Notice of the Civil Aviation Administration of the Ministry of Finance on the Phased Implementation of Financial Subsidies for the Operation of Domestic Passenger Flights
The finance departments (bureaus) of all provinces, autonomous regions, municipalities directly under the Central Government, and cities under separate state planning, the Finance Bureau of Xinjiang Production and Construction Corps, all regional civil aviation administrations, and all transport airlines:
Since the beginning of this year, in response to the impact of the new crown pneumonia epidemic on the civil aviation industry, the Ministry of Finance, the Civil Aviation Administration and other relevant departments have issued a number of fiscal and tax policies in accordance with the decisions and arrangements of the Party Central Committee and the State Council to support the safety, stability and rescue development of the civil aviation industry. However, due to the repeated epidemics, rising oil prices and other factors, civil aviation companies still face some practical difficulties. In order to consolidate the foundation of civil aviation safety, with the goal of ensuring the minimum number of operating flights and ensuring safe flights, staged financial subsidies are now implemented for domestic passenger flights operated by domestic transport airlines. The relevant matters are hereby notified as follows:
1. Conditions for the initiation of financial subsidies
In principle, when the average daily domestic passenger flight volume is less than or equal to 4,500 flights per week (the minimum number of flights to maintain safe operation), financial subsidies will be activated.
2. Subsidy objects and scope
Domestic transport airlines operating domestic passenger flights that meet the following conditions at the same time are included in the scope of financial support.
(1) Domestic passenger flights, excluding Hong Kong, Macao and Taiwan flights, flights that undertake major emergency transportation tasks, transfer flights, business jets, etc.
(2) The average daily domestic passenger flight volume in actual operation does not exceed the minimum number of flights to maintain safe operation. Stopover flights are calculated according to the departure port of each flight segment.
(3) The average passenger load factor of each flight segment per week does not exceed 75%. When multiple transport airlines fly the same flight segment, the calculation shall be based on the weekly average passenger load factor of the flight segment of each company.
(4) The actual flight revenue cannot cover the variable cost.
3. Subsidy Standard and Duration
(1) Subsidies are given to the actual revenue of domestic passenger flights after deducting variable costs. The upper limit of the maximum loss subsidy standard is set at 24,000 yuan per hour.
(2) The policy implementation period is from May 21, 2022 to July 20, 2022.
4. Funding channels and payment methods
Subsidy funds are shared by the central and local governments. Among them, the central finance subsidizes 65%, 70% and 80% of the eastern, central and western regions respectively, and the local finance in the eastern, central and western regions bears 35%, 30% and 20% respectively.
The subsidy funds are allocated by the financial department of the place where the flight departure port is located (a municipality directly under the Central Government, a city under separate state planning or a city above the prefecture level, the same below). The central financial subsidy funds are included in the transfer payment and allocated to the relevant provincial financial departments (if the location of the flight departure port is a city under separate state planning, the provincial financial department refers to the financial department of the city under separate state planning, the same below), and the method of pre-allocation and then liquidation shall be adopted. After the implementation of the policy, 70% of the upper limit of the central financial subsidy funds will be allocated in two batches; the remaining 30% will be liquidated according to the specified standards according to the actual situation after the subsidy policy expires, and more refunds and less compensation.
The availability of local financial subsidy funds shall be reported to the Ministry of Finance and the Civil Aviation Administration in a timely manner by the financial department at the location of the flight departure port, together with the relevant regional administrations of civil aviation, after the funds are disbursed.
V. Application Review Procedure
(1) Within 5 working days after the end of each week, eligible domestic transport airlines may apply to the financial department of the place where the flight departs for the previous week’s flight subsidy, and provide the flight segment, frequency, flight duration (wheel block time) , passenger load factor, actual flight revenue, variable cost and other data, as well as relevant supporting materials.
(2) The financial department at the location of the flight departure port, together with the relevant regional administrations of civil aviation, shall, in accordance with the provisions of this notice, review the airline’s subsidy application based on the weekly domestic passenger flight schedule of the Civil Aviation Administration and other relevant data, and promptly report to the central and local authorities. The funds that should be subsidized by the government shall be fully allocated to the airlines.
(3) The relevant regional administrations of civil aviation shall, in conjunction with the provincial finance department, summarize and review the overall performance targets prepared by the finance department at the place where the flight departs, and report the achievement of the performance targets to the Civil Aviation Administration and the Ministry of Finance on a monthly basis.
(4) Within one month after the end of the policy implementation period, the relevant regional civil aviation administrations, together with the provincial finance departments, shall summarize and review the actual implementation of flight subsidies and the availability of local subsidy funds, and report to the Civil Aviation Administration and the Ministry of Finance. After the CAAC review, the fund settlement plan will be submitted to the Ministry of Finance, and the Ministry of Finance will liquidate the subsidy funds accordingly, and refund more and less.
6. Supervision and Management
(1) The Civil Aviation Administration shall comprehensively consider the situation of epidemic prevention and control, regional economic development, air transport market rules, passenger travel habits and actual flight conditions, rationally optimize airline policies, and make flight plans. Segments and their minimum number of flights to maintain safe operation are dynamically adjusted.
(2) The financial department where the flight departure port is located shall, in light of the actual situation, formulate detailed rules for the management of local subsidy funds, and the relevant regional civil aviation administrations, together with the provincial financial departments, shall report to the Ministry of Finance and the Civil Aviation Administration for the record after summarizing and reviewing them.
(3) Civil aviation-related regional administrations should closely follow the implementation effect of phased financial subsidies in conjunction with provincial financial departments, effectively give full play to the positive guiding role of policies, and promote domestic transport airlines to continuously increase the number of flights operated, improve the daily utilization rate of aircraft and Professional staff business proficiency.
(4) Domestic transport airlines should start from the overall situation of ensuring aviation safety, and truly use the subsidy funds to improve their safety service capabilities and make up for the loss of flight operations. Resolutely put an end to behaviors such as random adjustment of flights, malicious low-price competition or even fraudulent subsidy in order to obtain subsidy funds, and shall not use subsidy funds for construction projects and other expenditures that are not related to the operation of domestic passenger flights. After receiving the subsidy funds, the airline conducts accounting processing in accordance with the relevant provisions of the national accounting system.
(5) Domestic transport airlines shall be responsible for the authenticity and accuracy of the declaration materials; no unit or individual shall withhold or misappropriate the subsidy funds. If false or concealed reports are found in the audit, the company’s application qualification will be cancelled; for units and individuals who violate national laws, administrative regulations and relevant regulations, they will be strictly in accordance with the “Budget Law of the People’s Republic of China”, “Regulations on the Punishment of Financial Illegal Acts”, etc. regulations to be dealt with.
Civil Aviation Administration of the Ministry of Finance
May 25, 2022