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4.2 billion yuan airport fees defaulted

By Tu Lei (chinadaily.com.cn)
Updated: 2008-11-12 17:37

The China Civil Airports Association lists 29 domestic aviation companies have not paid up their airport fees this year, with the defaulted sum of 17 airports reaching 4.2 billion yuan ($615 million) up until October of this year, according to today's edition of National Business Daily.

The list includes the private-owned UEAIR, as well as China Eastern Airlines, and Hainan Airlines as the top three offenders.

The association regards these three companies' unpaid airport fees amount to 40 percent of the total amount in the past over three months.

Sources in the association said the airport fees account for 60 percent of airports' income, and some small- and medium-sized airports have reported losses.

Sources said the association council has briefed the Civil Aviation Administration of China on this matter, saying it will take action to protect their rights, and it is appealing to the administration to forbid news flight rights and schedules for those bad-performers, and build up a trust evaluation system.

In addition, figures show the total amount of fees that should have been turned in was expected to be 703 million yuan for domestic 20 airports by the end of March 1, 2008, including airport service fees. However, the defaulted fees of Air China, China Southern Airlines, China Eastern Airlines and Hainan Airlines combined were beyond 300 million yuan, including Hainan Airlines' 107.6 million yuan.