(1) Reasons for Proposal

The Aviation Business Act was amended (Act no. 16565; promulgated on August 27, 2019; to be enforced on February 28, 2020) to prescribe that a license may be revoked upon finding a major defect during the operating certification process after issuing a new airline company license; require airline companies, airport operators, and other aviation operators to provide essential services for the use of aircraft by vulnerable passengers; and impose an administrative fine for non-compliance. Accordingly, this Amendment modifies the criteria for administrative measures against airline companies with major defects, prescribes standards on the convenient use of air transportation by vulnerable passengers, and otherwise prescribes matters delegated by the Act and matters necessary for the enforcement thereof.

The Amendment also reflects an amendment to the Enforcement Decree of the Aviation Business Act (Presidential Decree no. 29267; partially amended on October 30, 2018; enforced on October 30, 2018) that increased the review period for plans for business operation from 2 years to 3 years to improve license requirements for air transport services.

(2) Major Provisions

A. Modify criteria for administrative measures against air transport service providers in accordance with the amended Act (attached Table 1)

1) Modify criteria for administrative measures in accordance with the amendment to Article 28, paragraph 1, subparagraph 16 of the Aviation Business Act, which strengthens the requirement for license revocation after a financial structure improvement order to cases where at least half of the capital impairment continues for “at least two years” to ensure the financial soundness of air transport service providers (attached Table 1, subparagraph 2, standard 11, item B modified)

2) Newly insert criteria for administrative measures in accordance with the newly inserted Article 28, paragraph 1, subparagraph 21 of the Aviation Business Act, which prescribes that a license shall be revoked upon finding a major defect during the process of operating certification (attached Table 1, 2. standard 14 newly inserted).

B. Convenience standards for vulnerable passengers (Articles 64-2 through 64-6 newly inserted)

Prescribe essential matters concerning convenience standards for vulnerable passengers to ensure that aviation operators protect vulnerable passengers and their mobility rights by providing information on the use of air transportation requested by vulnerable passengers, providing assistance for airport use and boarding/disembarking, operating priority seats and other in-flight services, administering at least 3 hours of training a year to employees who serve vulnerable passengers, providing information on complaints handling procedures when a vulnerable passenger raises a complaint, etc.

C. Improve license requirements for air transport services (Article 8, paragraph 1, subparagraph 2, item G amended)

Strengthen the review period from “two years” to “three years” for operating expenses, fundraising plans, and secured funds in plans for business operation to verify the financial capacity of airline companies and ensure the strict implementation and stable operation of business plans in accordance with amendments to attached Table 1 of the Enforcement Decree of the Aviation Business Act (Presidential Decree no. 29267; partially amended on October 30, 2018; enforced on October 30, 2018)