Airport city development is a global trend and an essential factor contributing to airport surroundings to become a hub. With a strong support from central and regional government, major airports including Amsterdam Schiphol in Netherland, Hong Kong I...
Airport city development is a global trend and an essential factor contributing to airport surroundings to become a hub. With a strong support from central and regional government, major airports including Amsterdam Schiphol in Netherland, Hong Kong International, Kansai in Japan and Shanghai Pudong in China have completed surrounding area development. In particular, airports in Northeast Asia are competing over hub position prior to 2008 Beijing Olympic Games and 2010 Shanghai Expo.
Incheon International Airport is ranked 10th in international passenger traffic, 3rd in international cargo volume and best airport worldwide in service excellence recognized by AETRA (International Air Transport Association and Airports Council International). However despite outstanding achievements, Incheon International Airport still has a long way to fulfill multi-functional airport city concept in the modern context of hub. Therefore this research is designed to assess the possibility whether Incheon International Airport can become a hub of Northeast Asia with airport city development and analyze its potential. In addition, this study will present strategies with case studies on best practices of global air hubs. The key component of this study which is the hub potential focuses on quantitative measurement in five elements (facilities, service, demand, space and management) for six airports in the region. Based on the analysis, Incheon International Airport ranked 1st in facilities and service, 4th in demand and 6th in space and management. The reason for being 6th in space and management is due to lack of multi-modal access, airport city functionality and weak financial structure caused by financial cost originated from accessive amount of debt and non-profitable asset for having only 40% of government subsidy for 1st phase construction. However by utilizing airport surroundings for airport city development, this will enable active exchange of human and commercial resources with a creation of aviation demand. This will transform non-profitable asset into profitable asset by reducing financial cost and adding value to the economy with more non-aeronautical revenue and improvement in the financial structure. This trend will boost the competency in demand, space and management by showing a great potential for becoming a hub of Northeast Asia.
For the development in airport surroundings incorporates Songdo, Cheong-Ra, Yeongjong and reserved space in the airport perimeter. Airport surroundings development including Songdo area is a long-term plan due in 2020 which does not satisfy timeliness and connectivity with the airport. If neighboring airports in the region take an initiative in the airport city development by becoming a hub marked by 2008 Beijing Olympic Games, this will be a key factor threatening timeliness. Therefore it is important to take the leading position to become a hub in the region. On the other hand, reserved area for development in the airport perimeter has the condition for timely development without any further compensation on land ownership. The area retains reservoir and sea with natural scenary with space available for port, water park, hotel, entertainment park and shopping mall development. In addition, this area is already housing 630,000 pyeong of free trade zone including international business complex and airport logistics park. Therefore if this area incorporates commercial, tourism, leisure and entertainment concept, it can function as the airport city in timely manner. In order to achieve this, government needs to provide necessary infrastructure and offer an attractive incentive system with reduction in tax and utility cost. In addition, Incheon International Airport Corporation needs to develop strategies to proactively attract foreign investment and global multi-national companies. In line with this effort, government needs to make timely decision on its policy, and Incheon International Airport will need to outperform as the economic engine and hub of Northeast Asia.