With the upcoming two sessions of the National People’s Congress in 2022, Wang Yu, member of the CPPCC National Committee, vice chairman of Shanghai Federation of industry and Commerce and chairman of Spring Airlines Co.Ltd(601021) ( Spring Airlines Co.Ltd(601021) , SH), will bring four proposals and suggestions on precision epidemic prevention, green airport, civil aviation support and low fuel consumption incentive. Among them, topics such as reducing airline financing costs and alleviating medium – and long-term capital pressure during the epidemic have attracted the attention of the industry.
In the civil aviation industry, nucleic acid detection has almost become Wang Yu’s routine. He observed that travelers will encounter problems such as coexistence and non interoperability of multiple codes, non sharing of detection information, and non-uniform prevention and control standards across the country. In this regard, he believes that we can timely summarize the successful experience of local epidemic prevention and control, collect the best to form a national unified plan, establish a national unified information platform, further improve the digital level of epidemic prevention and control, and realize the “senseless access” at all prevention and control checkpoints.
Expand loan term and ease capital pressure
Since the outbreak, airlines have accumulated huge losses. The situation in 2022 is still not optimistic. According to the prediction of the International Aviation Association, it will not return to the level in 2019 until 2024. In addition to the epidemic, the civil aviation industry is also impacted by the superposition of many adverse factors such as oil price and exchange rate fluctuations, geopolitics and high-speed rail competition. The aviation department is seeking more financial support.
As early as 2020, the Civil Aviation Administration and the China Banking and Insurance Regulatory Commission provided 110 billion yuan of one-year relief and low interest loans, which significantly alleviated the financial pressure of the civil aviation industry due to centralized ticket refund and flight reduction during the epidemic, and ensured the smooth operation of the civil aviation industry.
“However, due to the extended epidemic span, the airline company still has huge losses, the operating income is still at a low ebb, and the cash flow pressure is still huge.” Wang Yu suggested to continue to provide financial support such as rescue low interest loans for airlines, ensure the investment of airlines’ survival and flight safety, and extend the term of the existing rescue loans from one year to three to five years, so as to alleviate the medium and long-term capital pressure of airlines.
According to the data provided by Spring Airlines Co.Ltd(601021) side, as of September 30, 2021, the average asset liability ratio of Chinese listed airlines has reached 70%, and the average current ratio is only 0.49 Wang Yu said that once the one-year rescue loan expires, airlines need to maintain it by “borrowing the new to repay the old”. The one-year working capital loan accounts for more than 50% of the total working capital loan of airlines, which is more likely to cause the rupture of the capital chain.
At the same time, the purpose of the relief loans in 2020 is limited to the daily operating expenses of Airlines (such as aviation fuel, takeoff and landing expenses, personnel salaries, etc.). The purpose of the latest batch of relief loans at the end of 2021 is expanded to half the amount, which can be used to repay the stock loans, but the procurement expenses such as aircraft or engine account for a large proportion of the capital expenditure of airlines. Taking Airbus a320neo as an example, the delivery price of an aircraft is about US $50 million to US $60 million. The aviation company is still facing working capital pressure in the process of resuming reproduction.
Wang Yu suggested that the scope of the use subjects of the rescue loan should be expanded, for example, the loan can be repaid in full, and can be used to purchase aircraft or engines, so as to meet the urgent needs of the aviation department.
Form green airport evaluation standards and systems
During the two sessions last year, Wang Yu put forward a proposal on “building a resource-saving terminal”, proposing to build a resource-saving, practical and convenient terminal with low-carbon operation in accordance with the construction requirements of type IV airport.
With regard to the latest progress, Wang Yu said that at the end of 2021, the China Civil Airports Association issued the “green performance evaluation standard for type IV airports”, which is a standard for Shanghai International Airport Co.Ltd(600009) group and other relevant units to summarize the experience and lessons of Shanghai International Airport Co.Ltd(600009) in the actual operation process, from the perspective of five green performance, such as “resource conservation, health and comfort, low-carbon emission reduction, environment-friendly and efficient operation”, Put forward the qualitative and quantitative index system of green airport development.
Based on the concept of green development, the standard implements the national carbon peak and carbon neutralization, as well as the relevant requirements of the action plan for the construction of civil aviation type IV airports (20202035) and the guidelines for the construction of type IV airports issued by the Civil Aviation Administration of China, and is consistent with the objectives and tasks of airport green development in the special plan for civil aviation green development in the 14th five year plan.
Focusing on the above requirements, Wang Yu further suggested this year to form an industry evaluation standard and system for the green development of Chinese airports on the basis of the green performance evaluation standard of type IV airports issued by China Civil Airport Association.
Specifically, the airport construction needs to aim at resource conservation, adjusting measures to local conditions, reasonable functions and reducing costs. The principle of “giving priority to space energy conservation” should be strengthened in the design of airport terminal and other supporting building facilities, and a sustainable development construction scheme of “scientific and reasonable, technically applicable, economical and practical, green and environmental protection” should be formulated.
In terms of low-carbon emission reduction, Wang Yu said that the emission reduction performance of the airport can be evaluated in detail through indicators such as the utilization rate of renewable energy of the airport, the carbon emission in the construction operation stage, the utilization rate of APU alternative equipment and the allocation proportion of new energy vehicles, so as to promote all aspects of the airport to do a good job in low-carbon emission reduction.
“In addition, indicators can be set, such as the operation efficiency of aircraft (the proportion of near parking spaces in the terminal, the annual airport release rate and ground taxiing time, a-cdm and other system applications), the operation efficiency of ground transportation (the support capacity of rail and bus), and the efficiency of passenger transportation (the longest distance ratio of passenger departure streamline, and the number of self-service check-in equipment) To standardize and evaluate the operation efficiency of the airport and the performance of passenger experience, promote the development of airport standardization, and further accelerate the construction of “four types of airport” Wang Yu added.
