Published on : Thursday, March 12, 2020
On Thursday the China’a aviation regulator mentioned that the drop has caused a 21 bn yuan fall in revenue.
The Chinese government had earlier announced fresh measures to support its struggling carriers earlier this week.
Due to travel restrictions the global airline industry is facing a massive downturn in passenger numbers.
Subsidies to Chinese airlines and additional funding for international flights will be provided by the Civil Aviation Administration of China (CAAC).
In order to help carriers cut costs the take-off and landing charges are also being reduced during the downturn. During 2020 the airport infrastructure spending will be increased by 100 bn yuan.
The epicenter of the coronavirus outbreak is China and saw flights drastically cut inside the country as well and internationally since the late January as the pandemic spread.
China Southern, China Eastern, Air China and Hainan Airlines are China’s biggest airlines. HNA , the parent company of Hainan will be reportedly taken over by China and the airline assets will be sold off.
The key management roles at the heavily indebted HNA Group was taken over by the Chinese government officials.
Services to mainland China has been cancelled by most of the international carriers and several have pushed the suspensions into April.
After the US President Donald Trump’s travel ban between the US and Europe the airline industry felt another major blow. More than the Asian-based ones this ban is likely to hit American and European airlines.