Ministry of Land, Infrastructure and Transport Extends Airport Facility Fee Reduction to Support Aviation Industry Cooperation

[Asia Economy Reporter Yoo In-ho] The Ministry of Land, Infrastructure and Transport announced on the 30th that, after discussions with Incheon International Airport Corporation and Korea Airports Corporation, it will extend the reduction of airport facility usage fees to support airlines and ground handling companies facing ongoing difficulties due to the prolonged impact of the novel coronavirus infection (COVID-19).

So far, the government, in cooperation with related ministries, had announced a plan to reduce or defer airport facility usage fees until the end of this year to minimize the damage to the aviation industry caused by COVID-19.

Based on this government support plan, the aviation industry has made self-help efforts to minimize the scale of deficits by maintaining employment of workers as much as possible, expanding domestic flights, and improving the revenue structure focusing on cargo.

However, since international passengers, which account for about 62.4% of airline sales, are virtually in a suspended operation state (a 97% decrease compared to the previous year), without additional government support, it is difficult to maintain the aviation industry ecosystem, including employment stability for workers.

Accordingly, the government and Incheon and Korea Airports Corporations have prepared and implemented additional support measures considering the uncertain recovery outlook of COVID-19 and the difficult management conditions of the aviation industry.

Through the ‘Support Plan for Employment, Management Stability, and Competitiveness Enhancement in the Aviation Industry’ announced on August 27, the reduction of airport facility usage fees for the aviation industry will be extended until the first half of next year. This includes a 10?20% reduction in landing fees and a 100% reduction in parking and apron usage fees.

As a result, an additional reduction of approximately 45.7 billion KRW is expected to be applied from January to June 2021. Including the existing support amount, a total reduction effect of 121 billion KRW in airport facility usage fees is anticipated.

Separately from the extension of the airport facility usage fee reduction period, incentives to recover cargo and passenger demand will also be implemented.

Incheon Airport Corporation plans to continue a 100% reduction in lighting fees, which have a high benefit ratio for cargo aircraft, next year as well, following this year, to support the expansion of cargo demand.

Korea Airports Corporation plans to support the revitalization of regional airports by reducing landing fees, parking fees, and lighting fees by up to 100% for three years for new domestic and international routes and increased flights.

Kim Sang-do, Director of the Aviation Policy Office at the Ministry of Land, Infrastructure and Transport, said, “The government, airport corporations, and the aviation industry are working together to find ways to overcome COVID-19,” adding, “Along with direct support such as the reduction of airport facility usage fees, we plan to actively explore and promote various possible alternatives.”

This content was produced with the assistance of AI translation services.