China Announces Financial Aid to Airline Companies

The Chinese government has announced that they will provide financial support to local airline companies that are having a hard time due to the coronavirus.

According to the news of the Chinese News Agency Xinhua, in the circular announced by the Ministry of Finance and the Civil Aviation Administration, it was noted that weekly incentive payments will be made to the airline companies with a daily passenger number below 4 thousand 500 to cover their losses between May 21 and July 20. In the published circular, it was stated that the aid will be at the level of 24 thousand yuan (approximately 3 thousand 595 dollars) per hour. Strict quarantine rules and travel restrictions applied in many cities in China since the first days of 2022 due to the epidemics caused by Omicron cases caused a decrease in domestic passenger traffic. In addition, the decrease in international flights due to visa and travel restrictions applied in the country since the beginning of the epidemic caused problems for Chinese airline companies. In April, the impact of the coronavirus epidemic restrictions on the economy was felt to a large extent in China's industrial city, Shanghai, which hosts a large population and hosts critical industries and business lines. The economic performance, measured at many sites, had regressed to the lowest levels since the first cases of Kovid-19 were seen in the city of Wuhan. The Chinese government had instructed public institutions and local governments to include incentive policies to balance the impact of restrictions on economic growth. He underlined that aid will continue to airline companies that are having a hard time due to the Chinese pandemic.