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Last updated at: (Beijing Time) Thursday, November 22, 2001

CAAC: US 9.11 Attack Brings 2Bn Yuan Loss to China's Aviation

Source from Civil Aviation Administration of China (CAAC) said that China's aviation industry suffered over 2 billion yuan loss from the American September 11 attacks, the 9.11 attack has brought severe and direct influence on China's aviation industry.


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Source from Civil Aviation Administration of China (CAAC) said that China's aviation industry suffered over 2 billion yuan loss from the American September 11 attacks, the 9.11 attack has brought severe and direct influence on China's aviation industry.

  • US 9.11 Attack Brought Severe Influence on China's Aviation Industry
    • In his article entitled "Impact of US 9.11 Incident on China's Aviation Sector and Countermeasure Suggestion", Chen Xiaoning, responsible person of CAAC research department, said that the 9.11 attack has brought severe and direct influence on China's aviation industry.

    He wrote in the article that China's three airlines, namely: Air China, Southern Airliner, Eastern Airline suffered 33.4 million yuan losses due to suspension of passenger air service, while cancellation of flights from September 11 to 16 incurred cargo air service loss of over 40.08 million yuan to the three aviation companies.

  • Exchange Rate Change Also Caused China's Airlines to Suffer Loss
    • Exchange rate change also caused the three airlines to suffer 220 million yuan worth of losses. The three airlines are heavily in debt of Japanese yen. After the 9.11 incident, the appreciation of Japanese yen brought losses to the tree airlines.

  • Airplane Insurance Cost Increased
    • Chen also wrote that other expenditures, including the increased passenger insurance cost, would top 830 million yuan. All airlines are predicted to spend 187 million yuan of extra expense for plane insurance. In the meantime, General Electric (GE) also demands Chinese airlines who rent GE's 51 planes to increase the insurance premium by US$100 million.

    In addition, if airlines install security system on the cockpit, counted on the basis of US$50,000 per airplane, Chinese airlines will have to spend a total of US$25 million.



    By PD Online Staff Li Yan
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