Planes Not Taking Off... Incheon Airport Refueling Facilities Also SOS "Sales Down 70%"

"Unpredictable Situation... Rent Reduction or Change in Calculation Method Needed"

On the 9th, aircraft are parked on the apron at Incheon International Airport. Photo by Mun Ho-nam munonam@

[Asia Economy Reporter Yu Je-hoon] Due to the impact of the novel coronavirus infection (COVID-19), aircraft refueling facilities, following airlines and ground handling companies, are also being pushed to the brink of survival.

According to the industry on the 14th, Incheon Airport's refueling facilities supplied 1.74 million gallons of aviation fuel as of the 9th. This is about a 70% decrease compared to the previous month and is even less than the early 2000s when Incheon Airport opened (2 million gallons).

The reason for the sharp decline in refueling performance at the facilities is attributed to the suspension of flights by domestic airlines. After the spread of the COVID-19 crisis, countries began restricting entry of passengers from Korea, leading to widespread flight suspensions, and the resulting shock has extended to the refueling facilities as well.

The refueling facility was built with private capital in 2001, transferred to the state in 2012, and is currently operated under consignment by Asiana Airport, a ground handling subsidiary of Asiana Airlines.

Asiana Airport typically charges a fixed usage fee per gallon to operate. The structure is such that revenue increases with the volume of fuel supplied and decreases when it drops. However, fixed rental fees must be paid regardless of sales.

The problem is that due to the sudden COVID-19 crisis, sales have plummeted, making it difficult to pay the fixed rental fees. A representative from Asiana Airport stated, "During the 2008 financial crisis, there was a 5.4% slowdown in growth, but this situation is completely unpredictable, with a potential future decline rate of up to 80%."

The representative also emphasized, "To ensure stable airport operations, there needs to be a temporary significant reduction in rental fees or a revolutionary policy support plan, such as switching the unreasonable rental fee payment method to one linked to sales during this opportunity."