Did you know that Incheon Airport is being exported to different parts of the world?
Incheon Airport is turning its know-how in airport construction and operation that has been accumulated since its opening in 2001 into its unique competitiveness. As the airport is praised as one of the world’s best in operation efficiency and service, many airports around the world are trying to learn from Incheon Airport!
This post will briefly introduce Incheon Airport’s new standing and the fields of our overseas projects, which have been unbeknownst to ordinary citizens until now. 😊
Latin America, Europe, the Middle East, and Asia… Spreading Airport’s Know-how Across the World!
Incheon International Airport Corporation created the Overseas Business Group in 2007 and has since been targeting the international market. The outcome has been amazing.
The airport has won 29 projects totaling USD 220 million in 14 countries from Erbil International Airport, Iraq in 2009 to Russia, Nepal, Bangladesh, Cambodia, India, and Indonesia (as of July 2020).
Why Focus on Overseas Business?
Though airports are struggling a bit due to COVID-19, air travel demand around the world has been on the rise, and so has the demand for airport development including modernizing existing airports and constructing new ones.
In line with this market trend, Incheon International Airport Corporation has participated in various international projects by exporting its accumulated know-how in airport construction and operation to create new growth engines and become a specialized global airport enterprise. More specifically, the operation right of overseas airports is a business that helps to diversify the corporation’s profit structure and serves as an opportunity to export its advanced technologies and know-how, which can enhance its status.
Along with the successful operation of Terminals 1 and 2, Incheon International Airport Corporation has successfully performed airport consulting and operation projects across regions, such as Latin America, Europe, the Middle East, and Asia, and continued to make conditions favorable to win awards for projects down the road.
What Fields are Included in Overseas Business?
Incheon International Airport Corporation’s overseas business is divided into 3 fields: (1) airport planning and construction consulting, (2) airport operation support consulting, and (3) investment projects. Based on our know-how in airport construction and operation, we have continued to expand our overseas business across various fields. By doing so, it helps to make other Incheon Airports in other parts of the world.
(1) Airport Planning/Construction Consulting
Solid, basic design, including operation strategies and action plans in line with the direction of future developments, is very important for any airport as it will be a national infrastructural industry that has a huge economic impact on a country in terms of its scale or impact.
Incheon International Airport Corporation has provided consulting across various fields such as airport construction feasibility studies, master plans, design advice, Value Engineering (VE), Construction Management (CM), and Operational Readiness and Airport Transfer (ORAT) based on its capabilities which have been pilled up over the years.
Most notably, the corporation established the 2013 Philippines National Airport Master Plan. Incheon International Airport Corporation formulated the development strategy and stage-specific development plans of all airports across the Philippines, an island and country of tourism. The project lasted for 18 months from 2014 to June 2015 and cost USD 25.8 million (KRW 2.7 billion). While Korea previously provided consulting to many individual airports abroad, this was the first time that the corporation was in charge of establishing a national-level plan.
(2) Airport Operation Consulting
While it is important to build the airport physically well, it is just as important to obtain continuous content to attract many passengers. To do so, it is essential to establish a vision and business strategy that embodies an airport’s direction. Furthermore, know-how is necessary across an airport’s operations such as passenger service management, marketing to attract airlines, commercial facility concept design, airport security and secured area control, and airside operation.
Incheon Airport is recognized for its international competitiveness in passenger service as it has ranked #1 in Airport Service Quality (ASQ) for 12 years in a row. This competitiveness in operation helped Incheon Airport win an award for the Kuwait Terminal 4 project back in 2019.
(3) Investment Projects
While Incheon International Airport Corporation has performed many different overseas projects, most of them focused on consulting. To improve added value, the corporation will diversify its portfolio through various methods such as highly profitable share investing in addition to consulting.
A great example of the airport’s share investing is the project under which Incheon International Airport Corporation invested KRW 7.6 billion in the Khabarovsk Novy Airport in Russia from 2011 to 2017. This airport is the 9th largest out of the 351 airports in Russia and promoted by the Russian federal government as a Far-East hub airport. Incheon International Airport Corporation sold 10% of the shares it invested in Khabarovsk Novy Airport for KRW 11.1 billion in 2018, raking in a 46％ return on investment.
Today, we looked at Incheon International Airport Corporation’s overseas business status and project fields. Isn’t it great that Incheon Airport promotes its competitiveness to the world and contributes to improving Korea’s national standing? The next post will introduce some major projects in more detail out of the various projects being carried out by Incheon International Airport Corporation!