China launches an airline subsidy program

Created on 03.06.2022 15:16

The Ministry of Finance of China and the Civil Aviation Administration of China (CAAC) have presented an anti-crisis package to support domestic aviation market. The local aviation industry is experiencing severe consequences from the ongoing lockdowns and closed borders associated with COVID-19.

Rising fuel prices put additional pressure on the financial position of airlines. The proposed program is aimed at supporting the minimum number of flights required in order to ensure the flight safety and the state transport connectivity. Subsidies will be provided if the average daily number of domestic flights per week drops below 4,500. Payments will be amounted 24,000 yuan ($3,590) per hour. The program will continue from May 21 to July 20, 2022.

Chinese airlines are suffering huge losses owing to massive flight cancellations. Over the past month, lockdowns have paralyzed the largest cities, including Shanghai and Beijing. According to the CAAS, the aviation industry's losses will be 82.3 billion yuan in 2022.

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