Chinese Airlines Face New Tax Hike For Airport Costs
The Civil Aviation Administration of China (CAAC) plans to increase the annual contribution of local airlines to the China Airport Construction and Development Fund (CACDF) from 5 percent to 6 percent of their revenue starting next year.
Managed by the CAAC, the fund subsidizes the operations of loss-making regional airports and partly funds the construction of new facilities.
Last year 139 of the country’s airports posted a combined loss of $300.2 million, amounting to an increase of 13.1 percent over the previous year.
Most of the secondary airports in question do not host enough flights to make a profit and handle less than 1 million passengers a year.
Under China’s 12th Five-Year Plan (2011-2015), secondary facilities in China’s less-developed western region will account for 45 of the 60 new airports scheduled for construction, as the country aims to integrate such areas into the country’s air transport grid.