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200 billion additional blood transfusion to the cliff tip LCC

As the aviation industry became more difficult as the Corona 19 incident prolonged, the government decided to provide policy financing of up to 200 billion won to low-cost airlines (LCCs) this year. It also decided to review whether to extend the aircraft acquisition tax and property tax reduction measures that have been continuously requested by the industry.

On the 3rd, the Ministry of Land, Infrastructure and Transport announced a plan to overcome the aviation industry’s corona crisis and take a leap forward, including measures to recover aviation demand, which was contracted by Corona 19, and to strengthen the competitiveness of the aviation industry. In the last year after the Corona 19 incident, the government invested 541.5 billion won in LCC. However, as Corona 19 continued for more than a year, it was decided to provide additional funds worth 200 billion won to LCCs such as Jeju Air and Jin Air. An official from the Ministry of Land, Infrastructure and Transport said, “We plan to determine the specific timing and scale of support for each airline through due diligence in the future.”

The government will also consider whether to further reduce the aircraft acquisition tax and property tax. Aircraft acquisition tax is reduced by 60% from 2017 to this year, and property tax is reduced by 50% only to LCCs. In addition, the company plans to prepare additional support measures, such as extending the period for designating special employment support industries.

It also came up with a plan to create new demand in the Corona 19 situation. A representative example is the expansion of non-landing tourist flights currently operating only at Incheon Airport to local airports. A’Travel Bubble (non-quarantine travel area)’ is also being promoted to ease entry measures without restricting the purpose of travel or flow between countries with excellent Corona 19 response.

[양연호 기자]
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