Singapore Airlines report FY 2013/14 02-09

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Singapore Airlines report FY 2013/14 02-09
Singapore Airlines
                      02-09                10-14                15-22       23-27             28-35
report   FY 2013/14   About
                      Singapore Airlines
                                           Safety at
                                           Singapore Airlines
                                                                Focus
                                                                on People
                                                                            Supporting
                                                                            Our Communities
                                                                                              Caring for
                                                                                              the Environment
Singapore Airlines report FY 2013/14 02-09
CONTENTS                                                                                                     OVERVIEW

01
CEO’S MESSAGE        “This year we are going further in our sustainability reporting by adopting the new     • Online Booking                                                                            • Online Check-in
                                                                                                                                                                                                                                     This Sustainability Report aims
                     G4 reporting guidelines of the well-respected Global Reporting Initiative (GRI).        • Sales Agent                                                                               • Airport Check-in          to inform stakeholders of
                                                                                                             • Seat Selection
                                                                                                                                                     CES                                                 • Baggage Uplifted          Singapore Airlines about our
                     These will enable us to be more focused in the reporting of the social, environmental                                       RV I                      GR
                                                                                                             • Meal Selection
                                                                                                                                               SE                                  OU                      to Aircraft
                                                                                                                                                                                                                                     sustainability performance in
                     and economic dimensions of our operations.”                                                                                                                        ND               • Meals Prepared
                                                                                                                                          NS                                                               and Uplifted to           a transparent and accountable
                                                                                                                                         O                                                                 Aircraft
                                                                                                                                                                                                                                     manner. It covers issues related

                                                                                                                                                                                         SE
                                                                                                                                    I
                                                                                                                                  AT
                                                                                                                                                                                                                                     to governance, stakeholder

                                                                                                                                                                                             RV
                                                                                                                                    V
                                                                                                                                 ER

                                                                                                                                                                                              ICE
                                                                                                                                                                                                                                     engagement, community

                                                                                                                             RE S
                                                                                                                                                  PRODUCTS        PRODUCT
ABOUT                       SAFETY AT                  SUPPORTING                  CARING

                                                                                                                                                                                                  S
                                                                                                                                                 AND SERVICES   INNOVATION                                                           projects and the environment.
SINGAPORE                   SINGAPORE                  OUR                         FOR THE                                                                      • Cabin Products

AIRLINES                    AIRLINES                   COMMUNITIES                 ENVIRONMENT                                                                                                                                       Through this report, we also hope to
02                          10                         23                          28                                                                                                                                                identify opportunities for improvements
                                                                                                                                                  IN-FLIGHT     ADVERTISING/
                                                                                                                                                  CATERING       MARKETING                                                           to our sustainability management, as well

                                                                                                                             ES

                                                                                                                                                                                              IN-F
                            11                         24                          29                                                              • ICP Chef
                                                                                                                                                                                                                                     as issues that are integral to our business

                                                                                                                                   VIC
                            SIA’s Safety               Community                   Managing our                                                                                                                                      in order to address them effectively

                                                                                                                                                                                                  LI G
                                                                                                                                 ER
                            Performance                Engagement                  Environmental Impact                                                                                                                              and appropriately. We try to integrate

                                                                                                                                                                                             HT
                                                                                                                                    S
                                                                                                                                                                               SE

                                                                                                                                        T
                                                                                                                                         H
                                                                                                                                                     IG                          RV                                                  sustainability throughout our customer
                                                                                                                                                  FL                                                     • Cabin Crew In-flight      experience and engagement process.
                                                                                                                                                                          ES        IC
                                                                                                                                                T
                                                                                                                                             POS                                                           Service
                                                                                                             • Customer                                                                                                              Together with relevant partners within
                                                                                                               Feedback                                                                                  • Meals Served
                                                                                                                                                                                                         • In-flight Entertainment
                                                                                                                                                                                                                                     the process chain, we hope to explore
                                                                                                             • KrisFlyer Miles
                                                                                                               Accrual                                                                                   • In-flight Amenities       ways to improve sustainability across all
04
                                                                                                                                                                                                                                     aspects of our operations.
Route
Network

05
                            FOCUS
                                                                                                             REPORTING PERIOD                                                                                                        GRI GUIDELINES
Fleet Information
                            ON PEOPLE                                                                        This report covers the Financial Year 2013/14 from 1 April 2013 to                                                      Singapore Airlines has moved towards
07                          15                                                                               31 March 2014.                                                                                                          the Global Reporting Initiative’s (GRI)
Corporate Governance                                                                                                                                                                                                                 reporting guidelines version G4,
                            16                                                                               REPORTING SCOPE                                                                                                         where applicable, for this report.
09                          Stakeholder Engagement:
                                                                                                             Information and figures in this report refer to the Parent Airline, excluding subsidiaries
Sustainability at           Employees
Singapore Airlines
                                                                                                             in the Singapore Airlines Group, unless otherwise stated. The ‘$’ sign used in this                                     FEEDBACK
                            20                                                                               report refers to Singapore Dollars unless otherwise stated.
                                                                                                                                                                                                                                     Our stakeholders’ feedback is
                            Stakeholder Engagement:
                                                                                                             REPORTING PROCESS                                                                                                       important to us and we welcome
                            Customers
                                                                                                                                                                                                                                     feedback on this report and any aspect
                                                                                                             Singapore Airlines’ Management Committee, which consists of the Chief                                                   of our sustainability performance.
                            21
                                                                                                             Executive Officer, the two Executive Vice Presidents and Senior Vice Presidents
                            Stakeholder Engagement:
                                                                                                             from all divisions, directs the preparation of the report. The Committee
                            Partners                                                                                                                                                                                                 Please address all feedback to
                                                                                                             endorses the contents of the report, supported by a strategic team of
                                                                                                                                                                                                                                     Vice President Public Affairs, at
                                                                                                             department head-level staff. Information for this report is collected from
                                                                                                             various departments and overseas offices, which are required to confirm the                                             public_affairs@singaporeair.com.sg.
                                                                                                             accuracy and authenticity 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.

                                                                                                             More information about Singapore Airlines Limited is available through our website at:
                                                                                                             http://www.singaporeair.com/en_UK/about-us/ir-landing/ 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
Singapore Airlines report FY 2013/14 02-09
CEO’S
MESSAGE

THIS YEAR WE ARE                        uch has happened since we published our         AS PART OF OUR ONGOING
                                        first comprehensive Sustainability Report
                                                                                        DEVELOPMENT IN THIS AREA, WE
GOING FURTHER IN                        12 months ago.
                              We launched our next generation of in-
                                                                                        WILL BE PROGRESSIVELY EXPANDING
OUR SUSTAINABILITY        flight cabin products that have become the new                THE SCOPE OF OUR REPORTING TO
                          benchmark for premium air travel. We unveiled a new           COVER SUBSIDIARIES, STARTING THIS
REPORTING BY              lounge design that will be applied to all our lounges         YEAR WITH FLEET INFORMATION
ADOPTING THE              globally. We fostered and strengthened partnerships           FOR ALL AIRLINES IN THE SIA GROUP.
                          with more airlines to expand our network reach.
NEW G4 REPORTING          We continued to modernise our fleet and those of
                                                                                            Our sustainability practices are maturing and
                          our subsidiaries. We are setting up a new associate
GUIDELINES OF THE         airline in India. We are partnering with Airbus on            evolving, and this will continue in the years ahead.
                          pilot training. The list goes on.                             As part of our ongoing development in this area, we
WELL-RESPECTED                                                                          will be progressively expanding the scope of our

GLOBAL REPORTING          WE FOSTERED AND STRENGTHENED                                  reporting to cover subsidiaries, starting this year with
                                                                                        fleet information for all airlines in the SIA Group. In
                          PARTNERSHIPS WITH MORE AIRLINES
INITIATIVE (GRI).         TO EXPAND OUR NETWORK REACH.
                                                                                        this year’s report we also detail corporate governance
                                                                                        processes in reference to the revised Code of
THESE WILL ENABLE US                                                                    Corporate Governance issued by Singapore’s Ministry

TO BE MORE FOCUSED            While we continue to invest to enhance our
                          customers’ travel experience, we are also not resting
                                                                                        of Finance.
                                                                                            The operating environment remains challenging for
IN THE REPORTING          on our laurels with respect to sustainability efforts. This   the industry in which we operate, but we will not let up
                          year we are going further in our sustainability reporting     in our pursuit of new processes and practices that help
OF THE SOCIAL,            by adopting the new G4 reporting guidelines of the            us develop as a good corporate citizen.

ENVIRONMENTAL             well-respected Global Reporting Initiative (GRI). These
                          will enable us to be more focused in the reporting of
AND ECONOMIC              the social, environmental and economic dimensions of          GOH CHOON PHONG
                          our operations.                                               Chief Executive Officer
DIMENSIONS OF                 In support of efforts to adopt these more                 Singapore Airlines
OUR OPERATIONS.           comprehensive guidelines, we have made significant
                          progress in our sustainability journey over the past
                          year. We have mapped out a Sustainability Strategy
                          which can be found in the pages of this report, for
                          example; the Management Committee that I lead
                          has also been appointed as the highest authority to
                          provide strategic oversight of this Strategy and our
                          overall sustainability reporting approach.

01   SINGAPORE AIRLINES                                                                                              SUSTAINABILITY REPORT FY 2013/14
Singapore Airlines report FY 2013/14 02-09
ABOUT
SINGAPORE AIRLINES

SINGAPORE                 With one of the world’s youngest fleets in the air, a network spanning six
                          continents, and the Singapore Girl as an iconic symbol of quality customer
                                                                                                                 MISSION
AIRLINES HAS COME         care and service, we have earned a reputation as an innovative market leader,          STATEMENT                            VALUES
A LONG WAY SINCE          combining quality products with excellent service.

OUR FOUNDING                 We have made a habit of leading the way, and along the way developed a
                          reputation as an industry trendsetter. Our ever-growing list of industry-leading       Singapore Airlines is a global       We hold firm to our six Core Values, which we strongly believe are key
IN 1972. NOW AN           innovations includes the following firsts:
                                                                                                                 company dedicated to providing       to the SIA mission:
INTERNATIONALLY-             First to offer free headsets,               First to offer audio and video on       air transportation services of the
RESPECTED BRAND,             a choice of meals and free                  demand (AVOD) capabilities              highest quality and to maximising
                                                                                                                                                        PURSUIT OF EXCELLENCE                   CONCERN FOR STAFF
WE HAVE BECOME               drinks in Economy Class,                    on KrisWorld in all classes, in         returns for the benefit of its         We strive for the highest               We value our staff and care for
                             in the 1970s.                               October 2001.
ONE OF THE                                                                                                       shareholders and employees.            professional standards in our work      their well-being. We treat them
                                                                                                                                                        and aim to be the best in everything    with respect and dignity and seek
WORLD’S LEADING                                                                                                                                         we do.                                  to provide them with appropriate
                             First to introduce satellite-based          First to fly the A380, from Singapore
CARRIERS WITH AN             in-flight telephones, in 1991.              to Sydney, on 25 October 2007.                                                                                         training and development so that
ADVANCED FLEET                                                                                                                                          SAFETY                                  they can lead fulfilling careers.

OF AIRCRAFT.                 First to involve a comprehensive
                                                                                                                                                        We regard safety as an essential part
                                                                                                                                                        of all our operations. We maintain      INTEGRITY
                             panel of world-renowned chefs, the
                                                                                                                                                        and adopt practices that promote the    We strive for fairness in all
                             International Culinary Panel,
                                                                                                                                                        safety of our customers and staff.      our business and working
                             in developing in-flight meals,
                                                                                                                                                                                                relationships.
                             in 1998.
                                                                                                                                                        CUSTOMER FIRST
                                                                                                                                                        Our customers are foremost              TEAMWORK
                                                                                                                                                        in our minds all the time.              We work with pride as a worldwide
                              Singapore Airlines Limited (“the Company”) is a limited liability company
                                                                                                                                                        We go the extra mile to exceed          team to achieve success together.
                          incorporated in the Republic of Singapore which is also the place of domicile.
                                                                                                                                                        their expectations.
                          The Company is listed on the Singapore Exchange Securities Trading Limited
                          (“SGX-ST”) and is a subsidiary company of Temasek Holdings (Private) Limited,
                          incorporated in the Republic of Singapore.
                              The registered office of the Company is at Airline House, 25 Airline Road,
                          Singapore 819829.
                              The principal activities of the Group consist of passenger and cargo air
                          transportation, engineering services, training of pilots, air charters and tour
                          wholesaling and related activities. The principal activity of the Company consists
                          of passenger air transportation.
                              Singapore Airlines is a member of Star Alliance and the International Air
                          Transport Association.

02   SINGAPORE AIRLINES                                                                                                                                                                                   SUSTAINABILITY REPORT FY 2013/14
Singapore Airlines report FY 2013/14 02-09
HISTORICAL
TIMELINE OF SIA

1947 1968 1971 1989 1999 2011
MAY                                  FRENCH COUTURIER   JUNE                                       Singapore Airlines becomes the first
                                                                                                   airline to operate a Boeing 747-400
                                                                                                                                             The KrisFlyer programme is launched,
                                                                                                                                             allowing First, Business and Economy
                                                                                                                                                                                        MARCH
                                                        MSA’s first transcontinental flight on a                                                                                        Singapore Airlines launches three-
                                     PIERRE BALMAIN     Boeing 707 takes off for London.
                                                                                                   commercial flight across the Pacific.     Class customers to earn mileage credits.
                                                                                                                                                                                        times-weekly flights to Sao Paulo, its
                                                                                                                                                                                        first South American destination.
                                     DESIGNS THE
The maiden flight of Malayan
Airways Limited (MAL), operated by
an Airspeed Consul, takes off from
Singapore Kallang Airport.
                                     SARONG KEBAYA
                                     UNIFORM
                                     FOR MSA AIR
                                                        1972                                                                                 2007
                                                                                                   1995
                                     STEWARDESSES.      MSA SPLITS

1966
                                                                                                                                             SINGAPORE AIRLINES IS THE
                                                        INTO SINGAPORE                                                                       FIRST AIRLINE TO OPERATE
                                                        AIRLINES (SIA) AND                                                                   THE AIRBUS A380 SUPERJUMBO,
                                                        MALAYSIAN AIRLINE                                                                    THE LARGEST PASSENGER PLANE
MAY                                                     SYSTEM (MAS).                              APRIL                                     IN THE WORLD.
                                                        THE SINGAPORE                              KrisWorld, Singapore Airlines’
                                                                                                   advanced in-flight entertainment
                                                        GIRL IS BORN.                              system, is launched across all classes.

                                                        1981                                                                                                                            2014
                                                        JULY                                                                                                                            Today, Singapore Airlines serves
                                                                                                                                                                                        over 200 destinations in more than
MAL, which was renamed Malaysian                        Singapore Airlines moves to the                                                                                                 50 countries, including services by
Airways Limited in 1963, becomes                        new Singapore Changi Airport from                                                                                               Singapore Airlines Cargo, SilkAir and
Malaysia-Singapore Airlines (MSA).                      Paya Lebar.                                                                                                                     codeshare partners.

03   SINGAPORE AIRLINES                                                                                                                                                                              SUSTAINABILITY REPORT FY 2013/14
Singapore Airlines report FY 2013/14 02-09
ABOUT SINGAPORE AIRLINES

              ROUTE NETWORK

              As at 31 March 2014, the passenger route network for Singapore Airlines and
              its regional subsidiary SilkAir covers 100 destinations in 36 countries.
                                                                                                                                                                                                                                                                              SILKAIR ROUTES

                                                                                                                                                                                                                                                                                                                                 Hangzhou
                                                                                                                                                                                                                                                                                                                              Chongqing Wuhan
                                                                                                                                                                                                                                                                                                             Chengdu
                                                                                                                                                                                                                                                                                                                                       Changsha
                                                                                                                                                                                                                                                                                  Kathmandu                  Kunming                      Xiamen
                                                                                                                                                                                                                                                                                                      Mandalay                     Shenzhen
                                                                                                                                                                                                                                                                                         Kolkata                  Hanoi
                                                                                                                                                                                                                                                                                                       Chiang Mai
                                                                                                                                                                                                                                                                                      Visakhapatnam
                                                                                                                                                                                                                                                                                                  Yangon          Danang
                                                                                                                                                                                                                                                                               Hyderabad
                                                                                                                                                                                                                                                                              Bangalore Chennai                Siem Reap
                                                                                                                                                                                                                                                                                                                                         Kalibo Cebu
                                                                                                                                                                                                                                                                               Coimbatore                                 Phnom Penh
                                                                                                                                                                                                                                                                                                     Koh Samui
                                                                                                                                                                                                                                                                                    Kochi            Phuket                                              Davao
                                                                                                                                                                                                                                                                              Thiruvananthapuram     Langkawi
                                                                                                                                                                                                                                                                                                         Penang                          Kota Kinabalu
                                                                                                                                                                                                                                                                                                      Medan
                                                                                                                                                                                                                                                                                                      Kuala Lumpur                Kuching    Manado
                                                                                                                                                                                                                                                                                                       Pekanbaru SINGAPORE                  Balikpapan
To Houston                                                                                                                                                                                                                                                                                                 Palembang
To N
     ew Yo
              rk JF                                                                                                                                                                                                                                                                                                 Bandung            Surabaya
                   K
                                                                                                                                                                                                                                                                                                                                Solo     Lombok

                                                                                                                                                                                                                                                                                                                                                          Darwin
                                 Copenhagen                   Moscow
                        Manchester

                        London
                                          Amsterdam                                                                                                                                                                                                    NORTH
                            Brussels          Frankfurt   EUROPE                                                                                                                                                                                      AMERICA
                             Paris             Munich                                                                              ASIA                                                                                                                                                              To Frankfurt
                                     Zurich                                                                                                                                                                                                                Chicago                                   To Moscow
                                         Milan                                                                                                                                                                                                                                New York JFK
                                                              Istanbul                                                                                                                                                           San Francisco
                                      Barcelona
                                                  Rome                                                                                              Beijing                                                                                                     Dallas-Fort
                                                                                                                                                                      Seoul
                                                                                                                                                                                                                                        Los Angeles             Worth
                                                                                                                                                                          Nagoya        Tokyo Narita
                                                                                                                                                                         Osaka          Tokyo Haneda
                                                                                                                                                                  Fukuoka                                                                                  Houston
                                                                                                                                                     Nanjing
                                                          Cairo                                         New Delhi                                                  Shanghai
                  lo
              Pau                                                                       Sharjah
   To
      S  ao
                                                                           Riyadh
                                                                                             Dubai                      Dhaka
                                                                                                                                          Guangzhou
                                                                                                                                                         Xiamen
                                                                                                                                                                    Taipei                                    PACIFIC OCEAN                                                                        ATLANTIC OCEAN
                                                                  Jeddah         Abu Dhabi                           Kolkata                Hanoi
                                                                                                     Ahmedabad                                           Hong Kong
                                                                                                      Mumbai
                                                                                                                                                                  Manila
                                                                                                                      Chennai                  Bangkok
                                                                                                     Bangalore
                                                 AFRICA                                                                                            Ho Chi Minh City
                                       Lagos                                                               Colombo
                                                                                                                                                              Bandar Seri Begawan
                                                                                                        Male                    Kuala Lumpur
                                                                                                                                                                                                                                                                                   SOUTH
                                                                           Nairobi                                      SINGAPORE
                                                                                                                                                                                                                                                                                  AMERICA
                                                                                                                                         Jakarta
                                                                                                                                                              Denpasar                                                                                                                                         To Barcelona
                                                                                             INDIAN OCEAN
                                                                                                                                                                                                                                                                                              Sao Paulo

                                                            Johannesburg
                                                                                                                                                                         AUSTRALIA
                                                                                                                                                                                                   Brisbane

                                                                                                                                                     Perth
                                         Cape Town                                                                                                                                                Sydney
                                                                                                                                                                             Adelaide
                                                                                                                                                                                                                   Auckland
                                                                                                                                                                                 Melbourne

                                                                                                                                                                                                                  Christchurch
              04       SINGAPORE AIRLINES                                                                                                                                                                                                                                                                               SUSTAINABILITY REPORT FY 2013/14
Singapore Airlines report FY 2013/14 02-09
ABOUT SINGAPORE AIRLINES

FLEET INFORMATION                                                                                                                                                                             Singapore Airlines has 103 aircraft in its fleet. As at 31 March 2014,
                                                                                                                                                                                              the average age of its aircraft is six years and nine months, while the
                                                                                                                                                                                              average age of its regional subsidiary SilkAir’s aircraft is five years
                                                                                                                                                                                              and 11 months. Both airlines’ fleets are amongst the youngest and
                                                                                                                                                                                              most fuel-efficient in the world.
As At 31 March 2014

SINGAPORE AIRLINES PASSENGER FLEET
Average age of passenger fleet : 6 years 9 months

 01.                                                                    04.                                                                       05.                                           07.

 02.                                                                    03.                                                  06.                                                                08.

Airbus                                      Airbus                      Boeing                      Boeing                          Boeing                          Boeing                            Boeing                           Boeing
A380-800                                    A330-300                    777-300ER                   777-300R (retrofitted)          777-200ER (retrofitted)         777-200R (retrofitted)            787-10                           777 (total)
In Fleet    On Order                        In Fleet   On Order         In Fleet   On Order         In Fleet		                      In Fleet		                      In Fleet		                        On Order                         In Fleet    On Order

19 5                                        26         8                22         5                7                               9                               11                                30                               58          5
Cabin Configuration 1                       Cabin Configuration         Cabin Configuration         Cabin Configuration             Cabin Configuration             Cabin Configuration
Suites        :   12                        Business   : 30		           First      :   8            First    : 8                    Business : 26                   Business : 38
Business      :   60                                                    Business   :   42           Business : 50                   Economy : 245			                Economy : 228
                                                                  02.
                                            Economy    : 255
Economy       :   399                       Total      : 285            Economy    :   228          Economy : 226			                Total    : 271                  Total    : 266
Total         :   471                                                   Total      :   278          Total    : 284
In Fleet      :   11                                                                                                                Boeing 777-200ER                Boeing 777-200
Cabin Configuration 2
                                                                                                                                    In Fleet		                      In Fleet
Suites        :   12                        Airbus
Business
Economy
              :
              :
                  86
                  311
                                            A350-900 XWB                                                                            4                               5
Total         :   409                       On Order
In Fleet      :   8                                                                                                                                                 Cabin Configuration
                                            70                                                                                      Cabin Configuration
                                                                                                                                    Business : 30                   Business : 30
                                                                                                                                    Economy : 255			                Economy : 293
                                                                                                                                    Total    : 285                  Total    : 323

                              01.                                 03.                         04.                             05.                             06.                            07.                           08.
05     SINGAPORE AIRLINES                                                                                                                                                                                                                SUSTAINABILITY REPORT FY 2013/14
Singapore Airlines report FY 2013/14 02-09
ABOUT SINGAPORE AIRLINES

FLEET INFORMATION                                                  (continued)

As At 31 March 2014

SINGAPORE AIRLINES CARGO FREIGHTER FLEET                                 SILKAIR FLEET                                                                                 SCOOT FLEET
Average age of fleet : 12 years 3 months                                 Average age of fleet : 5 years 11 months                                                      Average age of fleet : 15 years 8 months

 01.                                                                       02.                                                    04.                                   06.                                              07.

                                                                           03.                                                    05.                                                                                    08.

Boeing                                     Airbus                         Airbus                                    Boeing                      Boeing            Boeing                                     Boeing            Boeing
747-400 Freighter                          A320 (total)                   A319                                      737-800                     737 Max 8         777-200                                    787-8             787-9
In Fleet   Total                           In Fleet                       In Fleet		                                In Fleet   On Order		       On Order          In Fleet		                                 On Order          On Order

9          9                               16                             6                                         2          21               31                6                                          10                10
                                           Cabin Configuration 1          Cabin Configuration                       Cabin Configuration                           Cabin Configuration 1
                                           Business   :   12              Business      :8                          Business   : 12                               ScootBiz    :   32
                                           Economy    :   138             Economy       : 120                       Economy    : 150                              Economy     :   370
                                           Total      :   150             Total         : 128                       Total      : 162                              Total       :   402
                                           In Fleet   :   14                                                                                                      In Fleet    :   5

                                           Cabin Configuration 2          Boeing                                                                                  Cabin Configuration 2
                                                                          737 (total)
                                           Business   :   16                                                                                                      Business    :   30
                                           Economy    :   126                                                                                                     Economy     :   293
                                           Total      :   142             In Fleet       On Order		                                                               Total       :   323
                                           In Fleet   :   2                                                                                                       In Fleet    :   1
                                                                          2              52

                               01.                                 02.                                 03.                                04.               05.                              06.                        07.                           08.
06     SINGAPORE AIRLINES                                                                                                                                                                                                       SUSTAINABILITY REPORT FY 2013/14
Singapore Airlines report FY 2013/14 02-09
ABOUT SINGAPORE AIRLINES

CORPORATE GOVERNANCE

The Singapore Airlines Board and Management are committed to continually enhancing shareholder value by maintaining high           Audit Committee (AC)
standards of corporate governance, professionalism, integrity and commitment at all levels, underpinned by strong internal         The purpose of the AC is to assist the Board of Directors in fulfilling its oversight responsibilities by reviewing:
controls and risk management systems.                                                                                              • Financial information disclosed to shareholders and regulatory authorities
                                                                                                                                   • Adequacy and effectiveness of the Group’s material controls, including financial, compliance, information technology and
This Report sets out the Company’s corporate governance processes, with specific reference to the guidelines of the revised           risk management controls
Code of Corporate Governance issued by the Ministry of Finance in Singapore in May 2012.                                           • Audit scopes, plans and reports of the external and internal auditors
                                                                                                                                      o Interested Person Transactions
                                                                                                                                      o Whistle-blow programme instituted by the Company
The Singapore Airlines Board consists of Chairman Mr Stephen Lee, CEO Mr Goh Choon Phong and seven directors from
                                                                                                                                      o Any material loss of funds, significant computer security incidents and legal cases
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   Board Compensation and Industrial Relations Committee (BCIRC)
and monitoring the Group’s performance; approving major acquisitions and fund-raising exercises; and ensuring the Group’s          The Board Compensation and Industrial Relations Committee assumes the role of a Remuneration Committee.
compliance with all laws and regulations as may be relevant to the business.
                                                                                                                                   The BCIRC reviews and recommends for the Board’s approval the general framework of remuneration for the Board and
The Board currently comprises the following members:                                                                               Relevant Key Management Personnel. The BCIRC also recommends the specific remuneration packages for each Director
Mr Stephen Lee Ching Yen 		                Chairman/ Non-executive                                                                 and Relevant Key Management Personnel and administers the Company’s EVA-based Incentive Plan, Strategic Incentive Plan,
Mr Goh Choon Phong 		                      Director and CEO/ Executive                                                             Performance Share Plan and Restricted Share Plan for senior executives. The award of shares to senior executives is based
Mr Gautam Banerjee 		                      Independent/ Non-executive                                                              on organisational and individual performance. Professional advice is sought by the BCIRC, as it deems necessary, in the
Dr William Fung Kwok Lun 		                Independent/ Non-executive                                                              development and execution of the remuneration plan for the Company’s senior executives. For FY 2013-14, Carrots Consulting
                                                                                                                                   Pte Ltd was engaged as a remuneration consultant to provide professional advice on human resource matters. Further details
Mr Hsieh Tsun-Yan 		                       Independent/ Non-executive
                                                                                                                                   on Remuneration Matters are available on pages 51 and 55 of the Annual Report under the section Remuneration Matters.
Mrs Christina Ong 		                       Independent/ Non-executive
Dr Helmut Gunter Wilhelm Panke 		          Independent/ Non-executive
                                                                                                                                   The BCIRC plays an important role in providing appropriate guidance to Management in maintaining harmonious industrial
Mr Jackson Peter Tai 		                    Independent/ Non-executive                                                              relations. The Company’s three unions, namely ALPA-S, representing pilots, AESU, representing Administrative Officers, and
Mr Lucien Wong Yuen Kuai 		                Non-independent/ Non-executive                                                          SIASU, representing General Staff (including Cabin Crew), hold regular meetings with Management and Chairman of BCIRC.

*Full profiles of Directors are available on pages 6 to 9 of the Annual Report.                                                    Executive Committee (ExCo)
                                                                                                                                   The ExCo oversees the execution by Management of the overall strategy, policies, directions and guidelines set by the Board
LENGTH OF SERVICE                                                                                                                  for the SIA Group. It also reviews and makes recommendations to the Board on the annual operating and capital budgets and
Newly appointed Directors serve an initial term of three years, after which they are considered for re-nomination for another      matters relating to the Group’s wholly-owned subsidiaries. The ExCo is authorised to approve transactions beyond a designated
term(s). Their re-nominations are subject to the recommendations of the Chairman of the Board and the Nominating                   materiality threshold and to make decisions on routine financial, operational and administrative matters. It also functions as the
Committee. New Directors appointed in the year are subject to retirement and re-election by shareholders at the next Annual        Share Buy Back Committee of the Company.
General Meeting after their appointment. All new appointments and re-elections require the approval of the Special Member,
                                                                                                                                   Nominating Committee (NC)
the Minister for Finance.
                                                                                                                                   The NC considers and makes recommendations to the Board on the appointment and re-election of Directors. It also
                                                                                                                                   determines the independence of Directors. The NC’s recommendations are based on a review of the range of expertise, skills
Management briefs new Directors on the Company’s business and strategic directions, as well as governance practices. The           and attributes of current Board members and the needs of the Board, taking into account the Company’s future business
Company conducts orientation programmes and site visits for new Directors and arranges for Directors to be updated on new          direction, the tenure of service, contribution and commitment of each Board member. Board rejuvenation is a guiding principle
laws and regulations, as well as changing commercial risks and industry developments, as deemed appropriate. Formal letters        in determining the need for new appointees to the Board.
are issued to newly-appointed Directors upon their appointment, including details of their duties and obligations as Directors.
For FY 2013-14 Board Members attended briefings on the challenges facing the airline industry, as well as other related topics     Board Safety and Risk Committee (BSRC)
conducted by global airline industry leaders and experts.                                                                          The functions of the BSRC include:
                                                                                                                                   • ensuring that systems and programmes in the SIA Group comply with regulatory requirements and accord with the best
BOARD COMMITTEES                                                                                                                      practices of the aviation industry
                                                                                                                                   • reviewing regular reports on safety performance
Five Board Committees have been formed to assist the Board in the execution of its responsibilities. They comprise members of
                                                                                                                                   • reviewing accident investigation findings and recommendations
the Board delegated with authority to carry out specific functions and duties.                                                     • advising Management and reporting to the Board on safety issues
                                                                                                                                   • overseeing the risk governance framework and risk management system, including reviewing key risks and controls put in
                                                                                                                                      place by Management

07   SINGAPORE AIRLINES                                                                                                                                                                                                                  SUSTAINABILITY REPORT FY 2013/14
Singapore Airlines report FY 2013/14 02-09
ABOUT SINGAPORE AIRLINES

CORPORATE GOVERNANCE                                                      (continued)

*Details of membership in Board Committees and attendance at Board and Committee meetings can be found on pages 60                   The Company’s commitment to corporate transparency and investor relations was recognised in 2012, when Singapore Airlines
and 61 of the Annual Report.                                                                                                         was inducted into the Hall of Fame in the Most Transparent Company Award Category at the 13th Investors Choice Awards
                                                                                                                                     presented by the Securities Investors Association of Singapore (“SIAS”).
Evaluating Board Performance
For FY 2013-14, the NC had engaged an independent global executive search firm not affiliated to the Company or any of               RISK ASSESSMENT AND MANAGEMENT
its Directors, to assist in conducting a formal evaluation of the SIA Board and its Board Committees. The process involved           The Board of Directors is responsible for Risk Governance, which includes oversight of the Enterprise-wide Risk Management
questionnaires which provided opportunities for feedback from the Directors. The evaluation confirmed that the SIA Board and         Framework, and corresponding processes. Through the Risk Management Process, all risks, including economic, environmental
its Board Committees were generally functioning effectively and performing well, within a highly competitive and challenging         and socio-political, are identified and managed accordingly. The effectiveness of the Risk Management Framework and Risk
environment. The performance of individual Directors was reviewed by the Chairman and the NC, while the Chairman’s                   Management Process is reviewed by the Board Safety & Risk Committee on behalf of the Board of Directors. The Board Safety
performance was reviewed by the rest of the Board.                                                                                   & Risk Committee reviews risks and controls quarterly on behalf of the Board of Directors. In addition, the Board of Directors
                                                                                                                                     reviews the risks annually.
The NC has reviewed the contribution by each Director taking into account their listed company board representations and
other principal commitments. The NC and the Board are of the view that, setting a maximum number of listed company board             The Risk Management Process provides for the identification and management of risks from ground up, including from staff
representations a Director should have is not meaningful, as the contribution of each Director would depend on their individual      working in contact with customers/consumers, suppliers/agents and regulatory bodies. The needs and expectations of these
circumstances, including whether they have a full time vocation or other responsibilities. Notwithstanding the number of listed      external parties are taken into consideration in identifying and managing the risks.
company board representations and other principal commitments which the Directors held, the NC was of the view that they were
able to devote sufficient time and attention to the affairs of the Company.                                                          The Risk Management Process also requires senior management to provide a top-down perspective to the identification/
                                                                                                                                     management of risks, so that corporate and shareholder needs and requirements are also taken into consideration.
INTERNAL CONTROLS AND INTERNAL AUDIT
SIA Internal Audit is an independent department that reports directly to the Audit Committee. It performs regular evaluations of     ETHICS AND INTEGRITY
the SIA Group’s internal controls, financial and accounting matters, compliance, business and financial risk management policies     As part of our commitment to corporate governance principles, Singapore Airlines attaches a very high priority to ethical
and procedures, and ensures that internal controls are adequate to meet the Group’s requirements. SIA Internal Audit is a            business conduct in the markets in which we operate. We engage employees, contractors and agents on the basis that their
member of the Singapore chapter of the Institute of Internal Auditors (IIA) and meets the Standards for the Professional Practice    integrity in the conduct of their work is critical to our business and reputation.
of Internal Auditing set by the IIA.
                                                                                                                                     SIA implemented a whistle-blowing programme called “Policy on Reporting Wrongdoing” in October 2005, for staff to raise
The Control Self Assessment (CSA) Programme, which was established during financial year 2003-04, provides a framework               concerns about possible improprieties in matters of financial reporting or any other matter, in confidence. Staff are reminded
for Management to obtain assurance on the state of internal controls. The CSA Programme requires operating departments’              through our internal Intranet and a mandatory e-learning training module that under the Policy on Reporting Wrongdoing, they
management to review and report annually on the adequacy of their respective units’ control environment. Internal Audit              could report suspected matters of wrongdoing affecting the Company, either through email at Ethics_Hotline@singaporeair.
performs independent and random reviews during the year to validate the results of these self assessments.                           com.sg or via telephone 93875667. The Audit Committee has reviewed and is satisfied with the adequacy of this programme.

COMMUNICATION WITH SHAREHOLDERS                                                                                                      We also welcome external comments, questions and thoughts about our Company’s ethics and integrity, to be sent through the
Singapore Airlines believes in timely and consistent disclosure of pertinent information to enable a transparent assessment          same email and telephone contacts.
of the Company’s value. The Company values dialogue with shareholders, and holds analyst and media briefings when
announcing half-yearly and year-end results. Full transcripts of the proceedings are made available on SGXNET and our                We also have a Suppliers’ Code of Conduct, which we expect all our suppliers to adhere to. Based on the principles of the
Company’s website at www.singaporeair.com/investor.                                                                                  United Nations Global Compact with respect to Human Rights, Labour, the Environment and Anti-Corruption, the Code’s
                                                                                                                                     contents were developed to be consistent with our business values. More information can be found in the section – Stakeholder
All financial results, as well as price-sensitive information, are released in a timely manner through various media, including      Engagement: Partners.
press releases posted on the Company’s website and disclosure via SGXNET. The Company’s website is an important source
of information for shareholders and the investment community. Quarterly results announcements, news releases, presentation
slides, monthly operating statistics, annual reports, sustainability reports and other key facts and figures about the Company are
available on the Investor Relations website.

The Investor Relations Department meets with analysts and investors on a regular basis through investor conferences and
roadshows, as well as ad-hoc meetings and teleconferences. A dedicated investor relations email and hotline are maintained for
the investing community to reach out to the Company for queries.

08   SINGAPORE AIRLINES                                                                                                                                                                                                                 SUSTAINABILITY REPORT FY 2013/14
ABOUT SINGAPORE AIRLINES

SUSTAINABILITY AT
SINGAPORE AIRLINES

OUR SUSTAINABILITY STRATEGY                                            For our second year of our wider sustainability reporting,           MATERIALITY ASSESSMENT
                                                                   we have formalised a Sustainability Strategy for the first time.
Reporting on our sustainability practices is not new to us, as     We believe that this strategy will not only enable us to retain our      We have conducted a materiality assessment to identify
we had been producing an annual Environment Report since           leadership position and fulfill the terms of our mission statement,      sustainability issues that are pertinent to our business, which
the 2001/02 financial year. However, we recognise the need         it will also empower us to effectively contribute to the areas           we are focusing on for our Sustainability Report. Going
to widen the scope of our reporting to stakeholders to make        and markets in which we operate. With this in mind, we seek to           forward, we aim to expand the materiality assessment to
our operations more sustainable.                                   constantly develop as a responsible corporate citizen.                   include the sustainable practices of our subsidiaries, so as
                                                                       We will continue to refine our sustainability framework over time.   to identify potential opportunities and create long-term
                                                                                                                                            benefits for the SIA Group and stakeholders.

                                                                                                                                                                                SUPPORTING COMMUNITIES             CUSTOMER FOCUS
                                                                                                                                                                                  We practice good corporate       We are committed to offering
                                                                                                                                                                                citizenship and contribute and     our customers the best travel
Customers:                                                                                                   Safety is an essential part                                           invest in the communities in    experience through product and
                                                                                                                                                                                              which we operate     service innovation, our modern
We are committed to                                                                                          of our operations and
                                                                                                                                                                                                                   fleet and extensive network
offering our customers                                                                                       we constantly strive to
the best travel                                                                                              improve safety practices
experience through
product and service
innovation, our modern
fleet and extensive
network                                                                                                                                                         SUPPLIERS                                                                            ENVIRONMENT
Shareholders:                                                    SAFETY                                                                              We treat our suppliers                                                                          We are committed to
We maximise returns for                                                                                                                                    with respect and                                                                          environmental sustainability
                                                                                                                                                   emphasise fairness in our                                                                         and ensure that our
long-term profitability,
                                                                                                                                                    relationships with them                                                                          operations are carried out
with the aim of creating
                                                                                                                                                                                                                                                     in a responsible manner
sustainable shareholder
value
                                                                             MANAGING                                                                                                                     MATERIAL
Staff:                                 STAKEHOLDER
                                                                           ENVIRONMENTAL                                                                                                                  ASPECTS OF
We value our staff
                                       ENGAGEMENT                                                                                                                                                         SINGAPORE
and care for their well                                                        IMPACT                                                                     SHAREHOLDERS                                                                               EMPLOYEES
being and development                                                                                                                                                                                     AIRLINES
                                                                                                                                                              We maximise                                                                            We value our employees
Suppliers:                                                                                                                                                 returns for long-                                                                         and care for their well
We treat our suppliers                                                                                                                                    term profitability,                                                                        being and development
with respect and                                                                                                                                             with the aim of
                                                                                                                                                       creating sustainable
emphasise fairness                                       SUPPORTING                                                                                      shareholder value
in our relationships
                                                       OUR COMMUNITIES
with them

                                                                                                                                                                                                       SAFETY      GOVERNANCE
                                                                                                                                                                                     Safety is an essential part   We are committed to
We practice good                                                                                            We are committed                                                         of our operations and we      continually maintaining
corporate citizenship and                                                                                   to environmental                                                       constantly strive to improve    high standards of corporate
contribute and invest in                                                                                    sustainability and ensure                                                     our safety practices     governance, professionalism,
the communities in which                                                                                    that our operations
                                                                                                                                                                                                                   integrity and commitment at all
we operate                                                                                                                                                                                                         levels, underpinned by strong
                                                                                                            are carried out in a
                                                                                                                                                                                                                   internal controls and risk
                                                                                                            responsible manner                                                                                     management systems

09    SINGAPORE AIRLINES                                                                                                                                                                                                                               SUSTAINABILITY REPORT FY 2013/14
Safety at
Singapore Airlines
SAFETY AT SINGAPORE AIRLINES

SIA’S SAFETY
                                                               We believe that it is every employee’s          management. We subscribe to              SAFETY & HEALTH POLICY
                                                               responsibility to work towards a                the Just Culture principles when         We place the greatest importance
                                                               strong and positive safety culture and          handling reported incidents and          on the safety of our customers and

PERFORMANCE
                                                               we have put in place Flight Safety and          accidents. This refers to a way of       employees and will do our utmost
                                                               Safety and Health policies to achieve           safety thinking in which there is an     to provide and maintain a safe and
                                                               that goal. SIA’s Flight Safety policy is        atmosphere of trust for incidents        healthy work environment. We:
                                                               founded on the premise that:                    and safety-related information to be
                                                                                                               reported freely so that lessons can         Strive to anticipate and eliminate
                                                                  We will consistently provide quality                                                     hazards that may result in personal
                                                                                                               be learnt and improvements made.
                                                                  training to our employees.                                                               injury or illness and/or loss or
                                                                                                               The culture supports learning and
                                                                  Our employees are proficient and             sharing, and is necessary to ensure         damage to property and equipment.
                                                                  comply with applicable regulations           safe operations.                            Take responsible steps to provide the
                                                                  and standards.                                                                           best possible care in the maintenance
                                                                                                               Our safety management systems
                                                                  Our equipment and operating                  deal with safety issues in a                of equipment and facilities.
                                                                  systems are well maintained and in           comprehensive and responsive                Instill and promote safety
                                                                  good working condition.                      manner, and are able to inform,             consciousness among our employees
                                                                  We support and promote a strong              educate and strengthen our safety           to prevent accidents and injuries.
                                                                  safety culture and continuous                values effectively.
                                                                  improvement in terms of safety

                                                                                                                    TARGETS         ACTUAL

                                                                High Risk or Severe Incidents                       0               2

                                                                Flight Incident Report Rates (per 1,000 flights)    below 1.51      1.14

                                                                IATA Operational Safety Audit (IOSA)                Y               6th IOSA completed in January 2014

                                                                Lost time injury frequency rate (LTIFR)             -               i) SIA ground injury = 0.7 per million manhours
                                                                                                                                    ii) Cabin Crew in-flight injury = 11.7 per million manhours

                                                                Line Operations Safety Audit (LOSA) by TLC          Every 4 years   3rd LOSA completed in December 2013
                                                                (The LOSA Collaborative), Klinect Group L.L.C.

SAFETY IS ONE OF SIA’S CORE VALUES. IN OUR DAILY OPERATIONS,    Departmental & Corporate Risk                       Quarterly       Reviewed quarterly

THE SAFETY OF OUR CUSTOMERS AND EMPLOYEES IS OUR FIRST AND      Register (Operations)

FOREMOST PRIORITY.
                                                                Accident Crisis Management Exercise                 1               Crisis exercise carried out in October 2013

11   SINGAPORE AIRLINES                                                                                                                                             SUSTAINABILITY REPORT FY 2013/14
SAFETY AT SINGAPORE AIRLINES

SIA’S SAFETY
PERFORMANCE

SAFETY IS AN ESSENTIAL PART OF ALL                               Staff health initiatives                                                                                CABIN SAFETY OBSERVATIONS (CSO)
                                                                 Audiometric tests were conducted for relevant staff who are                                             The CSO programme was put in place to allow us to have
OUR OPERATIONS. ALL EMPLOYEES                                    exposed to noisy working environments in Engineering &                                                  a better understanding of the level of cabin safety on
ARE COLLECTIVELY RESPONSIBLE

                                                                                                                                                          N
                                                                 Flight Operations Divisions. Full attendance of nominated                                               our flights. This also enables us to assess and review the

                                                                                                                                                OM ION
                                                                                                                                                       IO
                                                                 staff was recorded.                                                                                     effectiveness of the safety procedures currently in place.
FOR SAFETY AND SECURITY. WE HAVE

                                                                                                                                                    OT
                                                                                                                                              PR C AT
                                                                                                                                                                         Employee observers from selected departments go on
ALSO PUT IN PLACE A WIDE RANGE                                   GROUND/RAMP INCIDENT PREVENTION (GRIP)

                                                                                                                                                                 OV
                                                                                                                                                                         flights to observe how crew perform their safety duties.

                                                                                                                                         A N EDU
                                                                 PROGRAMME
OF POLICIES AND PROCEDURES

                                                                                                                                                                    E
                                                                                                                                                                         The observations are then collated and shared with Cabin

                                                                                                                                            D

                                                                                                                                                                  RS
                                                                 The SIA Ground Ramp Incident Prevention (GRIP) programme                            SAFETY              Crew Management and crew members. Action plans, where

                                                                                                                                                                   IG
TO ENSURE THE SAFETY OF OUR                                                                                                                        MANAGEMENT

                                                                                                                                                                    HT
                                                                 focuses on preventing ground/ramp incidents at our stations.                                            appropriate, are followed up on.
                                                                                                                                                    ACTIVITIES
CUSTOMERS AND COLLEAGUES.                                        The objective of the GRIP programme is to:
                                                                                                                                                                         SAFETY SURVEYS
                                                                    Raise awareness of safety practices on the ground.
                                                                                                                                                   STAFF                 SIA carries out a company-wide online Safety Survey with air
                                                                    Reduce ramp incidents.                                                       FEEDBACK                crew every two years. The Safety Survey assesses a number
                                                                    Raise safety competency levels.                                                                      of areas, such as safety management, violations observed
                                                                                                                                                                         during operations and readiness of our crew to report safety
                                                                    Measure safety performance standards for continual                                                   occurrences or issues. It provides an overall assessment of the
                                                                    improvement.
                                                                                                                                    THE KEY SAFETY PROGRAMMES            safety climate and culture in our operational environment, as
                                                                     Through the GRIP programme, observations are carried                                                well as any safety concerns of our aircrew.
SIA SAFETY PROGRAMME                                                                                                                ARE CARRIED OUT ACCORDING TO
                                                                 out during ramp operations to review compliance with ramp
The SIA Safety Programme serves to strengthen safety as          safety regulations and practices without imposing punitive         THREE MAIN THRUSTS. WE RUN A         EMPLOYEE FEEDBACK
a core value and to promote greater understanding and            action on offenders. The aim of these observations, carried        SERIES OF PROGRAMMES UNDER           We place emphasis on using employee feedback to
                                                                 out by supervisory employees, is to identify weak and unsafe                                            improve the safety environment in the workplace and
awareness of safety concepts and the Company’s efforts                                                                              EACH THRUST TO MANAGE SAFETY
towards safety management. This gives employees a                practices for effective correction through focused education                                            encourage employees to identify hazards and report
                                                                 and safety promotion. It also serves to measure our safety         ACTIVELY AS PART OF THE SIA          incidents, no matter how minor, to create awareness and
better appreciation of the roles they play, as well as the
contributions they can make towards higher safety standards
                                                                 levels on the ramp.                                                SAFETY MANAGEMENT SYSTEM.            highlight risks. Procedures are put in place for employees to
                                                                     The observations help identify common safety lapses                                                 report such incidents for both flight and occupational safety.
in the Company. The programme covers: Introduction to
                                                                 to allow corrective action to be taken early. The GRIP                                                      SIA’s safety governance structure consists of five groups
Safety, Effective Safety Management, Safety Culture and
                                                                 programme has helped to inculcate a higher level of safety                                              to guide safety management:
Our Approach and Commitment to Safety. Every employee            awareness among employees.
is enrolled in the Safety Programme and takes a refresher                                                                                                                   Board Safety and Risk Committee (BSRC).
assessment test every three years.                               FLIGHT DATA ANALYSIS PROGRAMME (FDAP)                                                                      Occupational Safety, Health and Environment Committee
                                                                                                                                                                            (OSHE).
                                                                 Flight data is captured in Quick Access Recorders (QAR) in
RISK MANAGEMENT TRAINING COURSES
                                                                 aircraft. This data, capturing much of the aircraft’s flight and                                           Air Safety Committee (ASC).
One of the key components of the Workplace Safety and            systems performance, is downloaded from the QAR and used
                                                                                                                                                                            Safety, Security & Environment (SSE).
Health (Risk Management) Regulations is risk assessment          by engineering maintenance staff, as well as flight crew, to
of workplaces and the reduction of risks to an acceptable        support safe operations.                                                                                   Divisional safety departments/Safety Action Groups (SAG).
level. To equip employees with the necessary knowledge               The data for every flight is screened, focusing on any                                                 We also have a comprehensive list of quantitative
in carrying out hazard identification and risk assessment, a     deviations from the norm. Where such deviations are                                                     and qualitative performance indicators to measure
risk management course was conducted on 23 July 2013.            identified, the data is further analysed and, where necessary,                                          the effectiveness of our efforts. These indicators are
Twenty-nine staff from various divisions as well as staff from   corrective and/or preventive measures are taken.                                                        reviewed on a quarterly basis and are benchmarked
SIA Cargo, Scoot, Singapore Flying College and Tradewinds                                                                                                                against industry standards.
attended the training.

12   SINGAPORE AIRLINES                                                                                                                                                                                     SUSTAINABILITY REPORT FY 2013/14
SAFETY AT SINGAPORE AIRLINES

SIA’S SAFETY
PERFORMANCE

SAFETY & SECURITY WEEK, 2013                                       INITIAL PILOT TRAINING

SAFETY AND SECURITY IS AN
EVERYDAY CONCERN FOR EVERYONE
IN SIA. THIS WAS HIGHLIGHTED IN A
                                                                   01                     02                     03
                                                                   Ab-initio              Second Officer         Initial Command
SERIES OF ACTIVITIES HELD DURING                                   pilot training         training to qualify    Training for

THE WEEK FROM 9 TO 13 SEPTEMBER                                    conducted by           as First Officers:     First Officers to
                                                                   Singapore Flying       Cadet pilots           become qualified
2013 DEDICATED TO THE SUBJECT.                                     College: Training      who complete           Captains: First
                                                                   cadet pilots           their initial pilot    Officers who meet
                                                                   with no flying         training undergo       the standards
                                                                   experience to          a conversion           to qualify for
“Global Issues, Local Perspective” was the theme of our Safety     achieve an ATPL        training               command are
and Security Week in 2013, stressing how we should be              (Airline Transport     programme to           put through a
aware of global industry developments such as international        Pilot’s Licence)       qualify to fly the     rigorous training
terrorism and aircraft accidents. We should then review our        rating.                Airbus A330 or         programme
training and operational practices in light of these issues, and                          Boeing 777. They       before they are
apply proactive, adaptive and localised solutions to enhance                              then undergo a         promoted to

                                                                   04
safety and security.                                                                      structured Second      Captain.
    At the launch event, awards and citations were                                        Officer training
presented to individuals and teams who displayed                   Conversion             programme.
outstanding safety and security awareness in the course of         training to qualify    On successful
their work. The event included a safety and security forum
where speakers shared insights and challenges. During the
                                                                   pilots for an
                                                                   aircraft rating: Any
                                                                                          completion, they
                                                                                          are appointed as
                                                                                          First Officers in
                                                                                                                 06                  RECURRENT TRAINING
                                                                                                                                     Recurrent Training for pilots: Conducted twice a year in the full-
                                                                                                                                                                                                             DEVELOPMENTAL TRAINING
                                                                                                                                                                                                             SIA has a Pilot Development Unit that takes charge of
week, other promotional and awareness activities were held         pilot who moves                               Initial SEP
for Cabin Crew, Engineering, Flight Operations, SIA Cargo          to a different fleet   SIA, after which       (Safety and         flight simulator, the recurrent training programme enhances             development training programmes for pilots. Most of
and SilkAir to drive home the Safety and Security message          must undergo           they operate as        Emergency           the proficiency of our pilots in handling and managing                  these courses are conducted by in-house presenters
among employees.                                                   conversion             qualified co-pilots.   Procedures)         abnormal and emergency situations. Recurrent training also              and facilitators, with some courses run by external
                                                                   training.                                     training is         allows our pilots to practice manual flying of aircraft under           consultants. We also conduct Instructor Pilot Training
OPERATIONAL SAFETY                                                                                               required for all    different situations and environmental conditions.                      Programmes for instructor candidates.

For our pilots, operational safety is key. To ensure the highest
standards of flight operations, our pilots undergo rigorous                               05
                                                                                          Initial CRM
                                                                                                                 pilots.             Proficiency in manual flying is a key skill for pilots in the face of
                                                                                                                                     increasing automation in modern flight decks.
training with continuous refresher courses to ensure they are                                                                        Recurrent SEP Training: Conducted every year, the training
at the top of their game.                                                                 (Crew Resource
                                                                                                                                     ensures our pilots’ knowledge is refreshed and tested. It also
                                                                                          Management)
                                                                                                                                     ensures they remain competent in aircraft and cabin safety
                                                                                          training is required
                                                                                                                                     and emergency procedures.
                                                                                          for all pilots.
                                                                                                                                     Recurrent CRM Training: This is conducted for pilots once
                                                                                                                                     every two years. In addition, annual recurrent CRM training is
                                                                                                                                     conducted jointly for pilots and cabin crew.
                                                                                                                                     Recency Training: This is conducted for any pilot who has
                                                                                                                                     been absent from flying for more than 35 days.

13   SINGAPORE AIRLINES                                                                                                                                                                                                                      SUSTAINABILITY REPORT FY 2013/14
SAFETY AT SINGAPORE AIRLINES

SIA’S SAFETY
PERFORMANCE

OTHER TRAINING                              performance through teaching,              AIRCRAFT MAINTENANCE                                            ISO 9001:2008        ISO 14001:2004     BS OHSAS           FOOD SAFETY
                                            coaching and role modelling. It also                                                                       Quality              Environmental      18001:2007
Within the framework of mandatory
                                            supports the transition of our pilots
                                                                                       SIA COMPLIES WITH RECOMMENDED                                   Management           Management         Occupational
                                                                                                                                                                                                                  SIA is committed to serving in-flight
training, SIA also conducts other                                                                                                                                                                                 meals that meet the highest levels
training for pilots, deemed useful or       in their new roles as they advance         SAFETY MANAGEMENT SYSTEM (SMS)                                  System for the       System for the     Health & Safety    of food safety and hygiene. We have
necessary in light of our operating         through the ranks, from cadet pilots       PRACTICES BY THE CIVIL AVIATION                                 Provision of         Provision and      Management
                                                                                                                                                                                                                  a policy of not using Monosodium
                                             to instructors.                                                                                           Technical Support    Management         System for
experience or recent events or
                                                 In addition, this mentoring
                                                                                       AUTHORITY OF SINGAPORE (CAAS).                                  for SIA’s Aircraft   of Aviation and    Provision and
                                                                                                                                                                                                                  Glutamate (MSG) in our freshly
incidents by other airlines (evidence-                                                                                                                                                                            prepared meals as far as possible
                                            framework provides opportunities                                                                           Acquisition and      Engineering        Management
based training). Every year our staff                                                                                                                                                                             - although traces of MSG may be
                                            for our senior pilots to develop                                                                           Disposal, Aircraft   Support Services   of Aviation
from Flight Crew Training attend major                                                 The CAAS SMS elements mirror those prescribed by the                                                                       found in commercially available,
                                            their coaching, mentoring and                                                                              Maintenance          to SIA; and        Engineering
pilot training conferences and seminars                                                International Civil Aviation Organization (ICAO) in the ICAO                                                               pre-packaged food products. Our
                                                                                                                                                       Activities, and                         Support Services
held by industry organisations and          communication skills.                                                                                                                                                 caterers ensure that food sources
                                                                                       Safety Management Manual.                                       Engineering                             to SIA.
aircraft manufacturers to gain insight           The goal of the mentoring                                                                                                                                        are from licenced and accredited
                                                                                                                                                       and Spares
into new and innovative training            programme is to develop our pilots            Additionally, our Engineering division has been accredited                                                              establishments which conform to
                                                                                                                                                       Management;
methodology and to share training           to their full potential, enhance safety    by TUV SUD PSB Pte Ltd, a global testing, certification,                                                                   requirements of relevant regulatory
                                            attitudes and behaviours by building       inspection and training provider, in the following aspects:
experiences within the industry.                                                                                                                                                                                  authorities, as well as the Hazard
    In addition to recurrent training and   on their professional values, and                                                                                                                                     Analysis and Critical Control
developmental training, every pilot         propagate SIA’s organisational             PASSENGER SAFETY                                                                                                           Points (HACCP) and International
undergoes a minimum of three checks a       core values.                               All cabin crew undergo training courses                                                                                    Organization for Standardization (ISO).
year - two Base Checks in the full-flight                                              that inculcate safety and security                                                                                              Locally-manufactured items are
                                            FATIGUE RISK MANAGEMENT
simulator to demonstrate competency                                                    awareness and focus on safe work                                                                                           procured only from suppliers with an
                                            SYSTEM (FRMS)
in manual flying and in handling and                                                   habits. From the earliest stages of their                                                                                  AVA Factory Grading B and above
managing abnormal and emergency             SIA IS AN ACTIVE                           flying career, cabin crew are educated                                                                                     (in the case of Singapore), or the
procedures, as well as one Line Check                                                                                                                                                                             equivalent (in the case of overseas
in the aircraft to assess competency in
                                            PARTICIPANT IN THIS                        on the importance of balancing service
                                                                                       with safety and security. They also learn                                                                                  countries). The Quality Assurance team
operating a regular flight in accordance    PROGRAMME, WHICH                           about the importance of situational and                                                                                    conducts factory audits, especially for
with company policies and standard
                                            LOOKS AT ISSUES                            safety awareness, as well as teamwork                                                                                      high risk food materials, apart from
operating procedures.                                                                  and effective communication. Cabin                                                                                         regular sampling laboratory tests and
    This continues throughout the           RELATED TO PILOT                           crew undergo Safety and Emergency                                                                                          random quality checks on incoming
pilot’s career and a pilot will visit the   FATIGUE TO ENHANCE                         Procedures (SEP) training, which our                                                                                       raw materials.
full-flight simulator at least once every                                              pilots undergo as well, and are involved
three months either for a training
                                            SAFETY AND ENSURE                          in the Fatigue Risk Management System
session or a check. This ensures            OPTIMAL OPERATING                          (FRMS) programme to enhance safety
that a pilot’s knowledge, flying skills
                                            LEVELS OF OUR CREW.                        and ensure optimum rest is available
and cockpit management skills are                                                      for our crew. Resources such as videos,
continuously practiced, refreshed                                                      circulars, campaigns and various
and updated. Another key initiative in                                                 communication sessions are used to
                                            Crew rest facilities on our aircraft are
our pilot development is the launch                                                    promote safe work habits and increase
                                            carefully evaluated to ensure proper
of the pilot mentoring programme                                                       crew awareness on workplace safety.
                                            rest is available for our crew who are
in 2012. This mentoring framework
                                            on duty.
aims to further improve our pilots’

14   SINGAPORE AIRLINES                                                                                                                                                                                                       SUSTAINABILITY REPORT FY 2013/14
Focus on
People
FOCUS ON PEOPLE

STAKEHOLDER
ENGAGEMENT:
EMPLOYEES
                                                                                                                                                SIASU:
                                                                                                        PERCENTAGE BREAKDOWN                    Graded/junior staff and cabin crew in SIA Group of
                                                                                                        OF WORKFORCE (REGION)
                                                                                                                                                Companies fall under this representative body. About 61% of
                                                                                                        1.02% Americas        2.65% Europe      them are members of SIASU.
                                                                                                                                                   SIA and these union bodies adopt a collaborative
                                                                                                                                    North
                  As a global airline, SIA is dedicated to                                              86.81% Headquarters   3.17% Asia        problem-solving approach in our engagements. Regular
                  providing air transportation services of
                                                                                                                                                monthly meetings are held between management and the
                  the highest quality. With an unyielding                        PERCENTAGE             2.46% Southeast
                                                                                                              Asia            2.20% Southwest
                                                                                                                                    Pacific
                                                                                 BREAKDOWN OF                                                   unions to address staff and operational issues.
                  commitment to fleet modernisation,
                                                                                 WORKFORCE              1.69% West  Asia                           SIA’s Chairman and Senior Management meet the unions
                  product and service innovation, as well as                                                  & Africa
                                                                                 (GENDER)
                  market leadership, we are proud to be one                                                                                     in quarterly luncheon sessions to discuss the outlook of the
of the world’s most respected travel brands.                                                                                                    Company as well as issues relating to labour-management
    Our success would not have been possible without the                                                                                        relations. Union leaders are also invited to Company
efforts of our people. We recruit dynamic individuals from                                                                                      functions, such as retirement and long service awards
diverse backgrounds and are committed to providing
                                                                                                                                                ceremonies, and business meetings.
our employees with equal opportunities to achieve their
                                                                                                                                                   Some of the agreements concluded for FY 2013/14
full potential.
                                                                                                                                                include the following:
    In 2014, we were awarded the title of Singapore’s most
attractive employer at the Randstad Awards for the third                                                                                           New AESU Collective Agreement effective 1 April 2013 for
year running. The Award recognises organisations which                                                                                             3 years
Singaporeans want to work for most (for 2013).
                                                                   PERCENTAGE BREAKDOWN                                                            Service Increment 2013 with AESU & SIASU effective 1 July 2013
                                                                   OF WORKFORCE (GENDER)
OUR DIVERSE WORKFORCE                                                                                                                              Service Increment 2013 with ALPA-S effective 1 January 2013
As at 31 March 2014, our employee strength was 14,181, with        Contract     Permanent
                                                                                                                                                   The Company also recently worked in collaboration
a 1.1 per cent decrease over the previous year. Of this, 30 per                  18% Female
                                                                   33% Female                                                                   with SIASU to launch the Workforce Productivity Initiative
cent of employees are ground employees, 55 per cent are
                                                                                                                                                - Towards Optimal Productivity (TOP) programme for our
cabin crew and 15 per cent are pilots.                             10% Male      39% Male
                                                                                                   PERCENTAGE                                   Singapore-based ground administrative employees. TOP
                                                                                                                                                puts in place a framework that embraces a performance-
INDUSTRIAL RELATIONS                                                                            BREAKDOWN OF
We work closely with the Airline Pilots Association Singapore                                                                                   based culture and a developmental framework that
                                                                                                   WORKFORCE
(ALPA-S), Air Transport Executive Staff Union (AESU) and                                                                                        recognises and rewards good performance.
Singapore Airlines Staff Union (SIASU) to ensure that fair and                                        (REGION)
sustainable wage settlements and employment terms are                                                                                           EMPLOYEE CODE OF CONDUCT
provided to employees. We have a total of three collective
                                                                                                                                                We encourage all employees to embrace and exemplify our
agreements in place with the unions.
                                                                                                                                                core values, i.e. pursuit of excellence; safety; customer first;
                                                                                                                                                concern for staff; integrity; and teamwork, in the course of
ALPA-S:
This is the representative body for airline pilots in Singapore.                                                                                their work and dealings with other parties. These core values
About 97% of the pilot population is a member of ALPA-S.                                                                                        are constantly reflected in our employees’ induction and on-
                                                                                                                                                boarding programmes.
AESU:                                                                                                                                              All employees are also expected to adhere to an
This is the union body for staff in SIA Group of Companies                                                                                      employees’ code of conduct (or staff regulations) which is
who are executives and above. About 48% of this population                                                                                      found on our corporate Intranet.
is part of AESU.

16   SINGAPORE AIRLINES                                                                                                                                                             SUSTAINABILITY REPORT FY 2013/14
FOCUS ON PEOPLE

STAKEHOLDER ENGAGEMENT:
EMPLOYEES

EMPLOYEE COMMUNICATIONS AND ENGAGEMENT
                                                                                                                                                                                                   OUR PEOPLE REPRESENT A KEY
We make use of multiple channels to communicate our
latest news and happenings to our people. Examples of our
                                                                                                                                                                                                   COMPETITIVE ADVANTAGE AND
internal communication channels include:                                                                                                                                                           WE PLACE A STRONG EMPHASIS
     Outlook, our in-house magazine, which is published on a                                                                                                                                       ON THE DEVELOPMENT OF
     monthly basis.                                                                                                                                                                                OUR EMPLOYEES. WE INVEST
     Our corporate Intranet site which can be accessed by all
                                                                                                                                                                                                   SIGNIFICANT RESOURCES EACH
     employees. The different divisions (e.g. Cabin Crew, Flight
     Operations, Sales and Marketing) have their own portals to                                                                                                                                    YEAR TO TRAIN OUR PILOTS, CABIN
     disseminate information specific to their areas of work.                                                                                                                                      CREW AND GROUND EMPLOYEES.
     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 which broadcast company-
     related videos and news.
                                                                   TRAINING
   One of the main forms of regular feedback is the
Organisational Climate Survey (OCS) that we conduct once
                                                                             Onboarding            As part of the onboarding                                      continuous pilot training                                         specific customer groups
every two years. The purpose of the survey is to gather
                                                                                                   programme for AOs, the                   Technical             programmes are in place to                 Cabin Crew             such as young children,
employees’ feedback on employee engagement and                                                                                              Crew Training                                                    Training
                                                                                                   SIA Mentorship Scheme has                                      enhance their operational                                         the elderly and mobility-
workplace issues.
                                                                                                   been ongoing and continues                                     and flying skills.                                                challenged individuals, as
   The fourth instalment of the OCS was conducted in               New administrative
                                                                                                   to stand as a unique          We conduct all required              In addition, we offer        Our cabin crew members           well as techniques and skills
January 2013. Towers Watson, a US-based global research and        officers (AOs) attend
                                                                                                   opportunity for newly hired                                    a mentoring framework                                             for communicating with and
consulting company, was engaged to conduct the survey. The         induction and orientation                                     regulatory training for                                           undergo a 15-week-long
                                                                                                   employees to engage with                                       for all ranks of pilots as                                        relating to customers.
feedback from these surveys will be used to identify areas for     programmes soon after                                         our pilots and ensure that                                        basic training programme
                                                                                                   senior leaders, providing                                      well as online learning                                               This area of training equips
improvement and implement organisation-wide action plans.          joining. The objective of the                                 our training programmes                                           which comprises
                                                                                                   access for new employees                                       programmes in our                                                 cabin crew with skills to
                                                                   programmes is to provide                                      meet not only our training                                        classroom and on-the-
                                                                                                   to the rich resources
                                                                   them with an overview of the                                  objectives but are approved      e-learning portal SKIES.         job training. It includes a      better understand and
                                                                                                   and wisdom of SIA’s top
                                                                   Company and the functions                                     by the regulatory authorities.   This mentoring framework         wide variety of modules          meet the needs of a wide
                                                                                                   leadership. Through the
                                                                   of the various divisions.                                          Apart from mandated         is an important facet of their   such as fundamentals             range of customers.
                                                                                                   course of a year, the AO
                                                                       Besides learning how                                      training, we conduct             continuing development           of social etiquette,                 In line with our focus on
                                                                                                   has opportunities to ask
                                                                   key policies and company                                      development training             and is another way that          personal grooming, meal          safety and security, cabin
                                                                                                   questions, hear insightful
                                                                   strategies have developed                                     programmes for pilots of         we invest in the careers         service procedures, food         crew are also trained in
                                                                                                   stories and personal
                                                                   and evolved over time,                                        all ranks, from Cadet Pilots,    and personal growth of           knowledge and wine               security, safety and first
                                                                                                   experiences, and become
                                                                   the programme provides                                        Second Officers and First        our pilots. More details         appreciation courses.            aid procedures, including
                                                                                                   more closely integrated
                                                                   a good opportunity for                                        Officers to Captains and         on our flight operations             Cabin crew are also taught   cardiopulmonary resuscitation
                                                                                                   into the SIA family and
                                                                   new employees to meet                                         Instructors. During the          training can be found in the     passenger handling skills,       (CPR), during their basic
                                                                                                   work culture.
                                                                   others in the Company.                                                                         Operational Safety section.                                       training programme.
                                                                                                                                 course of their careers,                                          including methods of handling

17     SINGAPORE AIRLINES                                                                                                                                                                                                             SUSTAINABILITY REPORT FY 2013/14
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