Incheon International Airport prepares for LCCs, confirms IPO plans

In his first interview since being appointed President & CEO of Incheon International Airport Corporation (IIAC), Mr Jae Hee Lee, stated that IIAC is considering preparing to attract LCCs by constructing an LCC terminal and providing incentive schemes, subject to LCC market demand.

In an exclusive interview in the July 2005 edition of The Centre for Asia Pacific’s flagship publication, Aviation Analyst-Asia Pacific, Mr Lee stated, “although the LCC market in Korea, China and Japan has not yet been developed, it has a huge potential for growth. Depending on the success of LCCs in this region, the LCC industry will achieve significant growth in the market”.

IIAC is also targeting after 2008 for privatisation, “when the environment for investment is ripe” and the second phase construction project has been completed, according to Mr Lee.

On the topic of liberalisation and aviation access, Mr Lee stated the situation of air traffic rights and liberalisation is a “complex issue”. “From the airport’s perspective, liberalisation of air services agreements is quite attractive. On the other hand, the airport also needs to work together with airlines serving the airport as a hub. Therefore IIAC is ready to collaborate with airlines for mutual growth and prosperity”.

“In addition, liberalisation in North Asia is a key topic of interest. I believe that it will stimulate supply and demand of the aviation industry by facilitating growth and development of the region”, said Mr Lee in the Aviation Analyst-Asia Pacific report.

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