Civil aviation takes flight path to recovery

Assistance provided

To help airlines through difficulties such as declining passenger trips and rising fuel costs, government subsidies are being offered, according to the Civil Aviation Administration of China, or CAAC, and the Ministry of Finance.

Domestic carriers are expected to benefit from the financial support when 4,500 or fewer domestic commercial flights are operated daily. These flights do not include those in Hong Kong, Macao and Taiwan, emergency flights, and those operated by private business jets.

The Ministry of Finance is providing 65 percent to 80 percent of the subsidies, with the remainder being funded by governments in departure cities.

The subsidies, which are being offered from May 21 to July 20, have stabilized operations in the sector, prompting a rise in commercial flights and fares.

Other government subsidies, such as tax relief and financial credits, are also being provided to the civil aviation sector, according to a joint guideline released by the National Development and Reform Commission and other government departments in February.

Civil aviation expert Yu Zhanfu, partner and vice-president of the China unit at consultancy Roland Berger, said, "This is a positive sign that the State understands the challenges facing the sector and is willing to help it through difficult times."