The International Air Transport Association(IATA) Seoul urged at the press conference held in the Westin Chosun on 24 Sep. that the competitiveness of Korea's aviation industry and the successful development should be sustained to share the role and vision with the world's aviation industry and to boost nation's competitiveness.
Tony Tyler, a director general and CEO of IATA, said "Korea has built a solid foundation for the successful development of air transport industry, which provides 140,000 related jobs and creates economic effect worth 8 trillion 300 billion won accounting for roughly 0.8% of GDP."
He continued "If the effect of tourism industry related with aviation was added, the figure would increase to respectively 488,000 jobs and 23 trillion 100 billion won(2.2% of GDP).
He continued "South Korea is currently reaching the 15th largest economy in the world and joined the 7th in the 20/50 club which indicates the nations with GDP over 20,000$ and population of 50 million. Such economic outcome was made possibly by the connectivity with the world market."
Meantime Mr. Tyler displayed caution regarding privatization of Incheon Int'l Airport. "If Incheon Airport should be privatized, the priority would have to be given to cost transparency." he added.
Once it is possessed by the government, they will focus on adjusting the balance between profit making and economic growth engine. If the stockholders were civilians, on the other hand, there is much possibility that the business activities will get transparent whereas the emphasis will be placed on maximizing returns.
He also stresses that he has never seen a successful case among privatized airports throughout the world. Particularly Incheon Airport was able to increase its competitiveness via price cut of landing charges by 10% from 2008 until 2010.
He emphasized "There is still chance that Incheon Airport will increase further competitiveness. I would like to say that the Korean government needs to be cautious regarding its privatization and hope to discuss it with IATA if circumstances require."
