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BUSAN METROPOLITAN CITY ORDINANCE ON FOSTERING HUB AIRLINES

By Airport Planning Division Dec 16, 2025 21  Views
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BUSAN METROPOLITAN CITY ORDINANCE ON FOSTERING HUB AIRLINES

Enforcement Date: Sep. 25, 2024

Enacted by Busan Metropolitan City Ordinance No. 7389, Sep. 25, 2024
Busan Metropolitan City (Airport Planning Division)

  • ●Article 1 (Purpose)

  • ●The purpose of this Ordinance is to prescribe matters necessary for the fostering of Hub Airlines based at regional airports in Busan Metropolitan City, thereby contributing to the revitalization of the local economy through the increase of passenger and cargo air transport, the improvement of air travel convenience, and the advancement of the aviation industry.

  • ●Article 2 (Definitions)

  • ●The terms used in this Ordinance are defined as follows:

  • ○1. The term “regional airport” means Gimhae International Airport and the airport to be constructed under the Special Act on the Construction of Gadeokdo New Airport.

  • ○2. The term “hub airlines” means airlines that meet all of the following requirements:

  • ■a. An air operator licensed by the Minister of Land, Infrastructure, and Transport to operate domestic or international air transport services under Article 7 of the Aviation Business Act, or registered as a small aircraft operator under Article 10 of the same Act.

  • ■b. An air operator that registers its aircraft at a regional airport and operates international or domestic route.

  • ■c. An air operator whose headquarters is located within Busan Metropolitan City (hereinafter referred to as the “City”).

  • ○3. The term “new routes” means an international route newly established by a hub airline to expand the global aviation network of a regional airport, as designated by the Mayor of Busan Metropolitan City (hereinafter referred to as the “Mayor”).

  • ●Article 3 (Relationship with other ordinances)

  • ●Unless otherwise specifically provided in other ordinances, matters concerning the support of new routes operated by hub airlines shall be governed by this Ordinance.

  • ●Article 4 (Fostering projects)

  • ●The Mayor may promote the following projects to enhance the competitiveness of hub airlines:

  • ○1. Support projects for newly established international passenger route;

  • ○2. Support projects for newly established international cargo route;

  • ○3. Human resources development and Industry-Academia-Research cooperation projects for the sustainable growth of hub airlines;

  • ○4. Support projects for stabilizing the operations of hub airlines;

  • ○5. Support Project to promote the safety of hub airlines;

  • ○6. Overseas marketing and promotion of new scheduled international and domestic route;

  • ○7. Support for hub airlines to participate in international aviation – related events;

  • ○8. Other projects deemed necessary by the Mayor to foster regional airports and hub airlines.

  • ●Article 5 (Financial support)

  • ●(1) The Mayor may provide all or part of financial support within the budget to hub airlines, relevant institutions, and organizations carrying out fostering projects under Article 4.

  • ●(2) Procedures and methods of financial support under paragraph (1) shall be governed by the Busan Metropolitan City Ordinance on the Management of Subsidies.

  • ●Article 6 (Prohibition of overlapping support)

  • ●Where the Mayor provides financial support under Article 5, such support shall not overlap with support under the Busan Metropolitan City Ordinance on the Expansion of International Air Routes or the Busan Metropolitan City Ordinance on Tourism Promotion.

  • ●Article 7 (Refund of subsidies)

  • ●If any person has received financial support by fraud or any other improper means, the Mayor shall require the return of all or part of the subsidy under Article 31 of the Subsidy Management Act.

  • ●Article 8 (Entrustment of affairs)

  • ●(1) For the efficient implementation of projects under Article 4, the Mayor may entrust all or part of the projects to any of the following entities listed in subparagraphs with the necessary organization and facilities:

  • ○1. Hub airlines headquartered in the City;

  • ○2. Public institutions under Article 4 of the Act on the Management of Public Institutions;

  • ○3. Corporations or organizations funded or invested in by the Government or the City;

  • ○4. Schools under Article 2 of the Higher Education Act;

  • ○5. Other specialized organizations or institutions related to the aviation business.

  • ●(2) Where affairs are entrusted under paragraph (1), the Mayor may provide all or part of financial support within the budget.

  • ●(3) Matters not provided for in this Ordinance concerning the entrustment of affairs shall be governed by the Busan Metropolitan City Ordinance on the Entrustment and Agency of Affairs to Public Institutions or Busan Metropolitan City Framework Ordinance on the Entrustment.

  • ●Article 9 (Establishment of the Committee)

  • ●To deliberate or advise on the following matters related to the fostering of hub airlines, the Busan Metropolitan City Committee on the Fostering of Hub Airlines (hereinafter referred to as the “Committee”) shall be established:

  • ○1. Planning and promotion of projects under Article 4;

  • ○2. Review of feasibility, support criteria, and selection of new routes;

  • ○3. Other matters deemed necessary by the Mayor for the fostering of hub airlines.

  • ●Article 10 (Composition of the Committee)

  • ●(1) The Committee shall consist of not more than 9 members, including 1 Chairperson, with consideration of gender balance. Public officials shall not exceed 1/4 of the total members.

  • ●(2) The Chairperson shall be elected from among the civilian members, and members shall be appointed or commissioned by the Mayor from among the following persons:

  • ○1. Persons with extensive knowledge and experience in the aviation industry;

  • ○2. Persons recommended by the Busan Metropolitan Council;

  • ○3. Director or department head in charge of the hub airline affairs;

  • ○4. Other persons deemed necessary by the Mayor.

  • ●(3) The term of office for commissioned members shall be 2 years and may be reappointed once.

  • ●(4) Where a non-public official member resigns or is newly commissioned, the successor’s term shall be the remainder of the predecessor’s term. Even after the expiration of a member’s term, the member shall continue to perform duties until a successor is appointed.

  • ●(5) Meetings of the Committee shall be convened with the attendance of a majority of its members, and resolutions shall be adopted by a majority vote of those present.

  • ●Article 11 (Dismissal of members)

  • ●The Mayor may dismiss a member in any of the following cases:

  • ○1. Where the member expresses an intention to resign their duties;

  • ○2. Where the member is unable to perform their duties due to health reasons;

  • ○3. Where the member is involved in misconduct related to their duties;

  • ○4. Where the member is deemed unfit to serve due to negligence, loss of dignity, or other reasons.

  • ●Article 12 (Detailed rules of operation)

  • ●Matters necessary for the operation of the Committee not provided for in this Ordinance shall be determined by the Chairperson after deliberation by the Committee.

  • ●Article 13 (Criteria for new routes)

  • ●Hub airlines intending to establish new routes must satisfy any 1 of the following criteria:

  • ○1. An international scheduled passenger route departing from or arriving at the City, which had no prior operation before the date designated by the Mayor, with a distance of not less than 2,500 km, and which operates continuously for at least 6 months;

  • ○2. An international scheduled cargo route departing from, arriving at, or transiting through the City, with no prior operation before the date designated by the Mayor, operating continuously for at least 6 months;

  • ○3. An international charter passenger route with a flight distance of 2,500 km or more, with no prior operation before the date designated by the Mayor, operating at least 4 round-trips per year for the purpose of establishing a new international route;

  • ○4. An international charter cargo route with no prior operation before the date designated by the Mayor, operating at least 4 round-trips per year for the purpose of establishing a new international route.

  • ●Article 14 (Public announcement of new routes)

  • ●(1) When selecting hub airlines to operate new routes, the Mayor shall publicly announce in advance, in the Busan Metropolitan City Gazette or on the City’s website, the information necessary for application, including business plan.

  • ●(2) Matters necessary for the public announcement of new routes under paragraph (1) shall be separately determined by the Mayor.

  • ●Article 15 (Submission of business plan)

  • ●Hub airlines intending to operate new routes shall submit a business plan to the Mayor in accordance with the public announcement under Article 14 (1). The business plan shall include the following:

  • ○1. Operation period, frequency, fares, type and seating capacity of aircraft (in case of international cargo carriers, available cargo tonnage), expected load factor (in case of cargo carriers, expected cargo load rate), and estimated costs;

  • ○2. Feasibility of implementing the operation plan;

  • ○3. Contribution to the local economy and community development.

  • ●Article 16 (Notification of selection results of new routes)

  • ●The Mayor shall notify the relevant hub airlines of the selection results within 1 month after deliberation by the Committee on the business plan submitted under Article 15.

  • ●Article 17 (Supervision)

  • ●The Mayor may require any person who has received financial support or been entrusted with affairs under this Ordinance to report relevant matters or submit materials, and may take supervisory measures such as having public officials conduct inspections.

  • ●Article 18 (Establishment of cooperation system)

  • ●The Mayor may establish and operate a cooperative system with Gu/Gun and institutions, organizations, etc. related to the fostering of hub airlines in order to effectively implement policies.

  • ●Article 19 (Awards)

  • ●The Mayor may grant awards, in accordance with the Busan Metropolitan City Ordinance on Awards, to institutions, organizations, or individuals who have made outstanding contributions to the fostering of hub airlines.

ADDENDUM

Ordinance No. 7389, Sep. 25, 2024

  • ●Article 1 (Enforcement date)

  • ●This Ordinance shall enter into force on the date of its promulgation.

  • ●Article 2 (Duration of the Committee)

  • ●The Committee under Article 5 shall continue to exist until Aug. 31, 2029.

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