News
China to subsidise operations of airlines hit by recent COVID outbreaks
May 27th 2022
China's Ministry of Finance and the Civil Aviation Administration of China (CAAC) have announced the government will provide financial subsidies for local airlines to counter the recent twin impacts of urban shutdowns from COVID-19 and rising fuel prices. Read More » The financial subsidies will be available to July 20. An airline will be eligible for funding support if its average flight rota falls below 4,500 a week and its passenger load factor is less than 75%. The main goal of the subsidy scheme was to guarantee variable costs, the joint statement said. The maximum amount payable to a carrier will be 24,000 yuan (US$3,562) per hour for loss-making flights. Fresh outbreaks of COVID-19 variants in several mainland cities, particularly Shanghai, have led to stay-at-home orders for multi millions of China’s citizens, thereby reducing demand for air travel.
