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5 Million Passengers Benefiting from the Enlarged Scope of Regional Airliner by CAAC and the Ministry of Finance08/05/2019

Recently, CAAC and the Ministry of Finance jointly issued a notice to expand the scope of regional airliner to include 13 types of aircraft up from seven. Major feeder airliners such as ARJ21-700 and CRJ-900 are now included in the scope, and the notice came into force from April 1. This means that more passengers traveling on regional airliners will no longer have to pay for the Civil Aviation Development Fund.

In order to encourage airlines to operate using regional airliners and to promote the development of regional aviation, the current Civil Aviation Development Fund policy provides preferential support for seven types of aircraft including MA60, and passengers travelling on such aircraft are exempted from paying the Civil Aviation Development Fund. With the development of the air transport market and the aircraft manufacturing industry, CAAC has adjusted the types of regional airliners together with the Ministry of Finance, so as to better exert the guiding role of financial policies.

The adjustment of the regional aircraft type is an important measure of CAAC to implement the national strategy of taxes and fees cut. It is estimated that in the current market, implementation of this policy will benefit nearly 5 million passengers per year, saving a travel cost of about 240 million yuan. With the increase of air transport market, more passengers will enjoy greater benefits.