary Panel, in

as an iconic symbol of quality customer

First to involve a comprehensive

developing in-flight meals, in 1998.

care and service, we have earned a

First to offer free headsets,

reputation as an innovative market

a choice of meals and free

leader, combining quality products

drinks in Economy Class,

(AVOD) capabilities on KrisWorld in all

with excellent service.

in the 1970s.

classes, in October 2001.

We have made a habit of leading the

First to introduce satellite-based

way, and along the way developed a

in-flight telephones, in 1991.

reputation as an industry trendsetter.

First to offer audio and video on demand

First to fly the A380, from Singapore to Sydney, on 25 October 2007.

PURSUIT OF EXCELLENCE

CONCERN FOR STAFF

We strive for the highest professional

We value our staff and care for

standards in our work and aim to be

their well-being. We treat them

the best in everything we do.

with respect and dignity and seek to provide them with appropriate

SAFETY We regard safety as an essential part

training and development so that they can lead fulfilling careers.

of all our operations. We maintain and adopt practices that promote the safety of our customers and staff.

INTEGRITY We strive for fairness in all our business and working relationships.

CUSTOMER FIRST Our customers are foremost in our

TEAMWORK

minds all the time. We go the extra

We work with pride as a worldwide

mile to exceed their expectations.

team to achieve success together.

Historical Timeline of SIA

april May

KrisWorld, Singapore

March

Airlines’ advanced in-flight

MAL, which was renamed

entertainment system, is

Malaysian Airways Limited in 1963,

Singapore Airlines launches

launched across all classes.

becomes Malaysia-Singapore

three-times-weekly flights to

Airlines (MSA).

Sao Paulo, its first South

July

February

MSA’s first

Singapore Airlines moves to

Singapore Airlines inaugurates

transcontinental flight

the new Singapore Changi

the world’s longest non-stop

on a Boeing 707 takes

Airport from Paya Lebar.

commercial flights between Singapore and the US.

off for London.

1947 1966

1968 1971 French couturier Pierre Balmain designs the sarong kebaya uniform for MSA air stewardesses.

American destination.

June

1972 1981

1989 1995

1999 2004

2007 2011

2013

MSA splits

Singapore Airlines becomes the first

The KrisFlyer

Singapore Airlines is the first

Today, Singapore

into Singapore

airline to operate a Boeing 747-400

programme is launched,

airline to operate the Airbus

Airlines flies to over 100

Airlines

commercial flight across the Pacific.

allowing First, Business

A380 superjumbo, the largest

destinations in nearly 40

(SIA) and

and Economy Class

passenger plane in the world.

countries, including services

Malaysian

customers to earn

by Singapore Airlines Cargo

Airline System

mileage credits.

and SilkAir.

(MAS). The Singapore Girl

MAY

is born.

The maiden flight of Malayan Airways Limited (MAL), operated by an Airspeed Consul, takes off from Singapore Kallang Airport.

6

SINGAPORE AIRLINES


7

SILKAIR ROUTES

Route Network

Chongqing Wuhan Changsha Xiamen Kunming Kathmandu Shenzhen Kolkata Hanoi Chiang Mai Visakhapatnam Danang Yangon Hyderabad Chengdu

Bangalore Chennai

Siem Reap

Coimbatore Kochi Thiruvananthapuram

Koh Samui Phuket Langkawi Penang Medan Kuala Lumpur

To Ne

w Yo

Copenhagen Manchester

Frankfurt

Paris Zurich

ASIA

Chicago

Rome

Istanbul

Seoul Nagoya Tokyo Narita Osaka Tokyo Haneda Fukuoka

Nanjing

Cairo Riyadh Jeddah

Sharjah Dubai

Ahmedabad Mumbai Bangalore

AFRICA

Los Angeles

Dhaka Kolkata

Guangzhou Hanoi

Xiamen

PACIFIC OCEAN

Bandar Seri Begawan

SOUTH AMERICA

SINGAPORE Jakarta

Denpasar

INDIAN OCEAN

To Barcelona

Sao Paulo

Johannesburg

Cape Town

AUSTRALIA Perth

Adelaide

Brisbane

Sydney Auckland

Melbourne

Singapore Airlines has 101 aircraft in its fleet. As at 31 March 2013, the average age of its aircraft is six years and eight months, while the average age of its regional subsidiary SilkAir’s aircraft is also six years and eight months. Both airlines’ fleets are amongst the youngest and most fuel-efficient in the world.

Atlanta

ATLANTIC OCEAN

Taipei

Ho Chi Minh City

Nairobi

Dallas-Fort Worth

Manila

Bangkok

Colombo Kuala Lumpur Male

Lagos

To Moscow

Shanghai

Hong Kong

Yangon Chennai

To Frankfurt

New York JFK

Houston

Chongqing

New Delhi

New York Newark

San Francisco

Beijing

lo Pau

SINGAPORE AIRLINES

Lombok

NORTH AMERICA

EUROPE

Milan

8

Surabaya Solo

Darwin

Munich

Barcelona

Manado Balikpapan

Moscow

Amsterdam

London Brussels

To

Kuching

Bandung

rk JFK

Sao

Davao Kota Kinabalu

SINGAPORE Pekanbaru Palembang

To Houston

Cebu

Phnom Penh

Christchurch

CITIES SERVED BY SINGAPORE AIRLINES (PASSENGER AND CARGO) CITIES SERVED BY SILKAIR (PASSENGER) CITIES SERVED BY SINGAPORE AIRLINES CARGO (FREIGHTER SERVICE ONLY) The map is not drawn to scale and the lines do not indicate actual flight paths. For accurate information on flight schedules and routes, go to singaporeair.com.

Credit : © SPH Magazines Pte Ltd & Singapore Airlines Ltd


9

Fleet Information As At 31 March 2013

SINGAPORE AIRLINES PASSENGER FLEET

Average age of passenger fleet : 6 years 8 months.

Boeing 777-300R (retrofitted)

Airbus A380-800 In Fleet : 19 On Order : 5 In Fleet : 11

Cabin Configuration 1 First : 12 (Suites) Business : 60 Economy : 399 Total : 471

In Fleet : 8

Cabin Configuration 2 First : 12 (Suites) Business : 86 Economy : 311 Total : 409

Mr Sim Kok Chwee

In Fleet : 2

Mr Sim Kok Chwee

In Fleet : 5

Cabin Configuration Business : 100 Total : 100

In Fleet : 9

Cabin Configuration Business : 30 Economy : 255 Total : 285


Boeing 777-200R (retrofitted) In Fleet : 11

Airbus A330-300 In Fleet : 20 On Order : 14


Boeing 777-200ER Airbus A340-500

Cabin Configuration Business : 100 Total : 100

Cabin Configuration First : 8 Business : 50 Economy : 226 Total : 284

Boeing 777-200ER (retrofitted)

A340-500 In Fleet : 5

In Fleet : 7


Boeing 777-200

Airbus A350-900 XWB On Order : 40

In Fleet : 2


In Fleet : 7

Cabin Configuration 1 Business : 30 Economy : 293 Total : 323

Boeing 777 (total) In Fleet : 57 On Order : 8

Boeing 777-300ER In Fleet : 19 On Order : 8

10

SINGAPORE AIRLINES



11

Fleet Information (continued) SINGAPORE AIRLINES CARGO FREIGHTER FLEET

corporate Governance Average age of fleet : 11 years 8 months.

high standards of corporate governance, professionalism, integrity and commitment at all levels, underpinned by strong internal controls and risk management systems.

Boeing 747 - 400 Freighter In Fleet

The Singapore Airlines Board and Management are committed to continually enhancing shareholder value by maintaining

: 12

The Singapore Airlines Board consists of Chairman Mr Stephen Lee, CEO Mr Goh Choon Phong and eight directors from diverse backgrounds with varied expertise in finance, legal, industry, business, marketing and management fields. The Board’s principal functions include charting the Group’s strategic direction, reviewing and approving annual budgets and financial plans and monitoring the Group’s performance; approving major acquisitions and fund-raising exercises; and

Total: 12

reviewing the Group’s compliance with laws and regulations as may be relevant to the business.

SILKAIR FLEET

Average age of fleet : 6 years 8 months.

Airbus A320 (total) In Fleet : 16 On Order : 2 In Fleet : 12 On Order : 2


In Fleet : 4


Mr Stephen Lee Ching Yen

Chairman/ Non-executive

Mr Goh Choon Phong

Director and CEO/ Executive

Mr Gautam Banerjee

Independent/ Non-executive

Dr William Fung Kwok Lun


Ms Euleen Goh Yiu Kiang


Mr Hsieh Tsun-Yan


Mrs Christina Ong


Dr Helmut Gunter Wilhelm Panke


Mr Jackson Peter Tai


Mr Lucien Wong Yuen Kuai

Non-independent/ Non-executive

*Full profiles of Directors are available on pages 6 to 9 of the Annual Report.

Airbus A319 In Fleet : 6

The Board currently comprises the following members:


Boeing 737 (total)

Length of Service Directors are appointed for an initial term of three years, after which they are considered for re-nomination for another term(s). Their re-nominations are subject to the recommendations of the Chairman of the Board and the Nominating Committee. New Directors appointed in the year are subject to retirement and re-election by shareholders at the next Annual General Meeting after their appointment. All new appointments and re-elections require the approval of the Special Member, the Minister for Finance.

On Order : 54

Boeing 737-800 On Order : 23


Boeing 737 Max 8 On Order : 31

12

SINGAPORE AIRLINES



13

corporate Governance (continued) Board Committees

Internal Controls and Internal Audit

Five Board Committees have been formed to assist the Board in the execution of its responsibilities. They comprise members

SIA Internal Audit is an independent department that reports directly to the AC. It performs regular evaluations of the SIA

of the Board delegated with authority to carry out specific functions and duties.

Group’s internal controls, financial and accounting matters, compliance, business and financial risk management policies and procedures, and ensures that internal controls are adequate to meet the Group’s requirements. SIA Internal Audit is

Audit Committee (AC)

a member of the Singapore chapter of the Institute of Internal Auditors (IIA) and meets the Standards for the Professional

The purpose of the AC is to assist the Board of Directors in fulfilling its oversight responsibilities by reviewing:

Practice of Internal Auditing set by the IIA.

• Financial information disclosed to shareholders and regulatory authorities • The Group’s systems of internal controls - financial, operational, compliance and risk management

The Control Self Assessment (CSA) Programme established since financial year 2003-04 provides a framework for

• Internal and external audits, accounting and financial reporting process

Management to obtain assurance on the state of internal controls. The CSA Programme requires operating departments’ management to review and report annually on the adequacy of their respective units’ control environment. Internal Audit

Board Compensation and Industrial Relations Committee (BCIRC)

performs independent and random reviews during the year to validate the results of these self assessments.

The Board Compensation and Industrial Relations Committee assumes the role of a Remuneration Committee. It has oversight for the remuneration and benefits package for key executives of the Company, including their succession planning

Communication with Shareholders

and leadership development. The BCIRC also provides appropriate guidance to management of the company in its relations

Singapore Airlines believes in timely and consistent disclosure of pertinent information to enable a transparent assessment of

with unions, with the aim of providing a harmonious industrial relations climate.

the Company’s value. It values dialogue with shareholders. Analyst and media briefings are held when announcing half-yearly and year-end results, where senior management are present to field questions. At the Annual General Meeting and any

Executive Committee (ExCo)

Extraordinary General Meeting, the full Board is present to address questions and clarify issues by shareholders.

The ExCo oversees the execution by Management of the overall strategy, policies, directions and guidelines set by the Board for the SIA Group. It also reviews and makes recommendations to the Board on the annual operating and capital budgets

All financial results as well as price sensitive information are released in a timely manner through various media including

and matters relating to the Group’s wholly-owned subsidiaries. The ExCo is authorised to approve transactions beyond a

press releases posted on the Company’s website and disclosure via SGXNET. Quarterly results announcements, news releases,

designated materiality threshold and to make decisions on routine financial and operational matters. It also functions as the

presentation slides, transcripts for half-year and year-end results analyst and media briefings, monthly operating statistics,

Share Buy Back Committee of the Company.

annual reports, corporate data, shareholding information and information on shareholders’ meetings are available on the Investor Relations website: www.singaporeair.com/investor.

Nominating Committee (NC) The NC considers and makes recommendations to the Board on the appointment and re-election of Directors. It also

The Investor Relations department meets with analysts and investors on a regular basis, through investor conferences and

determines the independence of Directors. The NC’s recommendations are endorsed by the Board before they are brought

roadshows, as well as ad-hoc meetings and teleconferences. Lines of contact such as the investor relations email and hotline

before shareholders at the Annual General Meeting.

are also maintained for the investing community to reach out to the Company for queries.

Board Safety and Risk Committee (BSRC)

The Company’s commitment to corporate transparency and investor relations approach has been recognised by the investing

The functions of the BSRC include:

community. In 2012, SIA was presented with the SIAS Investor Choice Awards Hall of Fame title in the Most Transparent

• ensuring that systems and programmes in the SIA Group comply with regulatory requirements and accord with the best

Company Award Category for winning the Golden Circle Award continuously in 2009, 2010 and 2011. It was also named

practices of the aviation industry

Best in Transport Sector at the IR Magazine Awards for South East Asia.

• reviewing regular reports on safety performance • reviewing accident investigation findings and recommendations • advising Management and reporting to the Board on safety issues • reviewing the effectiveness of the SIA Group’s operational controls • overseeing the risk governance framework and risk management system, including reviewing key risks and controls put in place by Management *Details of membership in Board Committees and attendance at Board and Committee meetings can be found on pages 52 and 53 of the Annual Report.

14

SINGAPORE AIRLINES


15

FOCUS ON PEOPLE

Stakeholder Engagement: EMPLOYEES “Our success would not have been possible without the efforts of our people. We recruit dynamic individuals from diverse backgrounds and are committed to providing our employees with equal opportunities to achieve their full potential.”

Crew, Flight Operations, Sales and

One of the main forms of regular

We invest significant resources each

Marketing) have their own portals

feedback is the Organisational

year to train our pilots, cabin crew and

to disseminate information specific

Climate Survey (OCS) that we

ground employees.

to their areas of work.

conduct once every two years. The

• Business meetings for employees are organised twice a year and cover a review of the Group’s commercial activities and financial results. • Other forms of employee communications include regular communication sessions, departmental debriefs, and sessions between senior managers and team members who are two or more levels below them. • LCD TVs in employee canteens

As a global airline, SIA is dedicated to

Of this, close to 30 per cent of employees

ground administrative employees.

providing air transportation services of

are ground employees, 54 per cent are

It puts in place a framework that

the highest quality. With an unyielding

cabin crew and 16 per cent are pilots.

embraces a performance-based

commitment to fleet modernisation,

purpose of the survey is to gather

Onboarding

employees’ feedback on employee

New administrative officers (AOs) who

engagement and workplace issues.

join the Company attend induction

The fourth instalment of the OCS

and orientation programmes soon

was conducted in January 2013.

after joining. The objective of the

Towers Watson, a US-based global

programmes is to provide them with

research and consulting company,

an overview of the Company and

was engaged to conduct the survey.

the functions of the various divisions.

The feedback will be used to

Besides learning how key policies and

identify areas for improvement

company strategies have developed

and implement organisation-wide

and evolved over time, the programme

action plans.

provides a good opportunity for new employees to meet others

TRAINING

in the Company.

which broadcast company-related

Our people represent a key competitive

videos and news.

advantage and we place a strong

As part of the onboarding programme

emphasis on the development of

for AOs, the SIA Mentorship Scheme

our employees.

has been ongoing and continues to

culture and a developmental

stand as a unique opportunity for

product and service innovation, as well

INDUSTRIAL RELATIONS

framework that recognises and

newly hired employees to engage with

as market leadership, we are proud to

We work closely with the Airline

rewards good performance.

senior leaders, providing access

be one of the world’s most respected

Pilots Association Singapore (ALPA-S),

travel brands.

Air Transport Executive Staff Union

EMPLOYEE COMMUNICATIONS

resources and wisdom of SIA’s top

(AESU) and Singapore Airlines Staff

AND ENGAGEMENT

leadership. Through the course of a

Our success would not have been

Union (SIASU) to ensure that fair and

We make use of multiple channels

year, the AO has opportunities to ask

possible without the efforts of our

sustainable wage settlements and

to communicate our latest news and

questions, hear insightful stories and

people. We recruit dynamic individuals

employment terms are provided to

happenings to our people. Examples

personal experiences, and become

from diverse backgrounds and are

employees. We have a total of three

of our internal communication

more closely integrated into the

committed to providing our employees

collective agreements in place with

channels include:

SIA family and work culture.

with equal opportunities to achieve

the unions.

• Outlook, our in-house magazine,

their full potential.

which is published on a The Company also recently worked

OUR DIVERSE WORKFORCE

in collaboration with SIASU to launch

As at 31 March 2013, our employee

the Workforce Productivity Initiative

strength was 14,339, with a 2.3 per

- Towards Optimal Productivity (TOP)

cent increase over the previous year.

programme for our Singapore-based

18

SINGAPORE AIRLINES

for new employees to the rich

monthly basis. • Our corporate Intranet site which can be accessed by all employees. Various divisions (e.g. Cabin


19

Stakeholder Engagement: EMPLOYEES (continued) Technical Crew Training

framework is an important facet of

such as young children, the elderly

We conduct all required

their continuing development and

and mobility-challenged individuals,

regulatory training for our pilots

is another way that we invest in the

as well as techniques and skills

and ensure that our training

careers and personal growth of our

for communicating with and

programmes meet not only our

pilots. More details on our flight

relating to customers. This area

training objectives but are approved

operations training can be found in

of training equips cabin crew

by the regulatory authorities.

the Operational Safety section.

with skills to better understand

Apart from mandated training,

Cabin Crew Training

we conduct development training

Our cabin crew members undergo

programmes for pilots of all ranks,

a 15-week-long basic training

In line with our focus on safety

from Cadet Pilots, Second Officers

programme which comprises classroom

and security, cabin crew are also

and First Officers to Captains and

and on-the-job training. It includes

trained in security, safety and first

Instructors. During the course of their

a wide variety of modules such as

aid procedures, including

careers, continuous pilot training

fundamentals of social etiquette,

cardiopulmonary resuscitation

programmes are in place to enhance

personal grooming, meal service

(CPR), during their basic

their operational and flying skills.

procedures, food knowledge and

training programme.

and meet the needs of a wide range of customers.

Social Activities calendar for FY12/13.

SIA Games Festival. The SIA Games

SIA Safety Programme

EMPLOYEE HEALTH

Employee engagement activities were

Festival culminated in a finale event

The SIA Safety Programme serves to

at the end of the month at the SIA

strengthen Safety as a core value and

Group Sports Club.

to promote greater understanding

wine appreciation courses. In addition, we offer a mentoring framework for all ranks of pilots as well

Cabin crew are also taught passenger

To promote a healthy lifestyle

organised to encourage an active and

as online learning programmes in our

handling skills, including methods of

and employee well-being, we have

balanced lifestyle:

put in place several initiatives as

• SIA Group Athletics Meet

e-learning portal SKIES. This mentoring

handling specific customer groups

part of the SIA Wellness & Health

Over two weekends in May 2012,

Programme which was officially

the SIA Group Athletics Meet was

launched in early 2012. The

held at Tampines Stadium. Events

programme includes health talks

included traditional track and field

and sports sessions. Messages on

events, as well as a new inter-

adopting healthy eating habits

divisional relay segment in which

and a regular exercise regimen

employees formed teams with

are displayed at employee canteens.

specific employee grade and gender

In addition, free basic health

requirements to foster employee

screening for our employees

interaction and camaraderie.

was offered as part of the Corporate Health Screening Exercise in January 2013. In support of the SIA Wellness & Health Programme, the Company also rolled out an SIA Sports and

• SIA Games Festival

• SIA Group Road Run

The SIA Group Road Run 2013 was held on 16 March at the Bedok Reservoir running track. The event was promoted with the tagline ‘Set Your Own Pace. Enjoy The Run.’, to encourage employees of various fitness levels to take part. Top runners in each category were awarded medals.

EMPLOYEE SAFETY

For a month in September,

Safety is an essential part of all

employees across various divisions

our operations. All employees are

and subsidiaries had the opportunity

collectively responsible for safety and

to pit their skills and wits against one

security. We have also put in place a

another in an array of sports and

wide range of policies and procedures

leisure activities during the inaugural

to ensure the safety of our customers

and awareness of safety concepts and the Company’s efforts towards safety management. This gives employees a better appreciation of the roles they play, as well as the contributions they can make towards higher safety standards in the Company. The Programme covers: Introduction to Safety, Effective Safety Management, Safety Culture and Our Approach and Commitment to Safety. Every employee is enrolled in the Safety Programme and takes a refresher assessment test every three years.

and colleagues. 20

SINGAPORE AIRLINES


21

Stakeholder Engagement: EMPLOYEES (continued) following modules which will commence

coaching and consultation session

at different phases of their career with us:

by a personal career coach and three months of active job search help are

Financial Planning Course -

also incorporated in this module.

Implemented • Objective: To equip crew with

Crew who become pregnant are

will help in career planning.

not permitted to fly for safety

• Applicable to crew who have completed eight years of service with the Company. • Topics covered include cash flow management, retirement needs, CPF withdrawal and investment products. Personal Profiling Tools To be launched Risk Management

from June 2011. The scheme was

Training Courses

implemented as part of our Flexible

their strengths and weaknesses

One of the key components of the

Work Arrangements Initiatives to

and thereby suggest alternative

Workplace Safety and Health (Risk

achieve the following objectives:

careers they might wish to

Management) Regulations is risk

• Take into account employees’

consider after retirement.

assessment of workplaces and the

personal responsibilities

reduction of risks to an acceptable

and schedules.

level. To equip employees with the necessary knowledge in carrying out hazard identification and risk assessment, two Risk Management training courses were organised in September 2012.

• Provide flexibility and convenience.

• Objective: To help crew understand

• Applicable to crew who have completed their second five-year

encourage crew to return to flying after delivering their child under the Returning Crew Scheme. This scheme enables crew who meet criteria under the Returning Crew Scheme to return to flying with minimal disruption to their careers, with the crew’s previous years of service retained, hence aiding in their career progression. Crew welfare We ensure that our technical and cabin crew members are given sufficient rest during layovers and after flights. Cabin crew are also encouraged to

travelling time by employees

Career Transition Course -

participate in extra-curricular activities

during peak periods.

Implemented

which are put in place to provide

• Objective: To prepare crew

them with a holistic work experience

• Raise employee morale and

for an effective job search. • Applicable to crew

EMPLOYEE WELFARE Flexible working arrangement

Cabin Crew

– staggered hours

Career Transition Programme

The Company introduced the

The Career Transition Programme aims to

Topics covered include writing resumes

Staggered Hours scheme for all

ease cabin crew employees into another

and presenting themselves at job

eligible employees based in Singapore

job area post-retirement. It comprises the

interviews. A three-hour individual

SINGAPORE AIRLINES

reasons, however we actively

term with SIA.

• Reduce the strain of long

improve productivity.

22

Returning Crew Scheme

financial management skills that

approaching retirement.

and opportunities to interact with colleagues. We offer over 20 extracurricular activities to cabin crew within the categories of outdoor sports, indoor sports, lifestyle, and arts and technology.


23

Stakeholder Engagement: customers 0

High Risk or Severe Incidents

0

0

Flight Incident Report Rates (per 1,000 flights)

below 1.72

1.55 (March 2013)

IATA Operational Safety Audit (IOSA)

Y

The 5th IOSA was completed in Jan 2012 with NIL findings

Lost time injury frequency rate (LTIFR)

-

i) SIA ground injury = 1.0 per million manhours ii) Cabin Crew inflight injury = 10.1 per million manhours

Line Operations Safety Audit (LOSA) by TLC (The LOSA Collaborative), Klinect Group L.L.C.

Every 4 years

3rd LOSA commenced in March 2013

Departmental & Corporate Risk Register (Operations)

Quarterly

Reviewed quarterly

Accident Crisis Management Exercise

1

Crisis exercise carried out in November 2012

Safety is one of SIA’s core values. In

• We support and promote a strong

Ed

Actual

0

ht sig er Ov

Targets Accidents

uc Pr an ation omotd ion

sia’s safety performance

Safety Management activities Staff Feedback

“The key safety programmes are carried out according to three main thrusts. We run a series of programmes under each thrust to manage safety actively as part of the SIA Safety Management System.”

Safety & Health Policy

SIA Safety Programmes

we have put in place include our Annual

surveys and aircraft flight monitoring

our daily operations, the safety of our

safety culture and continuous

We place the greatest importance

We run programmes to train our

Safety & Security Week, Annual Safety

systems. We analyse our performance

customers and employees is our first and

improvement in terms of safety

on the safety of our customers and

employees effectively, collect feedback

Awards, Crew Resource Management

data to establish trends and implement

foremost priority. We believe that it is

management.

employees and will do our utmost

and monitor our safety performance

(CRM) or Threat and Error Management

corrective measures to prevent incidents

We subscribe to the Just Culture

to provide and maintain a safe and

continually. The key safety programmes

(TEM) training for cabin crew and

or accidents.

healthy work environment.

are carried out according to three main

technical crew, Flight Operations Safety

thrusts. We run a series of programmes

and Security Symposiums, as well as fleet

We have also completed our 5th IOSA

We:

under each thrust to manage safety

meetings or instructors’ meetings for

(IATA Operational Safety Audit) and are

• Strive to anticipate and eliminate

actively as part of the SIA Safety

technical crew.

in the process of carrying out our 3rd

every employee’s responsibility to work towards a strong and positive safety culture and we have put in place Flight Safety and Safety and Health policies to achieve that goal. SIA’s Flight Safety policy is founded on the premise that: • We will consistently provide quality training to our employees. • Our employees are proficient and comply with applicable regulations and standards. • Our equipment and operating

principles when handling reported incidents and accidents. This refers to a way of safety thinking in which there is an atmosphere of trust for incidents and safety-related information to be reported freely so that lessons can be learnt and improvements made. The culture supports learning and sharing,

Education and promotion

investigations and analysis actively

and equipment.

Our aim is to educate all employees

and share safety lessons learnt with

regarding safety and encourage

employees. On an annual basis,

sharing of safety information within

we present awards to recognise

the organisation. We provide different

employees’ efforts towards safety.

• Take responsible steps to provide

safe operations.

maintenance of equipment

deal with safety issues in a

and facilities. • Instil and promote safety

systems are well-maintained and in

comprehensive and responsive

consciousness among our employees

good working condition.

manner, and are able to inform,

to prevent accidents and injuries.

values effectively.

SINGAPORE AIRLINES

We disseminate the results of safety

loss or damage to property

the best possible care in the

• Our safety management systems

LOSA (Line Operations Safety Audit).

Management System.

personal injury or illness and/or

and is necessary to ensure

educate and strengthen our safety

24

hazards that may result in

levels of safety training to suit the needs of various groups of employees.

Oversight SIA focuses on addressing safety hazards

Recurrent training is also conducted to

and monitoring safety performance in

enhance our competencies. Some of

the organisation through various means

the safety management programmes

such as audits, incident/accident reports,


25

Stakeholder Engagement: customers (continued) the norm. Where such deviations

environment in the workplace and

play as well as the contributions

are identified, the data is further

encourage employees to identify hazards

they can make towards higher safety

analysed and, where necessary,

and report incidents, no matter how

standards in the Company. The

corrective and/or preventive

minor, to create awareness and highlight

Programme covers: Introduction to

measures are taken.

risks. Procedures are put in place for

Safety, Effective Safety Management,

employees to report such incidents for

Safety Culture, and Our Approach

both flight and occupational safety.

and Commitment to Safety.

place to allow us to have a better

Safety governance structure

Every employee undergoes the

understanding of the level of cabin

SIA’s safety governance structure

Safety Programme and takes an

safety on our flights. This also

consists of five groups to guide

assessment every three years to

allows us to assess and review the

safety management:

refresh their awareness.

effectiveness of the safety procedures

• Board Safety and Risk

currently in place. Employee observers

Committee (BSRC).

Cabin Safety Observations (CSO) The CSO programme was put in

from selected departments go on board flights to observe how crew perform their safety duties. The observations are then collated and

• Occupational Safety, Health and Environment Committee (OSHE). • Air Safety Committee (ASC).

Risk Management Training Courses One of the key components of the Workplace Safety and Health Act and Regulations is the risk assessment of workplaces and the reduction

shared with Cabin Crew Management

• Safety, Security & Environment (SSE).

of risks to an acceptable level. To

and crew members. Action plans,

• Divisional safety departments/Safety

equip employees with the necessary

where appropriate, are followed up on.

Action Groups (SAG).

knowledge in carrying out hazard identification and risk assessment,

Ground/Ramp Incident Prevention

Through the GRIP programme,

to be taken early. The GRIP programme

(GRIP) programme

observations are carried out during

has helped to inculcate a higher level of

The SIA Ground Ramp Incident

ramp operations to review compliance

safety awareness among employees.

Prevention (GRIP) programme focuses

with ramp safety regulations and

on preventing ground/ramp incidents

practices without imposing punitive

Flight Data Analysis

at our stations.

action on offenders. The aim of these

Programme (FDAP)

observations, carried out by supervisory

Flight data is captured in Quick

The objective of the GRIP programme

employees, is to identify weak and

Access Recorders (QAR) in aircraft.

is to:

unsafe practices for effective correction

This data, capturing much of

• Raise awareness of safety practices

through focused education and safety

the aircraft’s flight and systems

promotion. It also serves to measure

performance, is downloaded from

our safety levels on the ramp.

the QAR and used by engineering

on the ground. • Reduce ramp incidents. • Raise safety competency levels. • Measure safety performance standards for continual

maintenance colleagues, as well as The observations help identify common

flight crew, to support safe operations.

safety lapses to allow corrective action

The data for every flight is screened, focusing on any deviations from

Safety surveys

We also have a comprehensive

two risk management training

SIA carries out a company-wide

list of quantitative and qualitative

courses were organised in

online Safety Survey with air crew

performance indicators to measure

September 2012.

every two years. The Safety Survey

the effectiveness of our efforts. These

assesses a number of areas, such

indicators are reviewed on a quarterly

Crisis Management Workshop for

as safety management, violations

basis and are benchmarked against

Customer Care Representatives (CCR)

observed during operations and

industry standards.

The aim of the course is to ensure that

readiness of our crew to report safety

employees are trained as SIA Customer

occurrences or issues. It provides

SIA Safety Programme

Care Representatives (CCR) and are

an overall assessment of the safety

The SIA Safety Programme serves

able to deliver SIA’s personalised care,

climate and culture in our operational

to strengthen Safety as one of our

concern and assistance to affected

environment, as well as any safety

core values and to promote greater

passengers, crew and family members

concerns of our aircrew.

understanding and awareness of the

should an incident occur.

safety management concepts and our Employee feedback

efforts towards safety management.

We place emphasis on using employee

The purpose is to give employees a

feedback to improve the safety

better appreciation of the roles they

improvement. 26

SINGAPORE AIRLINES


27

Stakeholder Engagement: customers (continued) “To equip employees with the necessary knowledge in carrying out hazard identification and risk assessment, two risk management training courses were organised in September 2012.”

• Second Officer training to qualify

emergency situations. Recurrent

Developmental Training

In addition to recurrent training and

as First Officers: Cadet pilots who

training also allows our pilots to

SIA has a Pilot Development Unit that

developmental training, every pilot

complete their initial pilot training

practice manual flying of

takes charge of development training

undergoes a minimum of three checks a

undergo a conversion training

aircraft under different situations

programmes for pilots. Most of these

year - two Base Checks in the full-flight

programme to qualify to fly the

and environmental conditions.

courses are conducted by in-house

simulator to demonstrate competency

A330 or B777. They then undergo

Manual flying is a key skill for

presenters and facilitators, with some

in manual flying and in handling and

a structured Second Officer

pilots in the face of increasing

courses run by external consultants. We

managing irregular abnormal and

training programme. On successful

automation in modern flight decks.

also conduct Instructor Pilot Training

emergency procedures, as well as one

Programmes for instructor candidates.

Line Check in the aircraft to assess

They are activated to provide support

At the launch event, awards and

completion, they are appointed

to those affected, assisting them to

citations were presented to individuals

as First Officers in SIA, after which

bear with the initial shock, reduce

and teams displaying an outstanding

they operate as qualified co-pilots.

discomfort and cope with bereavement

safety and security quotient in the

or grief. CCRs are also taught how to

course of their work. The event

deal with their own feelings on their

included a safety and security forum

return to work.

where speakers shared insights and challenges. During the week, other

Safety & Security Week, 2012

promotional and awareness activities

Safety and security is an everyday

were held for Cabin Crew, Engineering

concern for everyone in SIA. This was

and Flight Operations to drive home

highlighted in a series of activities

the Safety and Security message

held during the week from 24 to

among employees.

28 September 2012 dedicated to the subject.

Operational Safety For our pilots, operational safety is key.

“Increasing Your Safety and Security

To ensure the highest standards of flight

• Initial Command Training for

tested. It also ensures they remain

Captains: First Officers who

safety and emergency procedures.

meet the standards to qualify for command are put through a rigorous training programme before they are promoted to Captains. • Conversion training to qualify pilots for an aircraft rating: Any pilot who moves to a different fleet must undergo conversion training. • Initial CRM (Crew Resource

operations, our pilots undergo

Safety and Security Week, stressing the

rigorous training with continuous

for all pilots.

importance of heightened awareness

refresher courses to ensure they are

among employees of their roles and

at the top of their game.

• Initial SEP (Safety and Emergency

• Recurrent CRM Training: This is conducted for pilots once every two years. In addition, there is annual recurrent CRM training conducted jointly for pilots and cabin crew. • Recency Training: This is conducted

competency in operating a regular flight Other Training

in accordance with company policies and

Within the framework of mandatory

standing operating procedures.

training, SIA also conducts other training for pilots, deemed useful

This continues throughout the pilot’s

or necessary in light of our operating

career and a pilot will visit the full-flight

experience or recent events or incidents

simulator at least once every three

by other airlines (evidence-based

months either for a training session

training). Every year our colleagues

or a check. This ensures that a pilot’s

from Flight Crew Training attend

knowledge, flying skills and cockpit

major pilot training conferences

management skills are continuously

and seminars held by industry

practiced, refreshed and updated.

organisations and aircraft

for any pilot who has been absent

manufacturers to gain insight into

Another key initiative in our pilot

from flying for more than 35 days.

new and innovative training

development is the launch of the pilot

methodology and to share training

mentoring programme in 2012. This

experiences within the industry.

mentoring framework aims to further improve our pilots’ performance through teaching, coaching and

Procedures) training is required for

role modelling. It also supports the

all pilots.

transition of our pilots in their new

Initial Pilot Training: • Ab-initio pilot training conducted

pilots’ knowledge is refreshed and competent in aircraft and cabin

Quotient” was the theme of our

security at their workplaces.

every year, the training ensures our

First Officers to become qualified

Management) training is required

responsibilities in ensuring safety and

• Recurrent SEP Training: Conducted

roles as they advance through the Recurrent Training:

ranks, from cadet pilots to instructors.

• Recurrent Training for pilots:

In addition, this mentoring framework

The involvement of every employee

by Singapore Flying College:

is the cornerstone of our Integrated

Training cadet pilots with no

Conducted twice a year in the

provides opportunities for our senior

Safety Management System. We

flying experience to achieve an

full-flight simulator, the recurrent

pilots to develop their coaching,

believe that all employees have a role

ATPL (Airline Transport Pilot’s

training programme enhances the

mentoring and communication skills.

to play to ensure safety and security in

Licence) rating.

proficiency of our pilots in handling

the workplace.

28

SINGAPORE AIRLINES

and managing abnormal and


29

Stakeholder Engagement: customers (continued) The goal of the mentoring programme

• ISO 14001:2004 Environmental

about the importance of situational and

is to develop our pilots to their full

Management System for the

safety awareness, as well as teamwork

potential, enhance safety attitudes

Provision and Management of

and effective communication. Cabin

and behaviours by building on their

Aviation and Engineering Support

crew undergo Safety and Emergency

professional values, and propagate

Services to SIA; and

Procedures (SEP) training, which our

SIA’s organisational core values. Fatigue Risk Management System (FRMS) SIA is an active participant in this programme, which looks at issues related to pilot fatigue to enhance safety and ensure optimal operating levels of our crew. Crew rest facilities on our aircraft are carefully evaluated to ensure proper rest is available for our crew who are on duty. Aircraft Maintenance SIA complies with recommended Safety Management System (SMS)

• BS OHSAS 18001:2007 Occupational Health & Safety Management System for Provision and Management of Aviation Engineering Support Services to SIA. Passenger Safety All cabin crew undergo training courses that inculcate safety and security awareness and focus on safe work habits. From the earliest stages of their flying career, cabin crew are educated on the importance of balancing service with safety and security. They also learn

pilots undergo as well, and are involved in the Fatigue Risk Management System (FRMS) programme to enhance safety

“All cabin crew undergo training courses that inculcate safety and security awareness and focus on safe work habits. From the earliest stages of their flying career, cabin crew are educated on the importance of balancing service with safety and security.”

to communicate important travel information to customers as well as to obtain more feedback to improve our products and services. Customer service excellence is one of three main pillars on which our brand promise is built. We believe in listening to our customers and we do so via

and ensure optimum rest is available for our crew. Resources such as videos,

Glutamate (MSG) in our freshly prepared

customers have access to information

various means such as focus groups,

circulars, campaigns and various

meals as far as possible - although traces

has also lifted public expectations.

surveys and feedback letters. We

communication sessions are used to

of MSG may be found in commercially

Increasingly, we are finding that

receive a monthly average of over 6,000

inculcate safe work habits and increase

available, pre-packaged food products.

customers now expect real-time

customer feedback comments through

crew awareness on workplace safety.

Our caterers ensure that food sources

customer service recovery and quick

channels such as our website, comment

are certified by accredited sources, from

responses to their online feedback.

forms and letters. Our dedicated

Food Safety

factories with Good Agricultural Practice

SIA is committed to serving in-flight

(GAP), Good Manufacturing Practice

In response, SIA launched its official

feedback and conducts investigations

meals that meet the highest levels of

(GMP), Hazard Analysis and Critical

Facebook and Twitter channels

into issues which require follow-up and

food safety and hygiene. We have

Control Points (HACCP), International

in September 2011 to provide

service recovery. All feedback is used to

a policy of not using Monosodium

Organization for Standardization (ISO)

additional points of contact for

improve our services and processes.

and/or Health certifications.

greater online customer engagement,

Customer Affairs team looks into all

practices by the Civil Aviation Authority of Singapore (CAAS). The CAAS SMS

Locally-manufactured items are

elements mirror those prescribed

procured only from suppliers with an

by the International Civil Aviation

AVA Factory Grading B and above

Organization (ICAO) in the ICAO

(in the case of Singapore), or the

Safety Management Manual.

equivalent (in the case of overseas countries). The Quality Assurance team

Additionally, our Engineering division

conducts factory audits, especially for

has been accredited by TUV SUD PSB

high risk food materials, apart from

Pte Ltd, a global testing, certification,

regular sampling laboratory tests and

inspection and training provider, in the

random quality checks on incoming

following aspects:

raw materials.

• ISO 9001:2008 Quality Management System for the

Customer Service and Engagement

Provision of Technical Support

The proliferation of digital media,

for SIA’s Aircraft Acquisition and

especially social media, has changed

Disposal, Aircraft Maintenance

the way our customers consume

Activities, and Engineering and

information. The speed at which

Spares Management;

30

SINGAPORE AIRLINES


31

Stakeholder Engagement: customers (continued)

Stakeholder Engagement: Partners

We rely on external expertise in some

annual programme that recognises

areas to help us pinpoint trends that

exemplary individuals and teams whose

may impact our customers’ tastes and

outstanding TCS performance has

preferences, such as in the area of in-

contributed significantly to SIA’s service

In line with our focus on sustainability, SIA has adopted the following best practices in our engagement with suppliers:

flight dining, where we have the help

excellence. TCS has defined SIA’s service

of our International Culinary Panel and

culture since its inception 14 years ago.

Wine Panel.

Implicit in this is an attitude of constant reinvention of service, to serve the

In addition, we conduct surveys

ever-changing needs of our customers.

and focus group studies to measure

TCS has evolved over the years, and SIA

customer satisfaction via on-board

has increasingly anchored our strength

and on-ground customer points of

in customer service through TCS.

contact. The relevant departments

‘Creating Extraordinary Moments’ starts

will then work to improve any services

with recognising and discovering each

that have declined or address areas of

customer as an individual with unique

weakness. We are also unstinting in

needs and expectations. This is followed

Suppliers’ compliance with

competitive position for contract award

supplier has received any awards

our investment in training programmes

by designing opportunities to personalise

applicable laws

consideration, assuming all other

or commendations related to

for our service employees to meet

the service just for the individual, which is

We have provisions in our purchasing

factors such as cost, product quality

environmental performance, as well

the needs of our increasingly

a delight to any customer.

contracts that require our suppliers

and delivery performance are on par.

as whether the supplier has been

to commit and warrant that the

sophisticated customers.

fined or prosecuted for environmental

All these measures ensure we do not

items supplied are in compliance

The FSC is an international non-

non-compliance in the last three years.

We launched a new Transforming

deviate from our objective since founding

with all applicable laws and related

profit, multi-stakeholder organisation

We conduct visits to potential new

Customer Service (TCS) theme in May

- which is to provide air transportation

requirements, including but not limited

established in 1993 to promote

suppliers’ factory sites, when

services of the highest quality.

to labour laws, employment laws and

responsible management of the

required, to assess their suitability

industrial laws.

world’s forests. Its main tools for

and capabilities.

2012, ‘Creating Extraordinary Moments’, at the CEO TCS Awards, which is an

achieving this are standard setting, Bio-degradable material

independent certification and labelling

Cleaner production/

We welcome proposals from suppliers

of forest products.

manufacturing technologies

that include bio-degradable/recyclable

32

SINGAPORE AIRLINES

We are constantly seeking suppliers

materials as alternatives to more

Environmental management

who are capable of adopting cleaner

commonly-used raw materials such

Environmental management is

manufacturing processes. We recently

as plastics and aluminium.

one of the key parameters in our

participated in a trial with a mill for

assessment of suppliers. Some of

the printing of batik fabric used in

Sourcing of suppliers with

the considerations which we look

the design of our iconic cabin crew

sustainable business practices

at include the supplier’s policy

uniform. The mill uses a pigment print

We encourage participation from

on environmental management,

technique that consumes a smaller

suppliers who are actively engaged

whether the supplier has a formalised

volume of water during production

in environmentally-friendly activities.

environmental management system

compared to the traditional reactive

For instance, paper-product suppliers

such as ISO 14001 in place, whether

dyeing technique.

which are Forest Stewardship Council

the supplier has set environmental

(FSC)-certified may be in a more

performance goals, whether the SUSTAINABILITY REPORT 2012/13

33

Stakeholder Engagement: Partners (continued) Lightweight design

Basic requirements

ground handling companies to adhere

We are constantly exploring lighter-

for catering and

to the standards of the IATA Aircraft

weight designs of in-flight items, as

handling services

Handling Manual (AHM). All catering

this helps reduce the amount of fuel

Our caterers, in the provision of

and ground handling staff shall receive

needed for flights.

service, must comply with local laws

adequate training in operating our

and regulations strictly with regard

aircraft. Examples of such training

Recycling of obsolete/

to hygiene, safety and security. They

include opening of aircraft doors,

scrap products

must ensure that their facilities used

Ground Support Equipment (GSE)

We work with suppliers to collect

for storage, preparation, production

driving, handling catering equipment

obsolete products for recycling

and transportation of our meals and

in high lifts and IATA dangerous

purposes where possible.

beverages meet all the standards

goods awareness.

as set by the International Air Engineering spares

Transport Association (IATA), ICAO

Anti-corruption practices

Engineering spares are sourced from

and the Hazard Analysis and Critical

We have included clauses on

Original Equipment Manufacturers

Control Points (HACCP) concept

“anti-corruption/anti-bribery

(OEMs) and their accredited agents.

developed and administered by

practices” in all our new contracts

For engineering components,

the International Flight Catering

from June 2012.

of value, directly or indirectly, to any

Mitigating Food Wastage

Improving Quality of Service

repair organisations are required

Association (IFCA)/International

government official or private person

We engage caterers in some of our

to Our Customers

to be certified and approved by

Flight Safety Association (IFSA).

Our handling agents must agree to

in order to secure any improper

newer contracts to provide assessments

As part of the Service Level Agreements

advantage or to influence any decision

of the type and quantity of food that

(SLA) in our contracts, we also collect

or act, directly or indirectly.

is unconsumed on flights so as to

feedback from our customers on a

review the quantity that is uplifted and

quarterly basis with regard to the

thereby minimise wastage.

quality of meals served on board,

comply with all local laws where they

their respective authorities from ICAO contracting states before any

In addition, as safety is of utmost

operate, including, but not limited to,

procurement is carried out.

importance in aircraft handling, we

acceptance of offers made in the form

require all contracted catering and

of payments, gifts or other transfers

We also put in place key performance indicators (KPIs) for warehousing operations to monitor their performance in all aspects, including safety, health and environment. SDV, a supply chain company which we have outsourced our warehouse operations to, has also incorporated our Workplace Health and Safety programme in its operations and our Engineering division chairs the joint monthly Warehouse Safety Committee to track compliance.

Suppliers’ Code of Conduct Starting this year, we will be publishing

as well as cabin and ground

a Code of Conduct on our website

A major sustainability initiative

which we expect all our suppliers to

undertaken by SATS, our inflight

comply with. Based on the principles

caterer in Singapore, is identification

of the United Nations Global Compact

of pre-preparation areas for fruits and

related to Human Rights, Labour, the

vegetables where organic waste could

Environment and Anti-Corruption, and

be segregated from inorganic waste.

taking into account operational, social

About three tonnes of organic waste

and environmental issues, the Code of

is collected daily with about 99.7 per

Conduct was developed in accordance

cent purity. For its efforts in organic

with our business values and with the

waste recycling, SATS was awarded a

intention of promoting sustainable

token of appreciation at the National

development. The Code can be found

Environment Agency Recycling Week

on pages 36 and 37 of this report.

2010. Overseas caterers make similar

handling services.

efforts in line with their respective local requirements.

34

SINGAPORE AIRLINES


35

Stakeholder Engagement: Partners (continued) Sia Suppliers’ code of conduct Compliance with Laws

Ethics and Conflict of

Safety and quality

Environment

Labour Standards

Subcontractors and other

Communication,

and Regulations

Interest

- Health and safety

- Compliance with laws and

- Equal opportunity

service providers

Documentation and

- Accounting practices

- Anti-corruption

- Quality of products and

- Non-discrimination

- Compliance with Code of

Inspection

- Competition compliance

- Financial integrity

- Intellectual property

- Confidentiality

- Disclosure

- Relationship of business

- Working hours

partners with company

- Wage standards

services

regulations - Engagement in environmental management processes

- Minimum age/child labour/ forced labour

Conduct - On-time payment

- Employee awareness of Code of Conduct - Language translation

Suppliers’ business operations, as

Business dealings must be handled

Health and safety protection

Local environmental laws and

Employees must not be subjected

Subcontractors and service providers

Employees must understand the

well as all products and services

with integrity, transparency

policies and management systems

practices such as those pertaining

to discrimination based on race,

must also adhere to the principles

requirements of this Code of

supplied to Singapore Airlines

and honesty. No form of fraud,

must be in place by suppliers

to waste disposal, air emissions

national origin, ethnicity, religion,

set out in this Code of Conduct.

Conduct, which must be made

Limited (“Singapore Airlines”),

corruption, bribery, extortion or

to provide a secure working

and pollution must be complied

gender, age, marital status, sexual

Subcontractors and service

available in the local language

must fully comply with the laws and

other behaviour involving improper

environment. They must be

with. Suppliers must endeavour

orientation, disability or any

providers must be paid accurately

where necessary.

regulations of the countries where

benefits will be tolerated. Any

designed to promote the general

to minimise the impact of their

other reason.

and promptly.

suppliers’ operations are based as

situation that has actual, perceived

health of employees and reduce

operations on the environment.

- All employees must meet the local

well as where goods and services

or potential conflict of interest must

work-related injury and illness. For

are provided to Singapore Airlines.

be disclosed to Singapore Airlines.

example, protective equipment

Environmental management is a key

- Forced, coerced, bonded,

and tools must be provided and

parameter that Singapore Airlines

indentured, involuntary prison

All financial and business records

Any information used in the business

replaced/maintained regularly.

looks at when selecting its suppliers.

labour or otherwise must not

must be accurately maintained in

relationship with Singapore Airlines

accordance with applicable laws

that is non-public and proprietary

The safety of all products and

and regulations, as well as generally

must be protected against loss and

services must be ensured

considerations for voluntary

on Singapore Airlines. It may be

accepted accounting principles.

infringement. Any form of disclosure

through appropriate policies,

overtime work, and the granting

amended from time to time. The

or use other than for officially stated

implementation and monitoring.

of leave of any form, must be in

latest version will be available at

accordance with applicable local

http://www.singaporeair.com.

Fair competition must be practiced

purposes must first be authorised by

in accordance with local laws, and

Singapore Airlines.

activity that restricts competition

legal minimum labour age.

be used.

Policies and management systems must be developed to ensure that

must be avoided. Commercial

Any form of relationship with a

the quality of all products and

decisions, including prices, terms

competitor, distributor, supplier,

services are as specified in the

of sale, division of markets

travel agency or any other entity

supply agreement.

and allocation of customers,

with which Singapore Airlines has

must be made independent of

a business relationship must not

understandings or agreements

interfere with the provision of

with competitors.

products and services to Singapore

- Employee working hours, including

This Code of Conduct does not create any binding obligations

and/or national laws. - Salaries must not be less than standards specified by local laws.

Airlines and should demonstrate high standards of ethical business behaviour.

36

SINGAPORE AIRLINES


37

SUPPORTING OUR COMMUNITIES

Community Engagement “As a longstanding supporter of Community Chest, a non-profit organisation that channels funds to assist the less-advantaged in the community, SIA continued to contribute towards the annual “Give A Hand!” campaign, which raises funds for various beneficiaries under its care.”

and can be found in 36 countries

Singapore Airlines Charity Day

on five continents. The Singapore

in support of children with

affiliate, which is a member of the

special needs

National Council of Social Services, was

Last year, SIA raised more than

launched in 2003.

$400,000 for Community Chest through a pair of limited edition female

Since 2010, we have been donating

and male panda toy collectibles which

items left behind by our customers

were clad in our signature batik motif.

SIA believes that operating a

Singapore Lyric Opera (SLO) and

and uncollected for more than

successful airline involves contributing

the National Arts Council (NAC),

four months to The Salvation Army

Fundraising began with a charity drive

actively to the communities in which

among others.

Singapore. These items are re-sold at

on 8 September 2012, when staff

we work and live. SIA has for many

affordable prices through a network

members of the Singapore Airlines

years been a fervent supporter of

As a longstanding supporter of

of Family Thrift Stores to raise funds

Group were stationed at six locations

various charitable organisations, as

Community Chest, a non-profit

for the charity’s social and community

across Singapore to give away pandas

well as educational, arts, sports and

organisation that channels funds

programmes. Through work-therapy

to donors who contributed $20 or

heritage institutions. Our support is

to assist the less-advantaged in

programmes integrated with the

more. The toy collectibles were then

in the form of complimentary and

the community, SIA continued

Family Thrift Stores, employment

made available for donations on board

rebated air tickets, cash contributions

to contribute towards the annual

opportunities are also created for

selected flights through KrisShop.

as well as staff involvement.

“Give A Hand!” campaign, which

under-privileged people to help

raises funds for various beneficiaries

them earn a living and integrate into

All funds raised were donated to

under its care.

society. Between 1 January and 31

Community Chest in support of

In FY 2011-12, Médecins Sans Frontières (MSF) was incorporated

December 2012, The Salvation Army

programmes that benefit children

as one of the organisations that SIA

In the educational sector, we continued

collected nearly $45,000 from the

with special needs.

supports on a recurring basis. Also

to support the JY Pillay Global-Asia

sale of SIA’s donated items.

known as Doctors Without Borders,

Programme, which raises local levels

MSF is a leading international

of research and fieldwork, as well

humanitarian aid organisation that

as the Lee Kuan Yew Fund for

provides emergency medical assistance

Bilingualism, which spearheads

to populations in distress or danger

initiatives to teach children their

in more than 70 countries, including

Mother Tongue and English.

people affected by armed conflict, epidemics, natural or man-made

In FY 2013-14, SIA will be adding to

disasters or exclusion from healthcare.

our portfolio Make-A-Wish Foundation Singapore (MAW), an affiliate of Make-

In the area of the Arts, we maintained

A-Wish International, which grants

our longstanding support for

wishes to children aged between three

institutions such as the Singapore

and 18 with life-threatening medical

Symphony Orchestra (SSO), the

conditions. MAW is the largest wish-

Singapore Dance Theatre (SDT), the

granting organisation in the world

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41

Community Engagement (continued)

Community Projects Around The World

Harapan Rainforest Initiative

mammals, including the critically-

Since August 2010, SIA has

endangered Sumatran tiger, the

committed to be the exclusive airline

clouded leopard, Malayan tapir

partner for the Harapan Rainforest

and Asian elephant, call the

Initiative, a large-scale green project

rainforest their home. The Initiative

aimed at restoring ecosystems

also plays a significant role in

threatened by deforestation, as well

engaging the local indigenous

as conserving and protecting one

Bathin Sembilan community by

of the most biodiverse rainforests

providing social development and

“As a global airline operating to more than 60 destinations in over 30 countries, Singapore Airlines is acutely aware of the importance of building strong relationships with the local communities that we serve. Many of our overseas offices work with local charities in support of various initiatives and causes.”

in the world.

employment opportunities.

Straddling Indonesia’s Jambi and

SIA’s contribution towards the

South Sumatra provinces, the

protection and restoration of one

In addition, SIA has appointed The Smith

Harapan Rainforest spans almost

of the most extensive tracts of

Family, which supports disadvantaged

100,000 hectares – an area nearly

lowland rainforest left in Indonesia

children through education, and Lille

one-and-a-half times the size of

reflects our strong belief that

Fro Foundation, which is committed

Singapore. It is one of the few

environmental efforts must focus

to providing education and training

remaining tracts of lowland rainforest

on making a real and direct

to children and families from small

in Indonesia, which could otherwise

difference to the well-being of

communities difficult to reach due

face illegal logging or be converted to

our planet, and sustain our shared

to their geographic isolation and

either oil palm or timber plantations.

environment for future generations.

circumstances, as our two official charities

Over 300 bird species and 55

in Australia, providing support across their programmes and fundraising drives. Australia

been the official airline partner of Arts

We have also supported a number of

Exhibition Australia (AEA) since 1988, as

specific charity projects and non-profit

well as a major sponsor of Sydney Dance

organisations on a goodwill basis,

Company since 2011. During the year in

principally through flight auctions,

review, we were the principal donor of

discounted travel and excess baggage

the Portrait of Spain - Masterpieces from

waivers. This support included: the

the Prado exhibition at the Queensland

Western Australian Police Service’s

In Australia, SIA remains committed

Art Gallery and principal sponsor of

landmine clearing efforts as well as

to making a positive contribution to

Turner from the Tate: The Making of

its relief fund for an orphanage in

the community by supporting the

a Master at the Art Gallery of South

Cambodia; the filming of a documentary

Arts and local charities dedicated to

Australia. SIA was also the official airline

for CARE Australia in Cambodia; and

making a difference to children in need.

sponsor of the Indian Film Festival and

travel for Artisans of Fashion in support

In addition to sponsoring the West

the Spanish Film Festival.

of its mission to create sustainable

Australian Ballet since 1972, we have

livelihoods for vulnerable communities and rural artisans in India.

42

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43

Community Projects Around The World (continued) Indonesia

In Indonesia, SIA has contributed consistently to educational efforts. Since 1997, we have supported thousands of students through scholarships and school visits to Singapore in collaboration with the WIPARA Foundation. In 2012 alone, 144 Indonesian students benefited from scholarship funds used to pay

Korea

received presents such as Braille story

their school fees. Between 2000

books and headphones to aid them

and 2007, SIA also ran a scholarship

in their studies, while their siblings

programme named Singapore Airlines

received science books.

untuk Pendidikan (SIA for Education) which provided financial help to more than 2,500 elementary school students and nearly 500 university students to help them continue their education. These students were forced out of school due to financial constraints but demonstrated the potential and willpower to continue with their education. In 2009, we launched a mobile library named “Books on Wheels” in collaboration with Forum Warga Kota Jakarta’s (the Jakarta City Resident Forum) education programme for underprivileged children and children who spend their time wandering the streets. For the project, the interior of a van was modified to become a library, with books and magazines donated by our staff members.

At the end of the visit, the children

In Korea, SIA staff volunteers took

Japan

students from the Seoul National School for the Blind and their siblings on a visit to the National Folk Museum of Korea on 21 July 2012. The National Folk Museum is dedicated to traditional Korean experiences. The students

In Japan, SIA ensured that children at

enjoyed getting a feel of kitchen

Narita Red Cross Hospital did not miss

items like millstones and iron pots, as

out on the fun and festivities of the

well as listening to the sounds they

Christmas season with a surprise visit

produced. In an activity named “Slicing

by “Santa”, Customer Services Agent

of the Huge Gourd”, which is based

Tashima Masanori, as well as Japanese

on Korean folklore of a poor family

flight stewardess Mae Yuki. The duo

blessed with treasures for its warm-

visited the children with Christmas

hearted nature, the children listened

presents including SIA aircraft models,

keenly to the abundant sounds and

drawing sets, children’s amenity kits and

explored the “treasures” with their

spent time with the children and their

hands as the gourd opened and its

parents. We began this annual tradition

contents spilled out. They also enjoyed

of Santa’s Surprise Visit at the Narita Red

trying on the traditional Korean hanbok

Cross Hospital in 2006.

costume and playing the xylophone.

44

SINGAPORE AIRLINES


45

Community Projects Around The World (continued) Philippines

Russia

Switzerland

well as skits. The progress of these

In Russia, SIA sponsors a team of

In Switzerland, SIA supports

In the Philippines, SIA has provided

students is tracked and awards are

young budding talents in the Moscow

“With Me”, a project that finds

more than 1,000 scholarship grants

given out at the end of every school

Youth Soccer League. The annual

godfathers and godmothers to spend

through the Singapore Airlines

year to deserving students.

tournament, a highlight for hundreds

time with children from difficult

of boys and girls aged three to 18

family backgrounds, to provide

beginning and end of the school year as well as during Christmas to interact with and find out more about them. During these sessions, the students and staff take turns to perform song and dance numbers as

Scholars programme since 2003, in partnership with the Bantay

In addition, SIA supports the Pasig

years, has been held in Moscow for

encouragement and support. Along

Edukasyon Program. The scholarship

River Project by providing air tickets for

more than 15 years. It is run entirely

with Zurich Airport, we invited 12

recipients are elementary school

fundraising and donating in-flight toys

by volunteers on a non-profit basis.

children and 10 accompanying parents

students between six and 12 years

to the children of residents who had to

of age from various areas in the

relocate. The Project aims to clean up

Philippines. During the school

the riverbank settlements where there

A380-800 aircraft, a guided airport

year 2012-13, 130 students were

is a lack of proper sanitation facilities

tour, a special lunch treat as well as a

supported through the programme,

and an excess of waste dumped into

Grittibänz baking lesson. The children

which provided them with school

the water daily. It has built concrete

enjoyed a sneak peek of the cockpit,

supplies, clothing, shoes, food and

embankments, provided running water

posed with SIA pilots, watched the

transportation allowances. Our Filipino

and installed septic tanks to improve

In the UK, SIA supports a community

superjumbo’s take-off at close range,

staff members meet with the Singapore

the hygiene and living standards of

project named Chiswick Pensioners

as well as enjoyed a surprise visit by

Airlines scholars thrice a year at the

the residents living by the Pasig River.

Alone At Christmas. The 28-year-old

Airport Santa.

and godparents for a day event which United Kingdom

included a walk-through tour of the

initiative features an annual Christmas party for about 60 senior citizens to alleviate their feelings of loneliness during the festive period. A volunteer from the Home Care Service who began the project realised that missing their friends and family during Christmas led to an increase in the number of elderly people who went into residential care or passed away after the holiday period. By matching the amount of donations collected for the initiative each year, we contribute to the local community of senior citizens to help keep their spirits up during the festive season.

46

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47

CARING FOR THE ENVIRONMENT

MANAGING OUR ENVIRONMENTAL IMPACT Energy and Resource Conservation Measures

glass panels are installed with solar

of resources and environmental

with environmentally

films to reduce heat transmitted

protection, a wide spectrum of

friendly refrigerants.

into buildings. Natural ventilation vegetation and open spaces help to

(OMS) rolled out across offices in all SIA

Handling Units that result

reduce “urban heat island” effects.

premises. The OMS features state-of-

in energy saving and better

In addition, the new chiller system

the-art designs and best office practices

humidity control.

and fire-protection system use

different work styles and operational requirements, the OMS incorporates many environmentally-friendly features that focus on resource conservation and waste minimisation.

authorities.

Flight Operations divisions, as well as in

flying passengers and freight around the world. We also take a longterm view towards the sustainable development of the environment in which we operate our air transportation and related businesses. As part of our commitment to environmental conservation, we: • communicate the importance of respecting the environment to staff and provide training where applicable to ensure they fulfil their environmental responsibilities. • monitor changes in environmental legislation, regularly assess our level of compliance and cooperate

• have established an environmental action programme to manage environmental issues relating to the use of energy and resources, atmospheric emissions, effluent discharge, waste management, noise, as well as relations with suppliers. • are transparent about our environmental policies and action plans. Environmental Management System Environmental Management Systems (EMS) certified according to the ISO 14001:2004 standard have been

50

SINGAPORE AIRLINES

SIA Engineering Company. Objectives and measurable targets are set for the environmental action programmes under the EMS. These are reviewed and updated periodically to ensure legal compliance and consistency with our commitment to reducing pollution. Operations that have a significant environmental impact are regularly monitored. Measurements are also taken to ensure that the applicable controls are documented and implemented in compliance with the EMS. One way in which environmental awareness messages are broadcast to

replaces mechanical ventilation and

variable speed motors for Air

a flexible workplace that supports

SIA is dedicated to safely and reliably

- uses pre-cooled coils and

the new Office Management System

energy conservation. Besides providing

implemented in the Engineering and

in building design. For example,

controlled chiller plants

that maximise space utilisation and

fully with environmental regulatory

- uses variable speed

The use of natural light is preferred

With an emphasis on optimal usage

measures have been put in place under

Environmental Policy

• An air-conditioning system that:

• Emulsion paints that emit less volatile organic compounds used for internal walls. • The use of carpet tiles with a high content of recycled materials. • The use of ceiling and partition boards made from recycled materials.

non-ozone depleting substances. In line with SIA’s focus on resource utilisation and environmental protection, we choose to use green materials with low volatile organic compounds (VOC) and high recycled content wherever possible.

Some of the key features of the OMS

Improvements have also been made to

Waste Management – The

include:

the air-conditioning system, cooling tower

3Rs (Reduce, Reuse, Recycle)

• More efficient lighting and controls

system, chiller system, lighting system,

Approach

such as:

indoor air quality system and variable air

SIA supports the National

- use of energy-saving T5

volume system in Air Handling Units to

Environment Agency’s 3R (Reduce,

enhance energy savings.

Reuse, Recycle) approach to prolong

tubes with reflector covers to increase illumination.

the lifespan of our incineration

- exit lights that use low-energy

Water consumption is conserved

plants and landfill site. For example,

light-emitting diode (LED)

through the installation of flow

to reduce paper consumption,

technology.

restrictors and dual flush valves in

an electronic version of SIA’s monthly

toilets. Recycled water is used in

in-house magazine is available as

cooling towers of buildings and

an alternative to the traditional

for watering of landscapes. No

printed copy.

- use of motion sensors to activate toilet lightings. - a smart lighting management system for offices and meeting

chemicals are discharged from the

rooms that is programmed to

cooling towers. A special rainwater

Off-site segregation and recycling of

switch off after 6.30 pm.

collector located at the rooftop of

materials from general waste collected

our headquarters building collects

from SIA premises are conducted by

rainwater which is used for watering

the appointed waste collectors.

- a zonal lighting system.

of plants and flushing of toilets.

staff is through regular dissemination of electronic bulletins. SUSTAINABILITY REPORT 2012/13

51

MANAGING OUR ENVIRONMENTAL IMPACT (continued)

ENVIRONMENTAL RESPONSIBILITY

Recycling To maximise efficient use of limited resources, staff members are encouraged to carry out good office practices, including: • printing double-sided documents when needed. • storing documents, files and archives electronically.

Resource Utilisation Water Consumption (,000 m3) Electricity Consumption (Gwh) Petrol (,000 litres) Diesel (,000 litres) Paper Consumption – A4 paper (ream)

2012-13 268.3 56.9 228 3,161 64,900

2011-12 222.9 60.5 288 3,309 66,753

2010-11 253.6 59.9 280 3,376 58,820

Carbon Emissions - Ground Operations From Fossil Fuel (tonnes) From Electricity Used (tonnes)

2012-13 8,744 29,284

2011-12 9,266 31,705

2010-11 9,423 31,370

Waste Generated in SIA Group * General Waste (tonnes) Toxic Waste (litres)

2012-13 5,082 55,200

2011-12 5,990 69,000

2010-11 5,981 72,000

Recyclables * Used Cooking Oil (kg) Used Carton Boxes (kg) Used Magazine (kg) estimates Old Newspapers (kg) estimates Glass Bottles (kg)

2012-13 14,160 562,000 134,155 490,941 208,630

2011-12 18,636 569,220 137,089 316,193 186,102

2010-11 19,750 612,640 141,854 327,183 159,918

• using electronic methods of communication where possible. • using envelopes designed for multiple use for internal correspondence. • sending and receiving fax messages electronically. • re-using paper that has been printed on a single side for notetaking or drafting purposes.

* Figures are from SIA’s operations in Singapore

Recycling bins are conveniently located

SIA’s intranet is used as a platform for

Environmental performance

Fuel Efficiency Programme

Fleet Modernisation

in offices and canteens for waste

regular updates to staff. It also provides

on the ground

The UN Intergovernmental Panel on

Programme

with recyclable value such as paper,

informative environmental articles on

In line with SIA’s ongoing efforts

Climate Change (IPCC) estimates

During the year, SIA took delivery

magazines, newspapers and aluminium

topics such as waste minimisation.

to conserve and optimise usage of

that global CO2 emissions from the

of one A330-300, bringing the

resources, overall electricity, water

aviation industry will grow from 2 per

total to 20. One B777-200 was

at our premises is also sorted off-site

Toxic waste management

and paper consumption has improved

cent today to 3 per cent by 2050. SIA

decommissioned.

by the appointed waste collectors for

Toxic industrial waste (TIW) generated

over the years. Details are available

has put in place a comprehensive fuel

recycling purposes.

mainly from our aircraft maintenance

in the following summary of

efficiency programme to mitigate the

SIA’s passenger aircraft fleet had an

activities is labelled and segregated

environmental statistics:

rising CO2 emission levels.

average age of 6 years and 8 months in

cans. The general waste generated

from general waste. A licenced TIW

March 2013, compared to the industry

collector is engaged to remove and

average* of 12 years and 4 months.

treat the waste before final disposal. *Source: Flightglobal, ACAS (Aircraft information and forecast data system) [April 2013]

52

SINGAPORE AIRLINES


53

ENVIRONMENTAL RESPONSIBILITY (continued) Average Age of Aircraft

2012-13

2011-12

2010-11

2009-10

80 140 80 148

74 135 75 163

75 110 71 163

75 98 73 162

(months), 31 March 2013 SIA Passenger Fleet SIA Cargo Freighters SilkAir Industry-wide*

*Source: Flightglobal, ACAS (Aircraft information and forecast data system) [April 2013]

Fuel Productivity

co2 emissions

LTK/AG 20.0

million AG 1,600

17.5 15.0

1.4

14,000

1,400

1.3

13,000

1,300

1.2

12,000

1,200

1.1

11,000

1.0

10,000

0.9

9,000

0.8

8,000

0.7

7,000

0.6

6,000

0.5

5,000

400

0.4

4,000

300

0.3

3,000

200

0.2

2,000

100

0.1

0

0.0

1,000 900 800

10.0

Fuel Productivity

• Adopting other improvements in

Singapore Airlines is committed to

flight operation procedures, such

reducing the impact of climate change

as tailored arrivals and continuous

700 500 5.0

brought about by increased green

descent operations that

2.5

house gases (GHG) in the atmosphere

minimise fuel use without

0.0

by improving the fuel productivity of

compromising safety.

our aircraft operations. Key initiatives in our fuel productivity improvement programme include: • Continual renewal of our aircraft fleet to ensure that the aircraft in operation are as technologically advanced and fuel efficient as possible. • Participating in the ASPIRE programme (more information on the ASPIRE programme is available in the subsequent section). • Adopting flight operation procedures that reduce fuel burn for A380s at Heathrow Airport. SIA’s A380 aircraft departing Heathrow now use less power

• Engaging route-planning procedures that determine the most

600

7.5

08-09

09-10

10-11

11-12

12-13

thousand tonnes 15,000

1,500

1,100 12.5

kg/LTK 1.5

1,000 08-09

09-10

10-11

11-12

12-13

0

Fuel Consumption (All Fleets)

SIA Passenger Fleet (LTK/AG)

CO2 Emissions (All Fleets)

SIA Passenger Fleet (kg/LTK)

SIA Cargo Freighters (LTK/AG)

SilkAir Fleet (LTK/AG)

SIA Cargo Freighters (kg/LTK)

SilkAir Fleet (kg/LTK)

Figures as at March 2013

fuel-efficient routes possible. Aircraft activities

best low-emission technologies are

The noise certification standard in

international discussions on route-

Airframe and engine maintenance

used in new engines. A new standard

ICAO Chapter 4 that was introduced

restructuring to establish new

programmes are in place to enhance

was endorsed in 2004, applicable

on 1 January 2006 for new aircraft

airways for more efficient routings.

operational and fuel efficiency. Regular

to new engines from 2008, which is

designs is more stringent. It is about

engine wash programmes also improve

12 per cent lower than the previous

one third or 10 EPNdB quieter than the

fuel efficiency.

standard and will provide a 40 per cent

Chapter 3 standard. SIA’s A380-800s

• Actively participating in

• Developing performance improvement packages for airframes and engines to reduce airframe drag, thereby improving engine fuel efficiency. • Using lightweight crockery, cargo containers and reducing operating items such as potable water uplifted to minimise the weight of aircraft.

when taking off, saving fuel and

• Employing mobile ground power

emitting less CO2 and NOx while

units and pre-conditioned air

remaining within the airport’s strict

units during long transits and night-

noise procedure guidelines.

stops to reduce usage of auxiliary

reduction in NOx emissions compared

and B777-300ERs are certified with the

Emissions and waste

to the first standard. SIA’s passenger

ICAO Chapter 4 noise standard. Our

management

fleet, SIA Cargo freighters and SilkAir

A330-300s, A340-500s, B777-200s

Aircraft gas emissions

aircraft meet the stringent 2004 ICAO

and B777-300s are certified with the

ICAO sets the international standards

CAEP/6 Emission Standards for NOx.

ICAO Chapter 3 standard for noise,

for levels of NOx, CO2, hydrocarbons

but they also meet the more stringent

and smoke from aircraft engine

Aircraft noise emissions

emissions under ICAO Annex 16,

Today’s aircraft are 50 per cent quieter

Volume II. The NOx emission standard

compared to 10 years ago. Research

has been tightened several times over

initiatives target a further 50 per cent

the past decade to ensure that the

reduction by 2020.

Chapter 4 requirements.

power units.

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55

ENVIRONMENTAL RESPONSIBILITY (continued)

COMMITMENT TOWARDS A SUSTAINABLE FUTURE

Ground emissions

Singapore via Tokyo on 31 January

aviation sector. The group is focused

All new diesel-powered vehicles

2010. Efficiency measures such as using

on accelerating the development,

operating in Singapore must follow

a User Preferred Route (UPR) generated

certification, and commercial use

National Environmental Agency (NEA)

by a flight planning system were

of sustainable aviation biofuels.

requirements to meet the Tier 3 diesel

employed. The aviation authorities in

Currently, SAFUG represents

engine standard. Some of our diesel-

Singapore, the United States and Japan

approximately 32 per cent* of

powered vehicles meet the more

also worked together to ensure optimal

commercial aviation fuel demand.

stringent Tier 4 standard. Likewise,

air traffic conditions. In total, 6 per cent

new petrol-powered vehicles are

less fuel was used compared to a similar

SIA has pledged to advance and

required to meet the Euro II exhaust

flight - 10,686 kg of fuel was saved,

adopt aviation biofuels produced in

emission standard and must be

corresponding to 33,769 kg of

a sustainable manner that: do not

equipped with the three-way catalytic

carbon emissions.

displace or compete with food crops;

converter as part of the NEA’s motor vehicle requirements.

do not threaten biodiversity; do not On 16 May 2011, the first regular ‘city

cause deforestation; minimise the

pair’ flight between Los Angeles and

Environmental Planning

solution is needed under which all

impact of land, water and energy use;

For our existing fleet of vehicles, an

Singapore, SQ37, was launched. The

Risks and Challenges

airlines are treated fairly. SIA shares the

meet or exceed jet fuel standards;

annual inspection is conducted by an

non-stop flight employs enhanced

The airline industry is increasingly

widely held view that policy measures

have lower carbon emissions over

external party to verify that exhaust

gate-to-gate air traffic management

exposed to physical risks, including

on emissions from international

their production lifecycle; and deliver

and sound emission levels meet the

operational procedures to reduce

extreme weather conditions such

aviation should be developed at a

positive socio-economic impacts.

local standards.

fuel burn and carbon emissions. Best

as severe snowstorms and volcanic

global level through ICAO.

practices in air traffic management

eruptions. Such events can cause flight

ASPIRE Programme

such as UPRs, Dynamic Airborne

diversions and cancellations that result

Restrictions on GHG emissions can

preliminary technical challenges,

The Asia and Pacific Initiative to Reduce

Reroute Procedures, 30/30 Reduced

in inconvenience to passengers and

also provide an impetus for the industry

the industry faces the challenge

Emissions (ASPIRE) programme is a

Oceanic Separation, Time-Based Arrival

financial losses to airlines.

to look towards new technologies

of producing aviation biofuels

partnership of air navigation service

Management and Arrival Optimisation

that improve fuel consumption

sustainably on a commercial basis and

providers focused on environmental

which significantly reduce fuel burn

The growing awareness of the impact

and accelerate the development of

at competitive costs. In addition, the

stewardship in the region. Under the

and carbon emissions are also utilised

of climate change and pressure to

alternative fuels such as biofuels.

competitive usage of biofuels with other

‘ASPIRE-Daily City Pair’ programme,

on the flight.

curb GHG emissions continue to pose

regular ‘green’ flights are conducted

Despite overcoming some of the

modes of transport must be considered.

a constraint to industry growth. The

SAFUG

between pairs of airports throughout

SIA is pleased to take another step

imposition of environmental taxes and

SIA believes the use of lower carbon

SIA is committed to working in

the Asia-Pacific region, one of the fastest

towards greener skies by implementing

levies, including schemes such as the

renewable fuels derived from

partnership with government agencies,

growing aviation markets in the world.

these flight procedures on a regular

European Union’s Emissions Trading

environmentally and socially sustainable

biofuel producers and suppliers, and

basis. An average carbon emissions

Scheme, would add to the financial

sources have the potential to meet

other stakeholders to overcome these

The first multi-sector demonstration

saving of 3.8 tonnes is achieved for

burden of airlines and their customers.

the industry’s carbon neutral growth

hurdles. We proactively engage these

green flight under the ASPIRE

each Los Angeles-Singapore

goals as well as lessen the dependence

stakeholders to keep abreast of the latest

programme was SQ11 which was

flight sector.

The EU’s approach offers carriers

on fossil fuels. We are a member of

developments in sustainable biofuels.

operating through hubs closer to

the Sustainable Aviation Fuel Users

Europe an unfair advantage. As

Group (SAFUG) which advances the

aviation is a global business, a global

use of sustainable biofuels for the

operated from Los Angeles to

56

SINGAPORE AIRLINES

*Source: Sustainable Aviation Fuel Users Group website [April 2013] URL: http://www.safug.org/safug-pledge/


57

COMMITMENT TOWARDS A SUSTAINABLE FUTURE (continued) unit usage, more efficient flight procedures, and weight reduction measures, could achieve further reductions in CO2 emissions of up to 3 per cent by 2020. Pillar 3 – Infrastructure Infrastructure improvements present a major opportunity for CO2 reductions in the near term. Full implementation of more efficient air traffic management and airport infrastructure could provide substantial emissions reductions through measures such as the Single European Sky and the Next Generation Air Traffic Management System in the United States.

IATA’s Four-Pillar Strategy

Sustainable aviation biofuels are

SIA supports IATA’s Four-Pillar

among the promising solutions to meet

Strategy which promotes and drives

IATA’s carbon emissions reduction

Pillar 4 – Economic Measures

efforts towards carbon neutral growth

goals. Currently, the primary focus is

Combining the first three pillars is

from 2020:

on biofuels from second generation

critical in meeting the industry’s climate

feedstock crops that do not compete

change objectives in the long run.

Pillar 1 – Technology

with food production and fresh water

However, due to the time required for

Technology has the best long-term

requirements, or cause deforestation

new technologies and infrastructure

prospects to reduce aviation emissions.

and threaten biodiversity. Examples

to be developed, a cost-effective

Examples of recent advances include:

of second generation feedstock crops

economic measure is needed to bridge

revolutionary aircraft designs; new

are jatropha, camelina and algae. Test

the gap. For example, the market-

composite lightweight materials;

flights have demonstrated that the use

based measure (MBM) can be applied

engine advances; and the development

of biofuel from these sources as “drop-

at a global level to prevent a patchwork

of sustainable alternative jet fuels.

in” fuels is safe and technically sound.

of individual and uncoordinated policies

Modifications to the existing fleet

Biofuels can be blended with existing

that could be duplicative in nature

using current technologies, such as

jet fuel in increasing quantities as they

and result in market distortions and

become available.

carbon leakage. Economic measures

winglets and drag reduction, could

should be used to boost research and

result in a reduction of 1 per cent in emissions by 2020.

Pillar 2 – Operations

development as well as the deployment

Improved operational practices,

of new technologies, rather than being

including reduced auxiliary power

utilised in ways that suppress demand.

SUMMARY OF ENVIRONMENTAL STATISTICS Operating Statistics SIA Group Total Group Revenue ($ million) Average Number of Employees Singapore Airlines, SilkAir and SIA Cargo Overall Load (million tonne-km) Overall Capacity (million tonne-km) Overall Load Factor (%) Singapore Airlines Passenger Carried (thousand) Revenue Pax-km (million) Available Seat-km (million) SilkAir Passenger Carried (thousand) Revenue Pax-km (million) Available Seat-km (million) SIA Cargo Cargo and Mail Carried (million kg) Cargo Load (million tonne-km) Cargo Capacity (million tonne-km) Fuel Productivity & CO2 Emissions SIA & SilkAir Fleet and Freighters Fuel Consumption (million AG) Fuel Productivity (LTK/AG) CO2 emissions (thousand tonnes) CO2 emissions (kg/LTK) SIA Passenger Fleet Fuel Consumption (million AG) Fuel Productivity (LTK/AG) CO2 emissions (thousand tonnes) CO2 emissions (kg/LTK) SilkAir Fleet Fuel Consumption (million AG) Fuel Productivity (LTK/AG) CO2 emissions (thousand tonnes) CO2 emissions (kg/LTK) SIA Cargo Freighters Fuel Consumption (million AG) Fuel Productivity (LTK/AG) CO2 emissions (thousand tonnes) CO2 emissions (kg/LTK) Resources * Water Consumption (,000 m3) Electricity Consumption (Gwh) Petrol (,000 litres) Diesel (,000 litres) CO2 emissions (Ground Operations) (tonnes) Paper Consumption – A4 paper (reams)

2012-13

2011-12

2010-11

15,098.2 23,189

14,857.8 22,514

14,524.8 21,997

16,047.3 23,188.4 69.2

15,898.8 23,378.6 68.0

15,576.3 22,515.1 69.2

18,210 93,765.6 118,264.4

17,155 87,824.0 113,409.7

16,647 84,801.3 108,060.2

3,295 5223.1 7,096.3

3,032 4,469.4 5,904.8

2,764 4,039.6 5,285.1

1,144.6 6,763.6 10,661.0 2012-13

1,205.8 7,198.2 11,286.5 2011-12

1,156.4 7,174.0 11,208.5 2010-11

1,506.58 10.60 14,207.55 0.89

1,465.20 10.85 13,817.34 0.87

1,407.85 11.06 13,276.85 0.85

1,293.51 9.97 12,198.24 0.95

1,232.24 10.03 11,620.46 0.94

1,175.83 10.13 11,088.45 0.93

65.54 7.74 618.11 1.22

55.63 7.89 524.58 1.19

50.00 8.06 471.53 1.17

147.52 17.42 1,319.19 0.54 2012-13 268.3 56.9 228 3,161 38,028 64,900

177.33 17.49 1,672.30 0.54 2011-12 222.9 60.5 288 3,309 40,971 66,753

182.02 17.92 1,716.87 0.53 2010-11 253.6 59.9 280 3,376 40,793 58,820

* Figures are from SIA’s operations in Singapore 58

SINGAPORE AIRLINES


59

Registered Address Airline House, 25 Airline Road Singapore 819829 Company Secretary Ethel Tan Tel: 6541 4030 Fax: 6546 7469 Email: [email protected] Investor Relations Tel: 6541 4885 Fax: 6542 9605 Email: [email protected] Public Affairs Tel: 6541 5880 Fax: 6545 6083 Email: [email protected] MCI (P) 178/05/2013 IS20130000732 Singapore Company Registration Number 197200078R

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