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Business

Incentives for Passengers

Incentive Guidelines & Application Procedures
Effective Period

From March 25th of 2018 until otherwise announced by a policy change.

Type and Details of Incentives
인센티브 항목 및 내용
Type of Incentives Details Payment Method
New Airlines · (New Routes) 100% exemption of landing charges for two years
· (Existing routes) 100% exemption of landing charges for one year
· (Common) Up to USD 50,000 for advertising expenses support
Deduction shall be applied when levying charges in the following month. (advertising expenses shall be negotiated separately)
New Destinations · (Incumbents) 100% exemption of landing charges for one year
· (Common) Up to USD 50,000 for advertising expenses support
Increased flight frequencies Peak Hours · 50% return of landing charges incurred by the annual net increase in departing flights
- Departing flights between 07:00 and 22:59 (Based on ATD)
- Total payment limits: KRW 3 billion (the payment shall be made in line with the payment ratio (%) set for each airline in case of exceeding the limits)
Incentive payment shall be paid separately at the beginning of the following year.
Non-peak Hours · 100% return of landing charges incurred by the annual net increase in departing flights
- Departing flights between 23:00 and 06:59 (Based on ATD)
- Total payment limits: KRW 5 billion (the payment shall be made in line with the payment ratio (%) set for each airline in case of exceeding the limits)
Strategic Destinations · 100% exemption of landing charges for two years for new airlines or Increased flight frequencies of strategic destinations.
- Target routes: All cities in North America, Latin America, Europe, Oceania, and Africa, that require a flight distance of over 6,000km from Incheon Airport
Deduction shall be applied when levying charges in the following month.
Transfer Performance Contribution · KRW 10 million (basic payment) x [transfer sharing rate for each airline (%) x Y-O-Y increase in transfer rate(%)]
- Transfer sharing rate: An airline's number of annual transfer passengers/total number of annual transfer passengers using Incheon Airport
- Increase in transfer rates: An airline's transfer rate for the corresponding year (%) - transfer rate for the previous year (%)
※ Payment limits: KRW 4 billion
Incentive payments can be substituted for transfer promotion points (30%).
(Airlines will be consulted to decide upon the use of points, especially to ensure their primary use for STPC transit hotel, food, beverage, GDS ads assistance, etc.)
Performance Enhancement · KRW 5,000 x Y-O-Y increased number of transfer passengers

Refer to the attachment for detailed application procedures.

Application Procedures for Incentive Payment
Application and Payment Procedures

Airlines that wish to participate in the incentive program must submit their application and all required official documents as outlined below to Incheon Airport Corporation in advance. Airlines that fail to submit their application or required documents by the deadline are not eligible for the incentive program.

Application Procedures for Incentive Payment
Items New Airlines /Destinations, Increased Flight Frequencies, Strategic Destinations Transfer
Application Period and Procedures Apply for incentives (No later than 10 working days prior to commencing service)

Operate flights

Check flight performance
Check whether the payment criteria are met)

Calculate and settle incentives
Apply to participate in the incentive program
(during the period specified at the beginning of the year)

Institute measures to increase the number of transfer passengers

Check theannual transfer performance (during the first quarter of the following year)

Payment is made in cash (70%) and converted into transfer promotion points (30%).
Required Documents
Download
① One(1) copy of Application for the (Passenger) Airline Incentive Program (Form1)
② One(1) copy of Operation Plan(Form 2)
③ One(1) copy of license of operation
④ One(1) copy of business registration certificate
⑤ One(1) copy of bank account(domestic) for incentive payment
① One(1) copy of Application for the Transfer Incentive Program (Form3)
② One(1) copy of business registration certificate
③ One(1) copy of bank account(domestic) for incentive payment
Payment Period (Scheduled) ① for New Airlines/Destinations, Strategic Destinations: Incentive payments shall be deducted from the landing charges due in the following month(monthly)
② For increased flight frequencies: Incentive payments shall be made in the first quarter of the following year (yearly)
① Cash payment(70%): Payment will be made during the first quarter of the following year (yearly)
② Transfer promotion points (30%): To be used and settled in the following year.

Application submission period for 2018
- (For New Airlines/Destinations, Increased flight frequencies, Strategic Destinations Incentives) Applications must be submitted by 10 working days before the commencement of flight service. However, application acceptance will be extended to April 30, 2018 (Mon) for applications submitted between March 25, 2018 and April 30, 2018 in consideration of the time required for sufficient explanation and promotion of the new incentive program.
- (For Transfer Incentives) By April 30, 2018.

Restriction on Duplicate Applications

Payments shall not be made for duplicate applications to multiple categories among new airlines, Increased flight frequencies and Strategic Destinations incentives. Once an Application is submitted, it should not be replaced to another incentive programs. The incentive shall apply only to the original application in case of duplicate applications to multiple categories subject to the incentive program.

Beneficiaries of Previous Incentive Programs

If airlines benefiting from the previous incentive program for new airlines/new destinations and strategic destinations are subject to an exemption period extending beyond 2018, the reduction shall be applied for the remaining period as before.

Payment Restrictions

Airlines with overdue payment for airport facility usage charges at the time of incentive settlement shall be excluded from the incentive program.

Notification of Changes

Incentives shall be applied only to airlines that have submitted an official notification to the Incheon Airport about changes that have occurred with regard to the flight operation (flight days of the week, frequency, flight number, etc) during the effective period of the incentive program.

Precedence of Korean Version

In the case of any conflicts or differences in the interpretation of this guideline between the Korean version and translated versions in other languages, the Korean text shall take precedence.

Miscellaneous

The requirements related to this guideline shall be understood and observed. Airlines are liable for disadvantages arising from non-compliance with the requirements. In the case of any differences in the interpretation of this guideline, the interpretation of the corporation shall be followed. For other incentive related inquires, contact the Airline Marketing Team at the Incheon Airport Corporation (Tel: 741-2436, 2437 Fax: 032-741-2419)

Direct any questions regarding information on the website to:
  • Managing department : Airline Marketing Team
  • TEL : 032-741-2436, 2437