Incheon Airport, evolving into a third-generation airport and changing the paradigm of airports!
Before reading this post, it is important understand the big picture in which Incheon Airport is moving beyond a traditional airport that simply transports passengers and cargo while creating new economic value by combining many airport-related businesses. This post takes it one step further and introduces specific action strategies to implement the Airport Economic Zone.
To develop the Airport Economic Zone, Incheon Airport has selected and seeks four industry hub: aircraft support, tourism/MICE, global logistics hub, and creation of air transport demand. Let’s take a look at what is going on in each of the themes!
Four Industry Hub of the Airport Economic Zone: ① Aircraft Support
“Making aircraft maintenance a one-stop service at Incheon Airport”
Aircraft support refers to various support businesses related to the operation of aircrafts. More specifically, aircraft maintenance, repair, and operation (MRO) refers to inspecting, maintaining, and repairing aircrafts so that they can operate safely.
Incheon Airport supports MRO so that it functions properly while preparing it to become a new business foundation for the future.
It is a plan to lay the solid groundwork for the aircraft maintenance ecosystem by preemptively developing MRO infrastructure, such as hangars, maintenance training centers, MRO part facilities, and administrative support centers to create a large MRO cluster around the airport while attracting professional training institutions to nurture skilled human resources for aircraft maintenance.
In addition, to respond to recently rising demand for leisure/business aircrafts, the airport will establish separate fixed-base operator (FBO) facilities to attract more VIP customers. It is fun looking forward to more development in Incheon Airport!
Four Industry Hub of the Airport Economic Zone: ② Tourism/MICE
“Making coming to Incheon Airport itself a reason”
Tourism/MICE is a business that makes Incheon Airport an attractive destination beyond just being a place for a layover. To do so, it is necessary to develop surrounding facilities such as accommodations, culture and art, commercial stores, and exhibition halls to make Incheon Airport itself a tourist attraction.
It is important to develop its landmarks, in particular. The airport’s strategy is to develop complex facilities, combining commerce, hotel, culture and art, and business, satisfying various passenger needs, and maximizing its effect of attracting customers.
Landmarks developed like this can create even more economic value in connection with tourism resources in the hinterland. Incheon Airport is painting a picture to establish a recreation/tourism belt to connect adjacent cities, such as Yeongjong, Ganghwa, and Songdo, and build an airport-centered tourism industry belt.
Four Industry Hub of the Airport Economic Zone: ③ Global Logistics Hub
“Making Incheon Airport a global logistics hub”
Incheon Airport is geographically well-positioned as it is close to the world’s factory China and other countries in Asia, just 30 minutes away from Incheon Port by car, and capable of various logistics transport connecting maritime and air transport. Based on this geographical advantage and potential as a logistics hub, Incheon Airport has been able to grow rapidly in just a short period of time.
In the last post, do you remember we told you that Incheon Airport ranks 3rd in the world in handling international cargo, following Hong Kong and Shanghai/Pudong? Incheon Airport does not stop there and instead, continues to expand its logistics infrastructure to handle a larger volumes of cargo more accurately and quickly.
It is worth noting that the airport rapidly responds to the expanding e-commerce sector and subsequently changing distribution processes. Incheon Airport is planning to lay steppingstones to continue to grow as one of the finest cargo airports by establishing optimal operation systems and models for logistics facilities, including a *global distribution center, *fulfillment center, and *cold chain.
*Global Distribution Center (GDC)
Center for global logistics that receives and stores products from global e-commerce companies, classifies and repackages them by item, and delivers them according to individual orders
Logistics fulfilled by professional logistic firms for sellers, including storage, sorting, packaging, delivery, and handling
System that keeps temperature low enough to maintain freshness and quality during storage and transport from the harvest to the final destination of fresh foods
Four Industry Hub of the Airport Economic Zone: ④ Creation of Air Transport Demand
“Making Incheon Airport a giant business platform”
Finally, creation of air transport demand refers to creating passenger and cargo demand by attracting cutting-edge manufacturing firms near the airport. A place near Incheon Airport is definitely attractive to companies whose manufactured goods are mostly exported and whose employees travel abroad often.
In a nutshell, it aims to build a convergent cutting-edge industry hub for light, thin, short, and small assembly and processing as well as biotech, advanced materials, and energy in accordance with the 4th Industrial Revolution in which the industrial structure will turn into that which is convergent and cutting-edge.
It includes Global Aviation Town, which establishes an airport industry network cluster by integrating airline headquarters and operation support centers; Global Trade Market, which creates various exchanges such as aircraft product displays, aircraft human resource exchanges, and artwork trade; R&D and Training Park, which establishes business-friendly conditions; and Aircraft Financing Park, which supports aircraft leases. Integrating such industries can create enormous added value.
Today, we looked at the Airport Economic Zone’s four industry hub: aircraft support, tourism/MICE, global logistics hub, and creation of air transport demand. Incheon Airport dreams of developing itself and its surrounding areas into an Airport Economic Zone based on these four industry hub.
We are still in the early stages, but if everything goes as planned, it will have a huge economic ripple effect! We ask for your continued interest and support for Incheon Airport so that these efforts can translate into momentum for the country’s economic growth!