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Volume 14,Issue 3 Autumn 2012

The debt of up to 1.87 billion Yuan to 31 domestic airports last year


“It is still not good in the payment to airports by airlines companies, especially for those large domestic airlines companies. There is still a low rate of contracts signed with them. It does not only increase the airports’ risks of financial management, but also brings a lot of risks and pressure on their daily operation and safety management”, stated the China Civil Airports Association. The report learned from the China Civil Airports Association that 31 domestic airports are facing the total of up 1.87 billion Yuan in overdue payments by airline companies by December 31st 2008. It was reported that most of the arrearage payable by airlines is composed of takeoff and landing fees, aircraft parking fees and service fees. As a result of the arrearage, the relationship between airlines companies and airports are getting worse. A portion of airports are experiencing a crisis of capital turnover due to the large arrearage by airlines companies. “Since no contract is signed, it is very difficult for airports to restrict airline companies by resorting to legal methods, if any arrearage happens. At the same time, airlines companies have gained the approval of the CAAC for their flight routes and sell flight tickets to passengers in advance, so that airports have to allow the aircraft of the airlines companies that owe the airports money in order to protect the interests of passengers. As you can see, airports stand on a passive position in this condition”, Wang Jian, Secretary of China Civil Airports Association, told the reporter.

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