Heavy taxation harms Chinese airlines' growth: insider
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E-mail Xinhua, March 7, 2012
An insider of China's airline industry said on Wednesday that heavy taxes and fees imposed on Chinese airlines "seriously restrain" their capability of sustained growth.
Liu Shaoyong, chairman of China Eastern Airlines, the country's second-largest carrier, said the three largest state-owned carriers handed in 15 billion yuan (2.37 billion U.S. dollars) in fees and taxes to the government last year.
"That amount is close the total profits earned by the three carriers, and thus their capabilities for sustained growth are seriously restrained," said Liu.
China's three largest carriers are China Southern, China Eastern and Air China.
Liu suggested that the government repeal some taxes and fees, such as those imposed on importing aircraft and those aircraft's maintenance and value-added tax on aviation oil, to "give Chinese carriers a better stance in international competition."
