Beijing - The International Air Transport Association (IATA) has welcomed the Civil Aviation Administration of China’s (CAAC) six months suspension of a 10% landing fee surcharge at Chinese airports. The suspension took effect on 1 January 2009.

“The airline industry is back in intensive care. Airlines will lose US$2.5 billion this year following a loss of US$5 billion in 2008. And efficiency is the most effective medicine. Every cost reduction will help. We are facing our worst revenue environment in 50 years. While oil prices have fallen from the peak of US$147 in July last year, the current economic crisis is having a huge impact on demand. International passenger dropped 4.6% in November, while international cargo plunged 13.5%, the largest drop since 2001,” said Giovanni Bisignani, IATA’s Director General and CEO.

The suspension of the landing fee surcharge was part of a ten-point plan announced by the CAAC to support aviation industry in China during the global economic slowdown. The wide ranging ten-point plan announced by the CAAC includes measures to enhance safety, reductions in taxes, investing in infrastructure, as well as optimizing the airspace and air routes.

“I congratulate the CAAC. They have understood the challenges that the industry faces. Their efforts to deliver efficiencies with a six-month suspension of the 10% landing fee surcharge is an example for others to follow. We look forward to working closely with them to strengthen China's aviation industry with further efficiency gains,” said Bisignani.

Notes for Editors:

  • IATA (International Air Transport Association) represents some 230 airlines comprising 93% of scheduled international air traffic.