CAAC recently issued the amended Rules for Market Access and Allocation of Air Traffic Rights for International Passenger Flights (hereinafter referred to as the Allocation Rules), which will be implemented starting from March 30, 2025. 

The vision and objectives of the Allocation Rules focus on the efforts in three aspects: building international aviation hubs and world-class airport clusters, first-class airlines and international route network. The previous allocation policies were fully revised. First, based on the operational features and supporting capabilities among other factors, the grading and classification of traffic rights resource, hubs, and airlines were further elaborated. Second, the conditions and requirements for market access were set in a rational and reasonable manner, with an aim to adjust and control the market access and save the domestic airlines from the vicious competition caused by homogenization. Third, the allocation mindset was adjusted, from mainly relying on quantity-based allocation to targeted allocation, with quantity-based allocation as a supplement, which will be steered by the function and positioning of the hubs. Meanwhile, the indicator scoring system was optimized in order to guide airlines to focus on the building of international hubs and main bases. Fourth, an economic benefits indicator was added as an important reference to initiate the traffic rights allocation, as a means to reduce the ineffective capacity investment, and to increase airlines’ competitiveness and operation quality. Fifth, the correlation between traffic rights allocation and safety oversight was enhanced to in particular ensure that the qualification to operate the traffic rights for long haul flights can match the supporting capabilities.