Demand recovery in the aviation industry is expected to take 2 to 4 years additionally
Reduction of airline burden by extending reductions and exemptions such as acquisition tax
Creating new demand by diversifying non-landing tourism flights
Korean Air passenger planes are erected at the apron at Gimpo Airport in Gangseo-gu, Seoul. / Reporter Kang Jin-hyung
[아시아경제 문제원 기자] The government expanded funding for airlines to support the aviation industry, which has been struggling since the spread of Corona 19, and diversified non-landing tourism flights and the’travel bubble.(Travel Bubble·Non-Isolated Travel Area)’, etc.Promote.
On the 3rd, the government announced a’plan to overcome the corona crisis in the aviation industry and take a new leap forward’ at the 31st meeting of the Central Central Countermeasure Headquarters for Emergency Economy held at the Government Complex in Seoul on the 3rd.
The government implemented more than 10 support measures as the aviation industry stagnated last year due to the spread of Corona 19, but it is still expected to take 2-4 years to recover demand to the previous level. The government prepared countermeasures on this day to support the aviation industry, which is a key infrastructure industry, and to enhance industrial competitiveness.
Diversification of non-landing tourism flights… Promoting the travel bubble
First of all, in order to create new aviation demand, Currently, non-landing tourist flights that can only be taken at Incheon Airport can be operated at local airports, and in cooperation with related organizations such as the Ministry of Culture, Sports and Tourism, we are considering providing incentives to operating airlines and travel agencies.
Currently, tourist flights depart from Korean airports and fly over foreign countries and return in the form of’outbound’, but the government plans to introduce’inbound’ tourist flights that depart from foreign airports and fly over Korea.
In consultation with the quarantine authorities, a plan is also being reviewed to allow entry to the country under limited conditions in the area around the airport or after landing at a domestic airport, using duty-free shopping, and then returning.
In order to lay the foundation for safe international flight resumption, the travel bubble will also be promoted within this year. The travel bubble means lifting the ban on mutual entry and easing quarantine measures with no restrictions on the purpose of visit, on the premise of a negative confirmation of Corona 19.
However, in the case of the travel bubble, consultation with related organizations such as quarantine and diplomacy is essential. The actual implementation will be confirmed later. Kim Sang-do, head of the aviation policy department of the Ministry of Land, Infrastructure and Transport said, “We are in practical consultation with the target country, but the target country is also cautious about the disclosure of the progress of the travel bubble, so it is difficult to disclose in detail.”
In addition, the Ministry of Land, Infrastructure and Transport reported that the introduction of the’Travel Pass’ in the form of an app containing information on the results of gene amplification (PCR) tests and vaccination results, etc. is under consideration. Although it is not possible to travel to a specific country without isolation just by issuing a Travel Pass, the inconvenience caused by national quarantine measures can be solved.
Airport passengers are wearing masks and moving to the boarding gate at Gimpo Airport, Gangseo-gu, Seoul. / Reporter Kang Jin-hyung aymsdream@
Acquisition tax/property tax reduction or extension… Promotion of establishment of aviation industry development association
The government also reviews whether to extend or resume reductions in aircraft acquisition tax and property tax. Currently, according to Article 65 of the Local Tax Restriction Act, aircraft acquisition tax is reduced by 60% from 2017 to this year, and property tax is reduced by 50% only for low-cost airlines.
As the airline management crisis continues due to the prolonged COVID-19 outbreak, and in fact, there are many cases in which major competitors are not burdened with related taxes, the government is planning to actively review additional reductions through research services, etc.
In order to strengthen the competitiveness of the aviation maintenance (MRO) industry, it was decided to review institutional support plans through research and development (R&D) support and tax reduction.
It will also promote measures to enhance fundamental industrial competitiveness so that the aviation industry can have self-sustainability even in recurrent crises such as infectious diseases.
The Aviation Industry Development Association will be amended, including the Aviation Industry Act, which specifies the basis for the establishment of the association, and the Airport Corporation Act, including the grounds for supporting the establishment of the association, and plan to establish the association in the second half of this year.
“The funding for the establishment of the association is aiming at a total of KRW 300 billion, including KRW 300 billion in public funds and KRW 700 billion in airline funds. So, we plan to establish a union within this year.”
In addition, the aviation safety supervision system will be reinforced to prevent safety problems such as long-term suspension aircraft when air demand recovers. In addition to the airline inspection activities, the Ministry of Land, Infrastructure, and Transport professional supervisor plans to provide advance consulting on piloting, maintenance, and cabins in preparation for resuming operations.
Minister of Land, Infrastructure and Transport Byun Chang-heum said “It is true that it will take time before the situation of Corona 19 is completely ended through the supply of vaccines,” he said. “We hope that through this additional support measure, our aviation industry will be able to maintain employment and enhance corporate competitiveness until the point of demand recovery. “He said.
Reporter Jeon Jung-won [email protected]