Incheon Airport Corporation Offers Incentives to Airlines Using Domestic SAF, a First in Asia

Up to 500 Million Won in Airport Facility Fee Reductions Until Next Year
"Eco-Friendly Airport Operations, Enhanced Competitiveness in Aviation and Refining Industries"

The Ministry of Land, Infrastructure and Transport and Incheon International Airport Corporation announced on April 30 that they will implement a Sustainable Aviation Fuel (SAF) incentive program worth approximately 500 million won to enhance the decarbonization competitiveness of the domestic aviation industry.

Incheon Airport panorama. Provided by Incheon International Airport Corporation

This incentive program aims to support the domestic aviation sector’s transition to eco-friendly aviation fuel and to strengthen related competitiveness. It is the first SAF commercial operation support measure introduced among Asian airports. The core of the program is to provide a reduction in Incheon Airport facility usage fees, up to a maximum of 500 million won by next year, for international departing flights that use at least 1% domestically produced SAF.

Specifically, for short-haul routes including those within Asia, the airport facility usage fee will be reduced by about 87,000 won per flight, and for long-haul routes such as those to the United States, by about 124,000 won per flight. The program will be implemented in two phases: this year (Phase 1) and next year (Phase 2). After support applications and fee calculations based on this year's annual flight performance, the corresponding amount will be provided next year. Detailed information is available on the corporation’s website.

The corporation stated that this incentive program is intended to actively respond to the International Civil Aviation Organization (ICAO)’s Carbon Offsetting and Reduction Scheme for International Aviation (CORSIA). It is expected to generate positive effects for the national economy, including reducing carbon emissions in the aviation industry through expanded SAF adoption, increasing R&D investment in the refining, chemical, and materials industries, and creating new jobs in related industrial sectors.

Lee Hakjae, President of the corporation, said, "This incentive will strengthen Incheon Airport’s low-carbon and eco-friendly airport operations and enhance the global competitiveness of the domestic aviation and refining industries. We will continue to make efforts so that Incheon Airport and the domestic aviation industry can lead the future paradigm represented by eco-friendliness."