Zhongxin Finance, May 26. The website of the Ministry of Finance published the "Notice of the Civil Aviation Administration of the Ministry of Finance on Phased Implementation of Financial Subsidies for Domestic Passenger Flights" on the website of the Ministry of Finance on the 26th.

  The notice stated that since the beginning of this year, in response to the impact of the new crown pneumonia epidemic on the civil aviation industry, the Ministry of Finance, the Civil Aviation Administration and other relevant departments have issued a number of fiscal and tax policies to support the safety, stability and rescue development of the civil aviation industry, and to a certain extent, alleviated the civil aviation enterprises. However, due to the repeated epidemics, rising oil prices and other factors, civil aviation enterprises still face some practical difficulties.

In order to consolidate the foundation of civil aviation safety, with the goal of ensuring the minimum number of operating flights and ensuring safe flights, staged financial subsidies are now implemented for domestic passenger flights operated by domestic transport airlines.

  According to the notice, in principle, when the average daily domestic passenger flight volume is less than or equal to 4,500 flights per week (the minimum number of flights to maintain safe operation), financial subsidies will be activated.

  The objects and scope of subsidies are as follows:

  Domestic transport airlines operating domestic passenger flights that meet the following conditions at the same time are included in the scope of financial support.

  (1) Domestic passenger flights, excluding Hong Kong, Macao and Taiwan flights, flights that undertake major emergency transportation tasks, transfer flights, business jets, etc.

  (2) The average daily domestic passenger flight volume in actual operation does not exceed the minimum number of flights to maintain safe operation.

Stopover flights are calculated according to the departure port of each flight segment.

  (3) The average passenger load factor of each flight segment per week does not exceed 75%.

When multiple transport airlines fly the same flight segment, the calculation is based on the weekly average passenger load factor of the flight segment of each company.

  (4) The actual revenue of the flight cannot cover the variable cost.

  The notice clarifies that subsidies will be given to the actual revenue of domestic passenger flights after deducting variable costs.

The upper limit of the maximum loss subsidy standard is set at 24,000 yuan per hour.

The policy implementation period is from May 21, 2022 to July 20, 2022.

  Subsidy funds are shared by the central and local governments.

Among them, the central finance subsidizes 65%, 70% and 80% of the eastern, central and western regions respectively, and the local finance in the eastern, central and western regions bears 35%, 30% and 20% respectively.

  The subsidy funds are allocated by the financial department of the place where the flight departure port is located (a municipality directly under the Central Government, a city under separate state planning or a city above the prefecture level, the same below).

The central financial subsidy funds are included in the transfer payment and allocated to the relevant provincial-level financial departments (if the location of the flight departure port is a city under separate state planning, the provincial-level financial department refers to the financial department of the city under separate state planning, the same below), which shall be pre-allocated and then liquidated.

After the implementation of the policy, 70% of the upper limit of the central financial subsidy funds will be pre-allocated in two batches; the remaining 30% will be liquidated according to the prescribed standards according to the actual situation after the subsidy policy expires.

  The availability of local financial subsidy funds shall be reported to the Ministry of Finance and the Civil Aviation Administration in a timely manner by the financial department at the location of the flight departure port, together with the relevant regional administrations of civil aviation, after the funds are disbursed.

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