The Ministry of Finance ("MOF") and the Civil Aviation Administration of China ("CAAC") have recently issued the Circular on Implementing the Monetary Support Policy for Stabilizing and Enhancing the International Air Freight Capacity by Civil Aviation Carriers during the Epidemic Prevention and Control Period (the "Circular"), stating that the policy is effective from April 1, 2020 till June 30, 2020.
The Circular reads that during the ongoing epidemic prevention and control, monetary support will be provided to aircraft cabin modification schemes for cargo transport (the "cabin modification schemes") that are executed according to the design plans approved by the China's civil aviation airworthiness certification authority, and to international cargo flights without passengers between the domestic airports in China (excluding Hong Kong, Macao and Taiwan region) and foreign airports that use the air passenger transport authorization as of April 1, 2020 (the "international cargo flights without passengers"). The Circular further clarifies that for each cabin modification scheme, the subsidy will be offered to cover 80% of the costs of modification, specifically at two different rates according to the aircraft type: a maximum of CNY 800,000 for single-aisle aircraft each and a maximum of CNY1.45 million for double-aisle aircraft each. Meanwhile, for international cargo flights without passengers, the incentive scheme is designed at eight levels according to the flight distance and the maximum take-off weight.