"Illinois airport courts two S. Korean airlines"

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Monday, August 20, 2007

Airport courts two S. Korean airlines
Officials say incentives go to the first to take their offer.

By Thomas V. Bona
THE ROCKFORD (IL) REGISTER STAR


ROCKFORD — Chicago/Rockford International Airport is making cargo airlines a pitch normally made by pizza chains: on time or your money back.

Airport officials are wooing two South Korean airlines that fly out of the congested Chicago O’Hare International Airport. Officials promised that if the airlines move here, they would not have any delays due to traffic, poor snow removal or other airport-related problems. If a delay happens, the airport will reimburse them for the time lost.

Officials also offered to pay to move the airlines’ operations from Chicago to Rockford, to give them temporary office space, to give a discount on jet fuel and to waive airport fees for up to a year.

Ambassador Lee Tae-sik of South Korea and Rep. Don Manzullo talk May 5 during a reception at Chicago/Rockford International Airport.

The deal was extended to Korean Air and Asiana Airlines earlier this month. Airport Executive Director Bob O’Brien said the airport also will extend the deal to other cargo operators and whoever takes it first gets it.

“What we’re demonstrating is we’re interested, we’re hungry, we’ll play,” O’Brien said.

He said the airlines expressed interest during a meeting earlier this month. A representative of Korean Air did not return a call seeking comment Friday afternoon.

Korean Air operates one flight in each direction a night, while Asiana Airlines operates four a week. O’Brien said he’s not targeting Korean Air’s passenger service.

While the airport hopes to nab all of the airlines’ flights from O’Hare, O’Brien said he’d gladly just take some of the business.

The airport has been pushing to grow its cargo operations. On the strength of UPS’ air hub, Rockford became the 21st-busiest cargo airport in the nation last year.

The airport recently signed a deal with Tandem Development Group — which has ties to O’Hare carriers — to build up to 450,000 square feet of cargo-related facilities in Rockford. The airport has been courting Polar Air Cargo and others at O’Hare to fill that space.

The Korean airlines could use the Tandem space, O’Brien said, or could use their own developer.

O’Brien said the no-delay promise is easy to make because UPS hasn’t experienced any delays on its much larger operation. Even if the airport ever has to pay up, it would be a fraction of the income it will make after the first year of a deal.

Rockford started talking with the Korean airlines after U.S. Rep. Don Manzullo, R-Egan, brought the South Korean ambassador to tour the airport earlier this year.

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