Civil Aviation Administration of China, Provisions for Domestic Investment in the Civil Aviation Industry

中国民用航空局国内投资民用航空业规定

April 17, 2018 | BY

Susan Mok

Civil aviation investment restrictions relaxed for private investment.

Clp Reference: 4600/17.12.18 Promulgated: 2017-12-18 Effective: 2018-01-19

Promulgated: December 18 2017

Effective: January 19 2018

Applicability: These Provisions shall apply to investment in the civil aviation industry by domestic state-owned and non-state-owned entities.

For the purpose of these Provisions, the term “civil aviation industry” includes the following sectors:

(1) public air transport;

(2) general aviation;

(3) civil airports, including civil transport airports and general aviation airports;

(4) air traffic control systems; and

(5) civil aviation activity-related projects, including aviation fuel sale, storage and filling, aircraft maintenance and repair, cargo warehousing, ground services, production and sale of airline food, parking lot operations, passenger and cargo sales agency, computerized booking system services, aviation settlement and other related projects (Article 3).

State-owned investment entities and private investment entities may invest in the Civil Aviation Business individually or jointly (Article 5).

Where a civil transport airport, aviation fuel sale, storage and filling enterprise or computerized booking system service enterprise and its affiliates invest in a public aviation transport enterprise other than a “cargo only” airline company, their investment percentage may not exceed 5% (Article 9).

Where a public air transport enterprise or its affiliate invests in a hub airport or public airport terminal thereof, its investment percentage may not exceed 25% and it may not have a relative controlling position (Article 10).

Where a hub airport or its affiliate invests in an aviation fuel sale, storage and filling enterprise and its facilities within its airport grounds, its investment percentage may not exceed 25% and it may not have a relative controlling position (Article 11).

Related legislation: PRC Civil Aviation Law, Oct 30 1995

Repealed legislation: Provisions for Domestic Investment in the Civil Aviation Industry (Trial Implementation), Jul 15 2005

clp reference:4600/17.12.18 promulgated:2017-12-18 effective:2018-01-19

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