The Chinese government should maintain the policy support introduced during the pandemic until the end of next year, as carriers are still losing money, an industry group that represents China’s airlines has suggested.
China should give financial and fiscal policy support to the industry, actively extend special emergency loans for civil aviation, and issue RMB 200 billion (USD 27.8 billion) of bonds, the China Air Transport Association said, as the nation’s air transport firms still face immense pressure.
Moreover, experts suggest allowing airlines to extend the maximum carryover period for losses incurred in 2021 and 2022 to 10 years from five years, enhance policy support for the operation of domestic aircraft, and cut taxes and fees related to their flight operations.
The industry’s ongoing losses are mainly due to the lag in the international market’s recovery, the real alternative offered by high-speed rail services in China, and the end of the high-profit cycle of air cargo transport, according to experts.
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