Gov't to examine management structure of Incheon Tiger Airways: official

SEOUL, Oct. 24 (Yonhap) -- The government must examine the management structure of Incheon Tiger Airways to determine if it can be given a local operating license, a senior government policymaker said Friday.

Transportation Minister Chung Jong-hwan told lawmakers at a parliamentary audit
hearing that if Incheon city cannot prove that it is in charge of running the
budget carrier, the central government will be barred from allowing it to operate
as a local airline company.
"The official position on this key matter has already been forwarded to Incheon,"
he said.
The port city, west of Seoul, has a 51 percent stake in the company versus 49
percent for Singapore-based Tiger Airways, and claimed that because it holds
majority interest it can be registered as a local company.
This stance is, however, contested by South Korea's low cost carriers that claim
that the airline will be managed by Tiger Airways since Incheon has no experience
in running such a company.
Under South Korea's aviation law, a local partner must not only be the majority
stakeholder, but be in charge of flight operations and management if it wants its
aircraft to be registered locally.
Jeju Air Co., Jin Air Co., Yeongnam Air Co. and Busan International Air filed a
joint petition to the Ministry of Land, Transport and Maritime Affairs in late
August claiming the new company could trigger unfair competition and raise serious
legal issues.
The companies argued that because the Singapore-based Tiger Airways is
effectively owned by the Southeast Asian city state, its entry into the market
would be tantamount to private companies competing with a government.
The local budget carriers then said if Incheon Tiger took off, it would be like
handing over to another state the benefits from open aviation agreements signed
with Japan and China.
The port city, meanwhile, has delayed applying for registration until the end of
the year.