'COVID-19 Impact' Incheon Airport Corporation Declares 'Emergency Management'... Executive Salary Surrender

Emergency Airport Operation Plan to Be Reviewed According to Passenger Demand

[Asia Economy Reporter Yu Je-hoon] Incheon International Airport Corporation has declared an emergency management system. This comes as Incheon International Airport continues to set record lows in passenger numbers amid the novel coronavirus disease (COVID-19) outbreak. The corporation plans to have its executives voluntarily return 20-30% of their salaries over the next four months and will initiate emergency airport operations depending on the decline in air travel demand.

Incheon Airport Corporation announced on the 26th that it held an emergency management meeting chaired by President Koo Bon-hwan and decided to enter an emergency management system to respond to COVID-19. It is the first public enterprise to switch to an emergency system following the COVID-19 crisis.

According to Incheon Airport Corporation, daily passenger numbers at Incheon Airport began to decline compared to the previous year (-16.1%) starting January 25. The decline widened sharply to 51.1% in the fourth week of February and 91.8% in the third week of March.

Notably, on the 24th, the daily passenger count at Incheon Airport dropped to 9,316, breaking the 10,000 passenger mark for the first time since its opening in 2001. If this trend continues, the corporation estimates that annual passengers could decrease by about 70% compared to the previous year, threatening the airport's break-even point.

Accordingly, the corporation plans to consider phased emergency airport operations based on demand trends. If daily passengers range between 7,000 and 12,000, Stage 1 emergency operations will be implemented (reducing departure hall operations, cutting shuttle train services, etc.). For 3,000 to 7,000 passengers, Stage 2 emergency operations will be considered (partial operation of Terminals 1 and 2). If passengers fall below 3,000, Stage 3 emergency operations will be reviewed, minimizing terminal functions to a 'shutdown' level.

With a sharp decline in passengers leading to a significant drop in net income, financial management measures will also be taken. Incheon Airport Corporation plans to raise a total of 975.1 billion KRW through bonds and other means.

Furthermore, to fulfill its social responsibility as a public enterprise and share the burden, executives will voluntarily return their salaries for four months. The return scale is 30% for the president and 20% for executives. Additionally, all employees will voluntarily engage in local and social contribution activities.

President Koo said, "Due to the global spread of COVID-19, daily passengers at Incheon Airport have fallen below 10,000 for the first time since its opening. If this continues, there is a sense of crisis that the airport industry ecosystem could collapse. Based on this, we have declared a company-wide emergency management system. Through close communication and cooperation with related organizations, we will proactively implement company-wide emergency management measures to overcome the current crisis early and lead the foundation for coexistence and mutual growth among members of the airport industry ecosystem."