August 7, 2022

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China’s civil aviation shows recovery after government aid

According to the National Administration of that industry, the performance of airlines improved significantly in June, for example, there were more than 10,000 daily flights between 24 and 26, which is 60 percent of the number recorded before the outbreak of the Covid-19 epidemic in 2020.

He also indicated an improvement in market confidence and the expectation of a sustainable increase due to the approaching high summer travel season, there are plans to expand international routes and the country has eased monitoring and prevention measures against Covid-19, although the borders are still closed.

Civil aviation is one of the sectors most affected by the epidemic battle in China, as the strategy includes widespread lockdowns, travel restrictions and strict movement control.

The other blow was the accident last March of a China Eastern Airlines plane that left 132 dead, after which the reported anomaly occurred in the Tibet Airlines device, which left the runway, caught fire and recorded 36 injuries.

In mid-May, the government launched a plan that allocated 5 billion yuan ($735 million) to revive the industry and will run until July 20, when the peak summer travel season begins.

However, if before that date all infectious sources of Covid-19 are brought under control and airlines are able to normalize their operations, the government will reduce subsidies and respect the fundamental rules of the market.

In addition, state aid is intended to cover the basic costs of these companies and thus ensure the safety of each flight, restore growth prospects, and maintain employee training.

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China is currently conducting negotiations with several countries with the aim of increasing international passenger flights, and the authorities have stressed the usefulness of such a measure to meet the needs in people-to-people exchanges, the national economy and the sustainable development of the industry.

ode / ymr