SOUTH KOREA. Deputy Prime Minister and Minister of Strategy and Finance Hong Nam-ki today announced a plan to encourage spending and provide support for the beleaguered travel retail industry.
The initiative allows duty free sales to passengers on ‘flights to nowhere’ from airport and airline retailers for a period of one year.
The duty free allowance remains unchanged and passengers are allowed to purchase up to US$600 worth of duty free products. The purchase of liquor is limited to 1 bottle (1 liter within US$400), 200 sticks of tobacco and 60ml of perfume for each passenger.
Passengers can choose to purchase from airline duty free, downtown duty free – including online purchase – departure zone and arrival duty free.
Deputy Prime Minister Hong said, “Instructions have been given for negotiations between airlines and relevant government agencies to discuss the launch of ‘flights to nowhere’.”
All passengers are required to follow strict social distancing measures and they will be exempt from quarantine requirements upon landing back in Korea.
The government laid out guidelines to restrict interaction of ‘flights to nowhere’ passengers with normal departure and arrival passengers. Passengers can use both Incheon International Airport Terminal 1 and 2 on departure but airlines will guide their departure upon arrival at airport. Passenger arrival will be restricted to Terminal 1 East Arrival gates 5 to 10. Online duty free sales pickup will also occur outside of the departure gate and not at the usual pick-up counter.
The Ministry of Economy and Finance estimates ‘flights to nowhere’ will generate KRW4.8 billion (US$4.3 million) in flight revenue for airlines and help airline employees keep their jobs.
The minister vowed to consult with the related ministries and airline industry to complete preparations within the month for the programme’s launch.
The country’s two flagship carriers, Korean Air and Asiana Airlines, as well as four low cost carriers, are preparing to introduce the scheme.
