OVERVIEW
A combination of state-of-the-art facilities, pioneering IT initiatives, more than 150 shops and restaurants throughout the airport and a customer service focused business strategy have all played a role in making sure Incheon’s first 10 years have been memorable ones. However, arguably the airport’s competitive edge lies in its short passport check queues – only 12 minutes for entry and 16 minutes for departure – the fastest in the world.
So what does it feel like to be the CEO of the world’s most popular airport? “We are very proud of our success,” comments CW Lee. “However, that is now in the past and we must continue to improve and get better at what we do if we want to maintain our status as the world’s best airport.” Indeed, the man who is used to success in the private sector having previously been president and CEO of GE Healthcare Asia Growth Markets, says that collecting ACI’s top ASQ award for the past two years is one of his proudest moments.
Recalling the first time he collected the award, he enthuses: “The moment I went up onto the platform and raised my two hands in celebration, I felt like a movie star as many leading airport figures from across the world watched on with envy.
“I shall also never forget the joy and delight I felt when we were awarded an ASQ Special Recognition award by ACI at its recent World Assembly in Bermuda.” Incheon recently won a sixth successive title in 2010 and immediately unveiled its new slogan for 2011 already prepared – ‘Let’s go and win seven’.
In fact Incheon is absolutely determined to hang on to its lofty status as the world’s best airport for as long as possible and this commitment, along with a policy of always striving to raise the bar on service standards, ensures that it will take some beating.
Economics
Incheon Airport is currently one of South Korea’s best state-owned companies, registering a net profit of $300 million in 2010 on a turnover of $1.2 billion. Duty free revenues currently earn Incheon Airport around $500 million yearly from total sales of $1.26 billion. Indeed, duty free activity accounts for around 65% of Incheon Airport’s non-aeronautical revenues. Another key area of revenue generation is car parking. The airport’s philosophy as a government owned company is to earn a profit of between 5% and 10% of its turnover.
Planned IPO
In addition to new infrastructure, the next step in the evolution of Incheon Airport is privatisation, with the South Korean government planning to carry out the first phase of an Initial Public Offering (IPO) planned for later this year.
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Incheon International Airport Corporation is currently 100% government owned, but there are plans to sell up to 49% of its shares to the private sector. In order to protect the country’s ‘national asset’, foreign ownership will be limited to 30%. Individual companies will be limited to a 15% shareholding, while the airlines are being restricted to a maximum of 5%.
If all goes to plan, the government will sell a 15% interest in Incheon International Airport Corporation during an IPO in the second half of 2011.
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