Aviation in Singapore is a key component of the Singaporean economy in its quest to be the premier transport hub in the Asian region. As a result of a small domestic market, Singapore has emphasised opening up the international market for its own airlines, as well as to allow foreign airlines to establish operations there. Singapore has Air Services Agreements with over 90 countries and territories and has the most liberal aviation policy in Southeast Asia. The Civil Aviation Authority of Singapore, under the Ministry of Transport, seeks to make the country a vibrant air hub, with a high standard of civil aviation, and a wide spectrum of aviation-related businesses and activities like airlines, maintenance, and repair and overhaul (MRO) services, aircraft manufacturing and aviation logistics.
The national carrier of Singapore is Singapore Airlines, which operates a hub at Changi International Airport. Silkair is a wholly-owned subsidiary, and regional airline of Singapore Airlines and operates scheduled passenger services from Singapore to destinations in Southeast Asia, South Asia and China. Partly in response to competition from AirAsia based in neighbouring Malaysia, Singapore-based low-cost airlines only began to operate from the year 2004 with the entrance of Valuair. In rapid succession, two of the largest airlines operating out of Singapore Changi Airport began operating their competing carriers, namely Singapore Airlines' Tiger Airways and Qantas' Jetstar Asia Airways, which merged with Valuair in 2005. Valuair was absorbed by Jetstar Asia in Oct-2014.
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