China Looks To Boost International Air Travel Following Financial Aid Package

Officials from the Department of #Transportation have verified that the number of regularly scheduled international passenger flights from #China would grow in the coming days. The decision comes as China unveils a massive economic stimulus package that contains numerous key provisions for the #country's #aviation sector.

The end-of-May announcement of a 33-point recovery plan included the gradual reopening of #international crossings as well as a cash incentive for airlines to maintain internal connectivity services. The steps are aimed at stabilising frontline airline employees' pay and offsetting operating costs, particularly for small and medium-sized Chinese carriers.

The reopening of international boundaries in stages.

The reintroduction of international air service to mainland China was one of the package's most important components. Travel limitations imposed as a result of the epidemic have stifled international travel, with China maintaining tough border regulations throughout the outbreak.

The Chinese Civil Aviation Administration (CAAC) announced the "Five One" policy in March 2020, which said that Chinese airlines could only travel once a week on one route to any country, while foreign airlines may only fly once a week to China. According to the International Air Transport Association, although international air traffic inside Asia increased in frequency in the first quarter of 2022, it only rebounded to 7% of its pre-pandemic level in 2019. (IATA).

Liang Nan, the Director of the Ministry of Transport, stated to reporters at a press conference this week that the administration is in talks with various nations to progressively enhance regular international passenger flights to meet travel demand.

The operation of international flights, according to Liang, is critical to the air transportation industry's long-term development, the mobility of Chinese and international travellers, and China's overall economic growth

The administration has taken scientific, precise, and dynamic measures to manage and offer international passenger flight services since the outbreak of the COVID-19 epidemic, effectively preventing the spread of the epidemic across borders while maintaining basic access to regular international passenger routes with 54 countries.

On March 27, 2020, Air China jets are seen parked on the tarmac at Beijing Capital Airport. China now has direct flight ties with 54 countries and is working to expand that number gradually. According to CAAC figures, just over 12 million passenger trips were taken in May, jumping 53.2 percent from the previous month.

In the next months, several key markets will resume direct flights to China. China Southern, the country's largest airline, said that it would increase its foreign schedule from 36 to 48 flights per week. As a result of the change, service will be restored to seven more nations. Guangzhou is connected to Myanmar's Yangon, Cambodia's Phnom Penh, and India's Delhi International Airport.

Uganda will be one of the more interesting destinations to receive service. Weekly flights between Entebbe International Airport and Guangzhou have been approved, extending an existing freight route. According to 2019 travel records, more than 25,000 travellers flew from China to Uganda before the COVID-19 epidemic. Uganda Airlines recently announced that direct flights to London Heathrow will resume in November aboard an Airbus A330-800neo.

After a two-year gap, flights to Nepal have now restarted. A weekly service from Kathmandu Tribhuvan International Airport (KTM) to Kunming Changshui International Airport (KMG) started earlier this month, according to Simple Flying. Air China, which had restarted service from Chengdu, was also planning a return to Kathmandu. Several additional sites in the region are also said to be in the process of expanding their capacity. An additional weekly flight to Vietnam has been granted. Thai Airways International is also due to start flights to China this month after being allowed twice-weekly flights, up from one per week previously.

On August 12, 2020, a Hainan Airlines Boeing 737 aeroplane bearing the motif of the Hainan Free Trade Port is stationed at Haikou Meilan International Airport. This week, Hainan Airlines will resume flights to Rome.

Flights to Europe are expected to grow as well, with Hainan Airlines commencing direct flights from Chongqing, Sichuan Province in Southwest China, to Rome on June 23rd. Since the pandemic, the Rome flight is the first intercontinental international passenger route from Chongqing.

Because most international flights have yet to resume, the stimulus plan contained a provision to help offset the cost of domestic flights. From May 21st to July 20th, a stimulus package worth 150 billion yuan (USD 22.4 billion) has been set aside to subsidise domestic loss-making domestic airlines, with another 200 billion yuan in bonds.

When the average daily domestic passenger flight volume falls below 4,500, the financial subsidies will be activated. The minimum number of daily flights required to sustain safe operation is known as the threshold. The quota is only for mainland flights and excludes flights to Hong Kong, Macau, and Taiwan.

Furthermore, the subsidies are only available when the average passenger load factor per airline for each flight segment does not reach 75%. In weeks when domestic airlines lose money, they can request for compensation of up to 24,000 yuan ($3,564) per flying hour.

The subsidies were established to assist cover the expense of domestic flights that are losing money.

According to sources, the subsidy scheme was halted on June 4th, amid concerns that airlines could lower services to collect the subsidies. It's still unclear if payments will continue for the rest of the month or for the rest of the year.