Rates raised for airlines operating int'l flights

Domestic airlines will pay more from April 1 for using airports when they operate international flights and flights to Hong Kong and Macao.

Two listed airport companies, Guangzhou Baiyun International Airport Co Ltd and Shanghai International Airport Co Ltd, said they have received a notice from the Civil Aviation Administration of China and the National Development and Reform Commission on adopting new rates for international flights, including those to Hong Kong and Macao.

The notice said the new rates will be in line with those for foreign airlines that use domestic airports. Domestic airlines currently only pay 60 percent of the charges levied on their foreign counterparts when operating international flights.

The notice added that luggage security check fees and service charges for Chinese travelers to overseas destinations will also be raised.

Analysts said the increases will boost revenue for domestic airports operating a large proportion of international flights, such as Shanghai International Airport, Beijing Capital International Airport Co Ltd, and Guangzhou Baiyun International Airport.

A report from UBS Securities estimated that the new rates will increase revenue for Shanghai International Airport by 16 percent and by 12 percent at Guangzhou Baiyun International Airport.

But airlines operating international flights will be hit by rising costs. Air China Ltd, with half its flights running on international routes, will face an annual increase of between 800 million yuan ($127 million) and 1 billion yuan.