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Original title: The civil aviation industry with a loss of 80 billion ushered in a turnaround, and financial subsidies will enter the market directly
Source: travel a guest
The maximum subsidy is 24,000 yuan per hour, which basically guarantees that the airline does not lose money.Financial subsidies are directly effective and can effectively alleviate the operating difficulties of airlines, especially small and medium-sized airlines.
Text|Wang Jingyi Editor | Shi Zhiliang
In April, the production indicators of civil aviation transportation dropped sharply, and financial subsidies for passenger flights came into being.
travelFrom the regular press conference of the Civil Aviation Administration held on May 26, we learned that since May 21, domestic passenger flights operated by domestic airlines will receive cash from the finance if the income cannot cover variable costs. Subsidy support, the subsidy cap is 24,000 yuan per hour.
Xiong Yanhua, director of the Finance Department of the Civil Aviation Administration, said that this time, subsidies will be given to the actual flight revenue after deducting the loss of variable costs. The number of flights involved is an average of 4,500 flights per day, and the policy will be implemented for two months. The subsidy funds are jointly borne by the central and local finances, with the central finance generally bearing about 70% and the local finance about 30%.
“Now the hourly cost of a narrow-body airliner is about 40,000 yuan. According to the principle of the maximum subsidy of 24,000 yuan, the airline’s sales pressure is indeed much less.”travelAnalysis, “Recently, the air fare is low, and the income per passenger per hour is about 200 yuan. The 50% occupancy rate of a 737 passenger plane is about 80 people, and the income is about 16,000 yuan per hour. After adding subsidies, it can barely be collected. If there was no subsidy in the past, even if the 737 passenger plane was full at the price of 200 yuan, the airline would still lose money, and naturally it would need to reduce flights.”
Lin Zhijie, an insider in the civil aviation industry, analyzed that this policy has three main functions: first, to ensure economic exchanges, to ensure that domestic flights are continuous, and some passengers who need to travel will fly; second, to ensure operational safety, and maintain the status and skills of the crew. It is helpful to improve the safety margin; the third is to stabilize the income of employees and protect the basic income of the crew.
Xiong Yanhua pointed out that the subsidy policy is expected to have four effects: by subsidizing airlines, allowing flights to fly, enabling all units of the civil aviation system and other related industries to operate effectively, stabilizing the income and employment positions of front-line employees, and driving all activities; cabin capacity, increase the total supply of air cargo, and promote the smooth flow of logistics; maintain the basic flight volume of aircrews and consolidate the safety foundation; enhance passenger travel expectations and boost confidence in the development of the industry.
The background of the introduction of the subsidy policy is the sluggish performance of civil aviation in April. According to official statistics, the passenger traffic volume of civil aviation dropped by 84.6% year-on-year in April, and the daily utilization rate of aircraft dropped from 8.6 hours to 2.2 hours.
Wu Shijie, deputy director of the Aviation Safety Office of the Civil Aviation Administration, introduced at the press conference that in April, the industry’s total transportation turnover, passenger transportation, and cargo and mail transportation were 2.95 billion ton-kilometers, 7.88 million person-times, and 420,000 tons, respectively, down year-on-year. 68.0%, 84.6% and 35.9%, equivalent to 28.1%, 14.8% and 69.8% in the same period in 2019, respectively. The flight efficiency indicator further declined. The daily utilization rate of aircraft across the industry was 2.2 hours, a year-on-year decrease of 6.4 hours.
“Since the beginning of this year, due to the continuous and repeated epidemics, especially in March, the local clustered epidemics frequently occurred, the civil aviation production and operation situation has deteriorated sharply, transportation production once showed a cliff-like decline, and the industry as a whole suffered serious losses, which cannot adapt to the current national economic and social development. The need for air transportation has become one of the prominent shortcomings.” Xiong Yanhua said.
The aforementioned industry insiderstravelAnalysis, the original text of the document is clear from the beginning, the subsidy is to consolidate the foundation of civil aviation safety, with the goal of ensuring the minimum number of operating flights and ensuring safe flights. “The minimum number of operating flights is of great significance for safe flight. Pilots and other civil aviation staff need to maintain and accumulate experience in practice to ensure the proficiency of their skills. This is similar to our usual driving on the road – if you don’t drive for a long time, you can drive safely. Skills are bound to suffer.”
Lan Xiang, Dean of Qunar Big Data Research InstitutetravelAnalysis, the introduction of this subsidy policy is conducive to the relief of domestic airlines, and effectively stop the bleeding of airlines’ losses this year. After May 1st, the civil aviation passenger market has slowly recovered, especially in the Guangzhou-Shenzhen and Chengdu-Chongqing areas where the epidemic has recovered well. Judging from the Qunar platform, the number of air ticket bookings for business trunk flights between Hangzhou and Guangzhou-Shenzhen has increased rapidly.
After May 1, the domestic flight volume is slowly increasing.Fei Changzhun provides totravelThe data shows that in the first 3 days of May, the daily flight volume was 3,000; then it continued to increase, reaching about 4,000 in the middle of the month, and it once rose to more than 5,000 on May 20; the domestic flight volume on May 25 It is 4551 classes, and it has basically stabilized at the 4500 class level of the subsidy upper limit recently.
Lan Xiang believes that the Dragon Boat Festival civil aviation may usher in a turning point in travel in 2022, and the number of air ticket bookings for the Dragon Boat Festival holiday has increased by 30% from the previous month. Among them, the number of air ticket bookings in Guangzhou-Shenzhen, Chengdu-Chongqing, Hainan and other places has increased the most. Qunar big data shows that the most popular destinations for Dragon Boat tickets are: Shenzhen, Haikou, Guangzhou, Sanya, Chengdu, Hangzhou, Xi’an, Kunming, Harbin, and Dalian. The routes between Shenzhen and the Chengdu-Chongqing area account for more than half of the popular routes.
The Civil Aviation Administration also pointed out that considering that the Shuyun air transport market will tend to improve, the policy implementation will end from May 21, 2022 to July 20, 2022. During these two months, the policy will be adjusted flexibly and dynamically according to market changes to meet the needs of civil aviation recovery and safe operation.
In response to the bailout of the civil aviation industry, a number of policies have been introduced recently.
According to a report by Xinhua News Agency on May 23, Premier Li Keqiang of the State Council hosted an executive meeting of the State Council to further deploy a package of measures to stabilize the economy, which mentioned: an increase of 150 billion yuan in civil aviation emergency loans and support for the aviation industry to issue 200 billion yuan of bonds. Orderly increase domestic and international passenger flights, and formulate measures to facilitate personnel exchanges between foreign companies.
Premier Li Keqiang of the State Council chaired an executive meeting of the State Council on April 6 and proposed that five industries, including civil aviation, are classified as extremely difficult industries, and the payment of endowment insurance premiums will be postponed in the second quarter of this year, and will be included in the policy scope of phased deferred payment of unemployment and work-related injury insurance premiums. To ease the financial pressure of the industry.
In response to the State Council’s request, relief policies in many places have also been released. On May 24, the Shanghai Municipal Human Resources and Social Security Bureau and other four departments jointly issued the “Notice on the Phased Implementation of the City’s Policies on Deferring Enterprises’ Social Insurance Premium Payments” in the city’s poverty-stricken industries. The units of social insurance premiums should pay part of the policy, and the types of deferred payment insurance will be expanded from the endowment insurance, unemployment insurance, and work-related injury insurance stipulated by the state to medical insurance (including maternity insurance).
“Flight subsidy has the advantages of direct, fast and quick results, which can effectively alleviate the current operating difficulties of airlines, especially small and medium-sized airlines, and form a combined punch with other rescue policies for civil aviation, which is conducive to air transport enterprises getting out of the predicament as soon as possible and enhancing development. Vitality.” Xiong Yanhua said.
Since the outbreak of the epidemic in 2020, the civil aviation industry has continued to suffer large losses. The “2021 Civil Aviation Industry Development Statistical Bulletin” shows that in 2021, including airlines, airports, and security companies, the entire civil aviation industry will achieve a cumulative operating income of 752.92 billion yuan, a year-on-year increase of 21.5%; a loss of 84.25 billion yuan, a year-on-year decrease of 18.71 billion yuan .
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