China has begun to hand out subsidies to airlines and consumers buying durable goods such as cars and electronics as policymakers step up support for businesses hit hard by Covid control measures, reports Caixin. It comes after more modest stimulus efforts failed to shore up the economy in the face of strict “zero-Covid” lockdowns that have slowed business activity in many regions to a crawl.
Airlines will receive compensation of as much as RMB 24,000 ($3,564) per flying hour in weeks where they lose money and their average passenger flight is less than 75% full, according to a Thursday statement jointly issued by the Ministry of Finance and Civil Aviation Administration of China.
The industry-wide subsidy program will be effective as long as the average daily number of domestic passenger flights doesn’t exceed 4,500 in a week, and some other conditions are met.
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