Busan Metropolitan City Ordinance on the Expansion of International Airline Routes : City Government

Ordinance No. 4532, Jul. 7, 2010

Amended by Ordinance No. 4625, Jun. 8, 2011

Ordinance No. 4958, Oct. 30, 2013

Ordinance No. 5081, Jan. 1, 2015

Article 1 (Purpose)
The purpose of this Municipal Ordinance is to prescribe matters necessary for financial support for air transportation business operators who have flights on new international airline routes in accordance with Article 3 (2) of the Air Transport Business Promotion Act, thereby contributing to the development of the regional economy with the help of air transport services expansion.

Article 2 (Those Eligible for Support)
Those who are eligible for support under this Ordinance shall be air transportation business operators whose airplanes use airports located in Busan Metropolitan City (including foreign international air transportation business operators pursuant to Article 3 (1) of the Air Transport Business Promotion Act; hereinafter the same shall apply), and, at the same time, regularly have flights on international airline routes designated by the Busan Metropolitan City Mayor (hereinafter referred to as the "Mayor") for six or more consecutive months. In such cases, international airline routes designated by the Mayor shall be the routes on which no air transportation business operators have had flights over the recent one year or more.

Article 3. (Scope of Support)(1) The Mayor shall subsidize part of a shortfall in airline revenues of an air transportation business operator under Article 2 or certain amounts by flight within budgetary limits, where the average seat load factor for the concerning route falls short of the standard of the seat load factor designated by the Mayor. [Amended by Ordinance No. 4958, Oct. 30, 2013]
(2) The method of computing a shortfall in airline revenues or certain amounts by flight under paragraph (1) shall be as specified in attached Table. [Amended by Ordinance No. 4958, Oct. 30, 2013]

Article 4. (Period of Support)
The period of support prescribed in this Ordinance shall be up to one year from the date on which air transportation business operators commence flights on routes designated by the Mayor in accordance with Article 2.

Article 5 (Public Announcements)(1) The Mayor shall publicly announce matters including financial support and application therefor in daily newspapers, the Busan Metropolitan City Newsletter (Busan Sibo) and on the Internet web site of Busan Metropolitan City, when selecting air transportation business operators who intend to have flights on international airline routes under this Ordinance. [Amended by Ordinance No. 4625, Jun. 8, 2011]
(2) The public announcements under Article 5 shall include the particulars provided for in Articles 2 through 4.

Article 6. (Submission of Business Plans)(1) An air transportation business operator who intends to have flights on international airline routes designated by the Mayor shall prepare a business plan pursuant to Article 5 and submit such plan to the Mayor.
(2) A business plan under paragraph (1) shall include the period and number of flights, airfares, types of airplanes, number of seats per airplane, expected seat load factor, costs, etc.

Article 7. (Selection of Air Transportation Business Operators)
The Mayor shall select air transportation business operators to have flights on international airplane routes designated by the Mayor and notify such operators of the results thereof within one month after reviewing business plans submitted in accordance with Article 6 (1).

Article 8. (Application for Local Subsidy)(1) If an air transportation business operator selected under Article 7 intends to apply for subsidy, he/she shall submit a written application for local subsidy as listed in attached Form to the Mayor. [Amended by Ordinance No. 5081, Jan. 1, 2015]
(2) An application under paragraph (1) shall be accompanied by the following subparagraphs:
- 1. Statements on grounds for the estimated amount of financial support;
- 2. Approved statements on airfares during the period of flights;
- 3. Flight records to prove such flights.

Article 9. (Local Subsidy)
If the Mayor receives an application for subsidy as provided for in Article 8 (1), he/she shall examine such application and decide and provide the amount of support within one month from the application. [Amended by Ordinance No. 5081, Jan. 1, 2015]

Article 10. (Supervision)
The Mayor shall take supervisory measures toward those who receive local subsidies by having them report the results of support or by having relevant public officials examine necessary matters. [Amended by Ordinance No. 5081, Jan. 1, 2015]

Article 11. (Application)
The procedures, methods of local subsidy and other matters shall comply with the Busan Metropolitan City Ordinance on Local Subsidy Management except as otherwise provided for in this Ordinance. [Amended by Ordinance No. 5081, Jan. 1, 2015]

Article 12 (Publicization of New Routes)
The Mayor may publicize matters concerning the new route of international airline routes via public media for the City's policies, etc. so as to develop the regional economy by promoting air transport business. [This Article Newly Inserted by Ordinance No. 5081, Jan. 1, 2015]

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