- Volume 16 Issue 1
Since the 90's, Korean Air transport market has been more expanded because of economic growth, the construction of airport infrastructure, and the advent of low cost carrier. Especially, the air traffic demand in Busan metropolitan area has been increasing steadily. Therefore, in this paper, we developed a new forecasting model which could expect the future air traffic demand in Busan area. This model is developed by regression analysis using social-economic variables such as GRDP, income, and the number of people, and dummy variables, for instance, KTX opening, Japan economic depression, SARS and so on. Result from demand forecasting by this new model suggests that the new airport system is needed in order to sustain the increasing air traffic demand in Busan area.