China News Service, Beijing, May 26 (Reporter Zhou Yin) The Civil Aviation Administration of China disclosed on the 26th that from May 21 to July 20 this year, domestic airlines will provide subsidy policy support for eligible domestic passenger flights.
Xiong Yanhua, director of the Finance Department of the Civil Aviation Administration of China, said at a press conference on the 26th that since the beginning of this year, due to the continuous and repeated epidemics, especially in March, local clustered epidemics frequently occurred, and the civil aviation transportation production once showed a cliff-like decline. The loss is serious, and it cannot meet the needs of the current national economic and social development for air transportation, which 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, China has officially issued a period of financial subsidies for the operation of domestic passenger flights.
The main content of the policy is to focus on ensuring the basic investment in the normalized and safe flight of the civil aviation industry, and encourage 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.
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.
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.
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%.
The implementation of this policy will end from May 21, 2022 to July 20, 2022.
The Civil Aviation Administration emphasized that in the 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.
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