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Xinjiang Uyghur airport exec calls for local subsidies to boost air cargo

LOCAL government in Xinjiang should offer subsidies to air carriers to encourage the launch of air cargo services, said deputy general manager of Xinjiang Airport Group Li Zheng.

Speaking at a meeting of logistics stakeholders in the Xinjiang Uyghur Autonomous Region Mr Li Tianjin, Guangzhou, Shenzhen, Shijiazhuang, Hainan province and Gansu province have started to offer such subsidies to domestic and overseas carriers.

This helped launch cargo services from these places, which have greatly boosted air cargo business in these regions, he said, Xinhua reported.

Mr Li took Shijiazhuang as example. The city offers subsidy to carriers that launch new scheduled all-cargo services in their first year of operation.

For those that offer more than 40 flights a year, each of the flights that carry more than 50 tonnes can get CNY250,000 (US$40,300) subsidy. Each of those carrying less than 50 tonnes can get CNY200,000.

Carriers that offer 20 to 40 flights per year, each of the flights that carry more than 50 tonnes can get CNY200,000 subsidy. Each of those carrying less than 50 tonnes can get CNY150,000.

Those offering less than 20 flights a year, each of the flights that carry more than 50 tonnes can get CNY150,000 subsidy. Each of those carrying less than 50 tonnes can get CNY100,000.

Tianjin city government offers CNY100,000 to intercontinental cargo flights and CNY60,000 to others.

From 2010 to 2013, Xinjiang's Urumqi airport has achieved much progress in domestic air cargo business. The airport's domestic cargo throughput was growing at a fast rate of 17.5 per cent per year.

However, the airport's international cargo throughput has been falling year by year at a sharp rate of 25 per cent, mainly due to shrinking air cargo charter services. Last year, Urumqi airport handled 11,000 tonnes of charter flight cargo, which took up eight per cent of its throughput. In 2007, the airport handled 24,000 tonnes, taking up 30 per cent of the total.

Mr Li said the fall of charter flight cargo was partly the result of the world's weakening economy. Another reason was that the subsidies that other cities are offering have diverted its business.

Mr Li also suggested that the Urumqi customs offer 24-hour service to enhance clearance efficiency.

 

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