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Fourteen Departments Issue a Package of Policies in Support of the Civil Aviation Industry04/03/2022

Fourteen departments including the National Development and Reform Commission issued Policies on Promoting the Recovery and Development of the Industries with Difficulties in the Service Sector. In addition to ten inclusive measures for civil aviation enterprises, there are five policies tailored to the needs of civil aviation industry:

1. In 2022, the advance payment of value-added tax by air transport enterprises will be suspended for one year.

2. Local governments may coordinate central-to-local transfer payments and their own financial resources to support airlines and airports in COVID-19 prevention and control according to actual needs.

3. Financial support for civil aviation infrastructure construction will be strengthened through resource coordination. The central budget will continue to provide subsidies for air routes and safety capacity building to eligible entities through the Civil Aviation Development Fund. The government will continue to provide subsidies for the operation and safety capacity building of eligible small and medium-sized airports and directly affiliated airports through the Civil Aviation Development. It will provide discounts for civil aviation infrastructure loans and provide investment subsidies for the construction of airports and air traffic control projects. The government encourages local financial departments to support the construction of related projects.

4. Measures will be taken to promote the negotiation between China National Aviation Fuel Group and upstream enterprises to exempt the cost of maritime expenses (2 US dollars/barrel) and port transportation fees (50 yuan/ton) included in the price of aviation fuel.

5. Banks and financial institutions are encouraged to increase credit for hub airports. Qualified airlines are encouraged to issue corporate credit bonds to expand financing channels. For airlines and civil airports severely affected by COVID-19, a green channel will be launched to help them get registered and issue debt and other financing instruments.

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