Korean Air views NAIA privatization with ‘cautious optimism’

MANILA: South Korea’s flag carrier Korean Air (KE) has expressed cautious optimism over the upcoming privatization of the Ninoy Aquino International Airport (NAIA) and is keen on increasing flight frequencies between Manila and Incheon.

KE’s Regional General Manager for the Philippines and Guam Byung Kwon Lee said the airline views the privatization with cautious optimism, particularly given Incheon Airport Corporation’s participation in the consortium that will operate it.

He also shared expectations on NAIA’s future development, anticipating significant enhancements in the automation of Customs, Immigration, and Quarantine (CIQ) processes.

“Such improvements are crucial for streamlining passenger flow and minimizing wait times, ultimately leading to a more efficient airport experience,” Lee said in an exclusive interview with the Philippine News Agency.

The airline also urges the new operator to prioritize the expansion of passenger amenities and convenience features and enhance the overall experience.

A
s to the looming increase in aeronautical fees, Lee said KE acknowledges the necessity for substantial investment in airport infrastructure and services but advocates for a measured and phased approach to any increases in operational costs.

“It is important that NAIA maintains its competitive position within the region, balancing necessary improvements with cost-effectiveness for both airlines and passengers,” Lee said.

Uptick in demand

“We welcome the Filipino government’s efforts to revitalize tourism and we’re seeing the results in increased passenger numbers,” he noted.

Total passenger volume at the NAIA reached 25,115,069 for the first half of 2024, about 13 percent higher than the 22.2 million passengers in the first half of 2023.

“The Philippines has always been a popular destination for Korean tourists, and we’re glad to see this trend returning and strengthening after the pandemic,” he said.

KE welcomes the recent developments from the Korea-Philippines aviation talks, which have increased traf
fic rights between Seoul, Incheon and Manila.

Lee said this is a positive step that aligns with the growing demand.

“We are interested in increasing our flight frequency on this route, provided that we can secure favorable slot times at Manila Airport that meet our operational needs and passenger preferences. The allocation of suitable slots is crucial for us to optimize our schedule and network connectivity,” Lee said.

The airline flies thrice daily between Incheon and Manila.

In 2023, the average load factor for this route was above 85 percent, which KE considers very high.

“We’re committed to the Philippine market and look forward to continuing our strong partnership with NAIA and the Philippine aviation sector,” Lee said.

Decisions about expanding KE’s operations would be based on demand, the improved facilities at NAIA, and the ability to obtain the requested time slots, he added.

Source: Philippines News Agency

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