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Eye Corp wins Changi airport advertising concession

By: Ryan Reuben, Singapore
Published: Dec 07, 2005
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Singapore – The Civil Aviation Authority of Singapore (CAAS) has awarded Australia’s Eye Corp the contract to manage the $10m advertising concession at Singapore Changi Airport from January 1 2006. Eye Corp ousted incumbent Clear Channel and bested fellow contender JCDecaux to clinch the concession, which includes sales and marketing for all static, digital and ambient advertising displays in Terminals 1 and 2 as well at the new low cost terminal -- to opening early 2006 -- and the new landmark Terminal 3 due for opening in 2008.  “Changi Airport is a world class international air hub -- it’s a very exciting time to be involved with such a prestigious airport,” said Mike Tyquin, General Manager – Regional Analysis & Development SE Asia at Eye Corp. “Changi’s standing will be enhanced through the redevelopment programme currently underway, and the new terminal openings will see an expansion of offerings and in this regard Eye will be able to bring the advertising concession to the world standard for which Changi’s other commercial operations are renowned.”  “Our expansion into Singapore will be another demonstration of our quest to be recognised as the leading airport media brand,” added Eye Corp Chief Executive Gerry Thorley. The company operates airport media concessions in Auckland, all major capital cities within Australia, and Jakarta, Surabaya and Bali in Indonesia. Eye Corp, which will manage the business from its newly-established Singapore office, is no doubt celebrating the win, but the Australian outdoor specialist will need to be vicious on costs in order to reap a profit from the meagre profit margins the Changi contract demands -- although the airport advertising concession is a lucrative one, it is a revenue-sharing deal with a high minimum guarantee. In addition, Eye Corp will need to commit to product investment straightaway as most of the airport's scrolling panels are on their last legs and need to be replaced -- they’re not cheap.  Clear Channel, on the other hand, will not be too happy with the news. The company has not been shy to invest in Singapore having had to build and maintain 3,200 bus and taxi shelters islandwide as part of its agreement with the Land Transport Authority (LTA). In addition, the company held the Changi contract through the SARS period which saw a substantial drop in visitor arrivals and hence advertising from March to June 2003. According to Clear Channel insiders, losing the Changi contract will be a blow to its Singapore business although, officially at least, Clear Channel is not worried. “The Changi Airport advertising concession forms a very small part of our overall business,” said Clear Channel Singapore Managing Director Telly Tan. “We’re glad that the result is finally out because now we can channel all our efforts and energy into our bus shelter medium which has great potential for tremendous growth. We sincerely wish Eye Corp good luck and hope that they will be able to help CAAS manage the advertising concession well.” Clear Channel added that none of its staff would be affected by the development -- “our people will be reassigned new job roles and responsibilities,” said Tan. 

The CAAS tender was originally due to have been called late last year, but was postponed due to ongoing renovations at the airport including upgrading work to Terminal 2. The advertising business is exercised in a ‘3+2’ format: three years confirmed, with the option to renew for a further two years. Clear Channel won the concession from the now-defunct Pearl & Dean in 2000.

Companies featured:

  • Civil Aviation Authority of Singapore
  • Eye Corp Pte Ltd

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