Zhongxin Finance, May 26. At the press conference held by the Civil Aviation Administration on May 26, Xiong Yanhua, Director of the Finance Department of the Civil Aviation Administration, gave a detailed interpretation of the financial subsidy policy for the operation of domestic passenger flights.

  Xiong Yanhua said that the civil aviation industry is one of the industries most directly and severely hit by the epidemic and is facing unprecedented difficulties.

The Party Central Committee and the State Council have attached great importance to this, and have issued important instructions and instructions on civil aviation safety and civil aviation rescue work on many occasions.

Relevant departments took the initiative and gave full support to timely issue a series of precise, efficient and pragmatic relief policies, which played an important role in stabilizing the fundamentals of civil aviation development.

  Since the beginning of this year, due to the continuous and repeated epidemics, especially in March, the local clustered epidemics frequently occurred, the civil aviation production and operation situation turned sharply, and the transportation production once showed a cliff-like decline. The need for transportation has become one of the prominent shortcomings.

In order to further enhance the civil aviation industry's ability to prevent risks in response to the impact of the epidemic and accelerate the recovery and development of the civil aviation industry, according to the decisions and arrangements of the Party Central Committee and the State Council, the Civil Aviation Administration and the Ministry of Finance have conducted a serious study on the support policies for domestic passenger flight operations, which have been reported to the State Council for approval. The two departments jointly issued the "Notice on the Phased Implementation of Financial Subsidies for Domestic Passenger Flights", and from May 21 to July 20, subsidy policy support will be given to eligible domestic passenger flights of domestic transport airlines.

  The domestic passenger flight subsidy policy is a special bailout policy decided by the state based on the current difficulties faced by the civil aviation industry and after taking into account all aspects of the situation. care.

The policy includes the main contents of five aspects, and stipulates the starting conditions, objects and scope of subsidies, as well as subsidy standards, funding arrangements and policy implementation periods, as follows:

(1) Conditions for starting the subsidy.

The policy focuses on ensuring the basic investment in the normalized and safe flight of the civil aviation industry, and encourages airlines to achieve the minimum number of flights required to maintain stable flight operations through the subsidy policy, that is, 4,500 flights per day.

When the average daily domestic passenger flight volume is less than or equal to 4,500 flights per week, the financial subsidy mechanism will be activated to subsidize all eligible flights.

(2) Subsidy objects and scope.

The subsidy policy is inclusive and fair, regardless of scale or nature, and all domestic airlines operating domestic passenger flights can apply.

At the same time, specific conditions for inclusion in the subsidy are set, including that the average daily flight volume per week does not exceed the minimum number of flights; the weekly average passenger load factor for each flight segment does not exceed 75%; and the actual flight revenue cannot cover the variable cost.

(3) Subsidy standards.

The main goal of this subsidy is to "guarantee variable costs", subsidize the

actual flight revenue after deducting variable costs, and set a subsidy ceiling of 24,000 yuan per hour.

(4) Funding arrangements.

The subsidy funds are jointly borne by the central and local finances, with the central finance as a whole bearing about 70% and the local finance at about 30%.

Taking into account the shortage of airline funds, the central financial subsidy funds are pre-allocated and then liquidated, and at the same time, they are settled once a week.

(5) Implementation period.

Considering that the Shuyun air transportation market will tend to improve, the

policy implementation will end from May 21, 2022 to July 20, 2022.

It should be emphasized that in these two months, the policy will be adjusted flexibly and dynamically according to market changes to meet the needs of civil aviation recovery and safe operation.

The Civil Aviation Administration said that the subsidy policy will bring the following four expected effects to the civil aviation industry:

(1) Drive the whole thing to be alive.

Airlines are the leaders of the civil aviation industry chain.

By subsidizing airlines, making flights take off, making all units of the civil aviation system and other related industries operate effectively, stabilizing the income and employment positions of front-line employees, and driving the aviation industry chain such as airports and air traffic control, as well as upstream and downstream extended industries such as manufacturing and tourism. The chain is an all-encompassing policy.

(2) Promote the smooth flow of logistics.

Maintaining the stable operation of passenger flights through financial subsidies and increasing the capacity of the belly hold, thereby increasing the total supply of air cargo, is conducive to giving full play to the role of aviation in “guaranteeing smooth flow” and promoting the stability of the supply chain of the aviation logistics industry chain.

(3) Consolidate the safety foundation.

Safety is the lifeline of civil aviation development.

The passenger flight subsidy is a basic policy for civil aviation to be impacted by the epidemic, the number of flights has been greatly reduced, and it is in a special stage. A more solid security foundation.

(4) Boost development confidence.

Maintaining a relatively stable flight volume through subsidies is conducive to stabilizing the basic supply of the air transport market and enhancing passenger travel expectations and confidence.

The flight subsidy has the advantages of direct, fast and quick results, which can effectively alleviate the current operating difficulties of airlines, especially small and medium-sized airlines. Development vitality, give full play to the role of the strategic industry of civil aviation, seek progress while maintaining stability, stabilize the economic market for the country's economic and social development, and make contributions to the civil aviation industry.