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Shares of Chinese airlines and airports rally on news of government capital injection to address difficulties caused by the impacts of the Covid outbreaks. China Southern Airlines is surging more than 5 % in Hong Kong, Air China up 3.7%, China Eastern Airlines up 2.3%, and Beijing Airport up 2.4%.
The Civil Aviation Administration of China (CAAC) said at a press conference on Tuesday that the regulator was working with other related government departments to introduce several measures to support the industry, saying that it will make effort to inject 3 billion yuan each to Air China, China Easter Airlines and China Southern Airlines and 2 billion yuan to Beijing Airport. The regulator will allocate the first batch of subsidies to domestic passenger flights of 3.29 billion yuan, it said.
Value-added tax rebates to the civil aviation companies reached about 12.5 billion yuan in the first half of the year, it said.
In addition, the regulator will strengthen communications with other countries to gradually increase the number of international flights, according to Chinese news outlet The Paper, citing Xu Qing, an official from the CAAC.
Considering the needs of Chinese students studying overseas and other Chinese citizens in foreign countries, the CAAC is steadily resuming international passenger flights based on the country’s epidemic situation, the recently optimized Covid-19 control measures and local capacity of receiving international flights, said Xu.
CAAC data showed that, in the week of July 4 – 10, the number of passenger flights reached about 71,000 units, rising by 12.1% from the previous week, largely in line with the same period last year. Chinese airlines carried 7.38 million passengers during the period, rising by 13.8% on week, though down 31.25 from a year earlier, showed the data.
