Notice of CAAC on Policies Supporting Active Response to COVID-19 Outbreak

March 9, 2020

To All CAAC Regional Administrations, Transport (General Aviation) Airlines, Aviation Fuel Companies, TravelSky, Airport Companies and Subordinate Entities of CAAC:

In order to implement the decisions and deployments of the CPC Central Committee and the State Council, actively respond to the impact of the COVID-19 outbreak on civil aviation industry in accordance with the work requirements of “ensuring operation safety, emergency transport, risks under control and measures taken precisely”, effectively alleviate and address difficulties facing civil aviation enterprises development and promote orderly resumption of work and production with targeted measures, policies supporting stable development of the civil aviation industry are hereby make public as follows:

I. Proactive Financial and Economic Policies

1. Implementing favorable policies including exemption of civil aviation development fund paid by airlines for the landing, and ensuring preferential measures effectively implemented in the civil aviation industry.

2. Implementing policies of financial support from the central government treasury during the COVID-19 outbreak to international scheduled passenger flights and major transport flight missions deployed by the Joint Prevention and Control Mechanism of the State Council.

3. Incentive support for the epidemic containment missions carried out by general aviation enterprises by fully leveraging on existing subsidy policies.

II. Fee Reductions and Burden Alleviation

4. Airport authorities should exempt airlines from charges associated with operation of air transport services and ground handling for major transport flight missions deployed by the Joint Prevention and Control Mechanism of the State Council; and air traffic control entities shall exempt airlines from approach command charges and route navigation services charges.

5. Reducing charges for airports and air navigation services on domestic and foreign airlines and airlines from Hong Kong, Macao and Taiwan regions. Reducing benchmark for landing charges at CAT I and II airports by 10%, and waiving parking charges; reducing route air navigation services charges (over-flight excluded) by 10%; and reducing benchmark of difference between purchase and sales of jet fuel for domestic flights of domestic airlines by 8%. The aforementioned charge reduction policies shall be effective since January 23, 2020, till further notice which depends on epidemic development.

6. Information service providers and subordinate public entities and companies of CAAC are encouraged to reduce current charges as appropriate.

III. Infrastructure Investment Expansion

7. Airport authorities, relevant operation support entities and civil aviation medicine research institutions may apply for subsidies of civil aviation development fund on urgent procurements or R&D of dedicated fixed facilities and equipment for epidemic containment purposes. Details of applications will be reviewed by CAAC or its regional administrations before approval of subsidies.

8. Supporting orderly start and resumption of major construction projects in a scientific manner. Online channels are available for project applications to facilitate acceleration of pre-project formalities and coordinate solutions for priorities and difficult problems with project start and resumption; major and emergency construction projects are encouraged to use available trade centers to accelerate bidding process; and major infrastructure projects of hub airport building, poverty alleviation and Blue Sky Protection Campaign will be started or resumed as a matter of priority, aiming to complete an annual fixed asset investment of 100 billion yuan.

9. Implementing current civil aviation development fund related policies to better support airlines in improving safety capabilities. Expanding investments in airlines’ projects of safety, security, flight operation quality oversight and application of satellite navigation and other new technologies. Supporting safety upgrade modifications of airlines’ airborne equipment, and arranging full subsidy from civil aviation development fund for B737NG aircraft data frame expansion projects.

10. Supporting planning and construction of strategic infrastructure projects of air traffic control, information technology, fuel supply and others related to national, industrial and public interests by increasing government funding.

IV. Air Transport Development Facilitation

11. Increasing policy flexibility for introducing aircraft transport capacity, encouraging and guiding airlines to optimize current capacity, and streamlining capacity introduction procedures.

12. Improving approval administration of routes and flights to enable airlines to make dynamic adjustment to flight plans, international routes structure and traffic rights entitlement and capacity in line with market demands, by streamlining routes and flights approval procedures and slot coordination procedures, and shortening the timeline for approval on start or resumption of international route operation.

13. Extending the flight schedule for the 2019 winter season till May 2, suspending evaluation of airlines regarding flight schedule execution rate, slot resource utilization rate and flight regularity rate. Actively developing slot policies for flight rescheduling taking into consideration the needs of airlines to resume operation, exempting domestic flights from evaluation of slot execution rate for the 2020 summer season, and allowing orderly circulation of slots in domestic, international and regional slot pools in light of changes in market demands for the 2020 summer season.

14. Actively supporting and assisting airlines with their special operation requirements during the COVID-19 outbreak and traffic right and slot issues encountered in resumption of international route operation, and maintaining close communication and coordination with relevant national civil aviation authorities regarding the aforementioned issues.

V. Administrative Service Optimization

15. Adjusting working methods of administrative approval by enabling online processing and off-site processing channels, optimizing approval procedures, introducing informing and committing mechanism to improve approval efficiency.

16. Transforming regulation method, improving oversight performance, reducing on-site supervision and making full use of new regulation modes such as off-site supervision.

Regional administrations of CAAC should strengthen supervision and inspection to ensure effective implementation of the policies and measures above. Airlines should enhance sense of responsibility by improving internal management, expanding sources of income while reducing expenditure, and tapping potentials and increasing performance, to contribute to the safe and stable operation of the industry. Supporting entities should enhance their stance by serving the big picture and be dedicated to providing support for the safe and stable operation of the industry.

Civil Aviation Administration of China

(Translation for reference)