The International Air Transport Association (IATA) has welcomed the successful conclusion of a new charges agreement with Incheon International Airport Corporation (IIAC).

"Incheon has set an example for other airports in the region to follow. It has always been a model for operational efficiency and good service. Now, Incheon has listened to its airline customers and brought about a 10% reduction in landing charges. We look forward to the continued efforts to improve efficiency and service," said Giovanni Bisignani, IATA's Director General and CEO. "This renewed cooperation between IATA, airlines, the Airline Operators Committee (AOC) and IIAC will be critical in ensuring the success of Incheon's terminal expansion in 2008".

"We need more airports engaged in win-win relationships with airlines. In a climate where airlines are still unable to earn a reasonable return on capital, every savings counts. We need our industry partners to share our obsession for efficiency. Airport and air navigation service charges account for 11% of airlines operating costs. That's a staggering US$42 billion every year," said Bisignani.

"Moving forward, South Korea needs to introduce effective and independent economic regulation of airports to ensure proper processes and appeal mechanisms are in place," said Bisignani. He noted that the agreement had been reached only after 12 months of intense negotiations between airlines and IIAC.

While Bisignani welcomed the reductions at Incheon, he questioned why air transport has been targeted in South Korea as the vehicle for raising funds for developing countries.

"While Incheon Airport has lowered airport charges, the recent introduction of the 1,000 Won solidarity tax on all passengers departing from South Korea will discourage passenger traffic. The South Korean government should instead consider steps to reduce the financial burden on airlines as the best means of promoting economic growth, international trade and inward investment. This could generate additional funds that could be devoted to international aid and development," said Bisignani.