Interpretation of Sanya Implementation Measures for Encouraging the Expansion of Overseas Routes

To accelerate the construction of the Hainan Pilot Free Trade Port, help Sanya quickly achieve its goal of developing more routes to major global tourist source countries, and promote the construction of an international tourism consumption center, the city of Sanya in Hainan province encourages all civil aviation companies to expand overseas routes.

The new policy Sanya Implementation Measures for Encouraging the Expansion of Overseas Routes, based on the 2018 version of the Sanya Financial Subsidy Measures for Encouraging the Expansion of Overseas Routes, focuses on subsidizing airlines' self-operated direct flights to overseas routes using large aircrafts.

A total of 10 amendments were made, which includes:

1.  The municipal department in charge of industry changed from the original Sanya municipal coast defense and port bureau to the Sanya municipal transportation bureau.

2. Subsidies will be granted to newly opened regular overseas direct flights.

3. To encourage companies to open overseas direct flights operated by large aircrafts and tap the overseas market, Sanya launched a subsidy standard for newly opened overseas regular flights operated by aircrafts offering 340 seats or more.

4. Subsidies for newly opened regular overseas direct flight routes have added the requirements for passenger load factor and inbound passenger load factor.

5. Sanya has clarified the requirements for the passenger load factor of inbound passengers for regular overseas direct flights that have been cultivated for three years and need to continue to be supported.

6. A subsidy totaling 100,000 yuan ($14,100) will be granted for each flight newly opened by foreign airlines involving the Fifth Freedom Right and newly opened routes by domestic airlines involving the Sixth Freedom Right on the basis of the original subsidy.

7. Amendments and additions were made: 

Two million yuan will be awarded to the Sanya Air Traffic Control Station under the condition that the annual flight release normal rate averages above 78 percent and there are no major safety accidents. The airport will be awarded a reward of 3 million yuan or 5 million yuan if the annual passenger throughput of overseas routes increases by more than 10 percent or 20 percent from the previous year. The night shift subsidy will be given to the port joint inspection unit.

8. The bonus to airport companies and the Sanya Air Traffic Control Station are settled once a year and the night shift subsidy given to the port joint inspection unit is settled every six months.

9. The departments complete the review and appropriation within 45 working days after receiving the application materials.

10. This policy takes effect 30 days after it was released and lasts for three years.