Global air transportation market is continuously growing and expected to grow in the future. The competition in the market is also intensified by unification, airline alliance and active market participation of LCC, etc.
In case of Korea, Incheon I...
Global air transportation market is continuously growing and expected to grow in the future. The competition in the market is also intensified by unification, airline alliance and active market participation of LCC, etc.
In case of Korea, Incheon International Airport have positioned the top of the world in ASQ in 6 consecutive years. The members of world's airport leading group are visiting to learn the excellent airport operating procedure of Incheon Airport. In addition, the third phase construction is on track to handle the demand for the future preemptively and to function the northeast Asia's hub airport.
Neighboring countries invest very much to compete in the market too. In particular, China laid out airport development plan China's 12th five-year plan 2011-2015. This plan shows that China will construct 56 new airports, expand 91 airports and move 16 airports with investing 650 billion US Dollar in this period.
Each air route is an independent market in air transportation business. Opening a new air route is determined only when enough profit can be guaranteed to be made. For the last 5 years, 11 domestic airports's cumulated deficit recorded over 2 billion US dollars in Korea. Therefore new airport must not be built by regional self-centeredness and politics without enough proved demand.
On this study, we review the time to build the 2nd gateway airport in Korea. We show that the capacity of Kim-hae airport will be exceeded in 2027 and that of Incheon airport in 2030. New airport at south-east region of Korea is required for the residents in year of 2027.
It is expected that building a new 2nd gateway airport in Korea costs over 90 billion US dollar. Therefore we have to make decisions after reviewing precedents and validity in details.