China Cuts Flight Costs by Adding More Jets to Fund Exemption List
Chen Shanshan
DATE:  Apr 12 2019
/ SOURCE:  yicai
China Cuts Flight Costs by Adding More Jets to Fund Exemption List China Cuts Flight Costs by Adding More Jets to Fund Exemption List

(Yicai Global) April 12 -- China will triple the number of aircraft models exempt from paying into an industrial development fund and the estimated savings of CNY240 million (USD35.7 million) will also benefit passengers.

A total of 20 models including the Comac ARJ21-700 and the Bombardier CRJ-900 will gain exemption from Civil Aviation Development Fund contributions from July, the industry regulator said in a statement, adding that some five million tourists stand to benefit from the move each year.

China has collected contributions for the fund since 2012 with both airlines and passengers having to pay. Flyers need to pay an extra CNY50 (USD7.4) and CNY90 for each domestic and international flight ticket, respectively. 

The government aims to reduce the tax burden of airlines through the move, Yicai Global learned from the Civil Aviation Administration of China. Airlines will continue to pay half the fee while passengers will not need to contribute. 

China has collected over CNY100 billion for the fund so far, with airlines contributing CNY12 billion (USD1.8 billion) last year. Spring Airlines pays in CNY300 million annually, spokesperson Zhang Wuan disclosed. The company is expected to save CNY75 million (USD11.2 million) this year thanks to the new policy. 

Editor: William Clegg

Follow Yicai Global on
Keywords:   Civil Aviation,Aircraft