CAAC Refines Flight Segment Review Metrics to Guide Airlines in Rational Capacity Deployment

Stock News
Oct 08

On October 8, the Civil Aviation Administration of China (CAAC) released the "Optimization Measures for Domestic Route Flight Review." According to the measures, in terms of flight segment market access, regulation will be implemented based on indicators such as the number of carriers, passenger load factor, and passenger volume, to guide carriers in rationally entering segment markets and promote orderly resource allocation. In terms of flight segment flight volume management, the review indicators will be further refined, with support measures for backbone network and basic network routes, guiding airlines to reasonably arrange capacity deployment. In terms of operating permit management, requirements will be clarified regarding continuous compliance with permit conditions, calculation of flight execution rates, incentive measures for voluntary flight return and voluntary cancellation, and operational efficiency supervision, to improve route operating permit management and exit mechanisms. The full text is as follows:

Notice from the Civil Aviation Administration of China on Issuing the "Optimization Measures for Domestic Route Flight Review"

To all regional administrations of civil aviation, all transport airlines, and all airport companies:

In order to thoroughly implement the relevant requirements of the State Council on promoting high-quality development of the civil aviation industry, and to carry out the work deployment of the "Guiding Opinions on Promoting the Construction of International Aviation Hubs," further improve the allocation and use efficiency of domestic route flight resources, and make every effort to build a high-quality and efficient air transport service system, the CAAC has formulated the "Optimization Measures for Domestic Route Flight Review." They are hereby issued, and please conscientiously comply and implement them.

Civil Aviation Administration of China
September 8, 2026

Optimization Measures for Domestic Route Flight Review

In order to earnestly implement the policy requirements for promoting high-quality development of the civil aviation industry, focus on building the functional system of aviation hubs and the construction goals of the domestic air transport backbone network and basic network, deeply rectify "involution-style" competition, and further improve the scientific and refined level of domestic route flight resource allocation, these measures are formulated in accordance with the "Civil Aviation Law of the People's Republic of China" and the "Provisions of the Civil Aviation Administration of China on Domestic Route Operating Permits" (CCAR289TR-R1, hereinafter referred to as the "Operating Permit Provisions").

I. Flight Segment Market Access

Based on the needs of air transport market supervision and macro-control, comprehensively utilize indicators such as the number of carriers, passenger load factor, and passenger volume to optimize domestic passenger market access management.

(1) Classified Management of Carrier Numbers

Multi-carrier segment markets are divided into backbone network and basic network markets, with the basic network further divided into two categories: segments not involving airports with passenger throughput below 2 million, and segments involving airports with passenger throughput below 2 million. The average number of carriers in each type of market shall serve as the review target value. If the number of carriers on a segment reaches the target value, new carriers shall be suspended; if it does not reach the target value, airlines may enter in an orderly manner. When an airline applies for a route operating permit involving an already-operated segment, it shall not be regarded as a new carrier on that segment and shall be handled in accordance with Article (7) of these Measures. Within 4 flight seasons from the date of implementation of these Measures (until the 2028 summer-autumn season), main hub operators applying to open segments originating from their aviation hub, and main base airlines applying to open segments from their main base to non-international aviation hubs, shall not be subject to carrier number restrictions.

(2) Requirements for the Number of New Carriers

During each centralized review, segments that comply with the "China Civil Aviation Domestic Route Flight Review Rules" (CAAC Regulation [2024] No. 26, hereinafter referred to as the "Review Rules") and the relevant provisions of these Measures may admit 1 new carrier, and the new carrier's added flight volume shall not exceed 14 flights per week. When more than 1 airline meets the conditions, the following order shall be used to determine: priority shall be given to supporting carriers operating stopover routes between international aviation hub airports to convert stopover routes into direct routes; carriers applying to convert to direct routes shall simultaneously return the original stopover route operating permits. Support shall then be given in order to main hub operators opening segments originating from their aviation hub, and main base airlines opening segments from their main base to non-international aviation hubs. Based on the weighted calculation of the "Five Rates" score and the regular flight plan execution rate score as stipulated in the "Review Rules," each with a 50% weight, priority shall be given to supporting airlines with higher weighted scores. If the review result cannot be determined based on the aforementioned indicators, it shall be determined in order of application time.

(3) Market Cultivation Period Protection Measures

For single-carrier segments involving airports with passenger throughput below 2 million, market cultivation period protection measures shall be implemented. Airport passenger throughput shall be based on the data referenced at the time of application; if the airport passenger throughput exceeds 2 million during the cultivation period, it shall not affect the already confirmed market cultivation period protection qualification. Starting from the 2026/27 winter-spring season, new and existing carriers may apply for market cultivation period protection. After review by the CAAC and regional administrations of civil aviation, a public announcement shall be made in the relevant system. If there is no objection to the announcement, market cultivation period protection shall be confirmed. Within 2 years from the date of confirmation of the application, new carriers shall not be approved. Newly operational airports shall not be eligible for market cultivation period protection within 2 years from the date of operation. During the cultivation period, existing carriers shall maintain stable route operations and shall not suspend flights without reason. If due to company reasons the flight volume falls below 2 flights per week for 4 consecutive weeks, it shall be deemed as automatic forfeiture of protection qualification, and each route shall have 0.1 points deducted from the "Five Rates" score. Existing carriers may apply to exit protection, and after confirmation by the CAAC and regional administrations of civil aviation, an announcement shall be made in the relevant system. If protection is applied for again after exit, each route shall have 0.1 points deducted from the "Five Rates" score. After the cultivation period expires, before the segment's seasonal passenger load factor reaches 90% and the seasonal passenger volume reaches the industry average for single-carrier segment markets, and provided that the "Review Rules" and other provisions of these Measures are met, the new flight volume for each segment per season shall not exceed 14 flights per week, with priority given to supporting existing carriers in increasing flight volume. If an existing carrier applies to increase flight volume to 14 flights per week, no new carriers shall be admitted; if an existing carrier does not apply to increase flight volume or applies for an increase of less than 14 flights per week, 1 new carrier may be admitted within the difference. After a new carrier enters, the segment shall no longer be protected.

(4) Passenger Load Factor and Passenger Volume Indicators

Multi-carrier segment markets are divided into five categories: between international aviation hubs, between international aviation hubs and regional aviation hubs, between regional aviation hubs, between aviation hubs and non-aviation hubs, and between non-aviation hubs. The average passenger load factor or industry opinion for each category of segment shall serve as the passenger load factor review target value. At the same time, the segment market passenger volume indicator is introduced, classified according to the number of carriers on the segment, with the average passenger volume of similar segments as the review target value. Segments that reach the passenger load factor or passenger volume review target value shall, provided they comply with the "Review Rules" and relevant provisions of these Measures, allow airlines to enter in an orderly manner. Segments where neither passenger load factor nor passenger volume reaches the review target value shall have new carriers suspended. Within 4 flight seasons from the date of implementation of these Measures (until the 2028 summer-autumn season), when main hub operators apply to open segments originating from their aviation hub, or main base airlines apply to open segments from their main base to non-international aviation hubs, and the relevant segment's carrier number reaches the review target value, they shall not be subject to passenger load factor or passenger volume restrictions.

(5) Basic Network Development Support Policy

Airlines are encouraged to enter flight information into the "Domestic Connecting Flight Service Management Platform" and actually operate them, actively carry out domestic connecting flight business, and improve transit facilitation service levels. Airlines ranked in the top 3 respectively in terms of the proportion of actually operated connecting flights to the company's total actually operated domestic flights in the same flight season and the total actually operated connecting flights may, when admitting new carriers, apply for exemption from one of the passenger load factor or passenger volume review indicators for 2 segments per company per season. Exempted segments for the same airline shall not be counted repeatedly.

II. Flight Segment Flight Volume Management

(7) Passenger Load Factor Regulation

Passenger load factor review shall be implemented in accordance with the standards of Article (4). If the passenger load factor does not reach the review target value, approval for increasing flight volume shall be suspended; if it reaches the review target value, carriers may apply to increase flight volume, provided they comply with the "Review Rules" and other provisions of these Measures. During each centralized review, each carrier's applied increase in flight volume on each segment shall not exceed 14 flights per week, and the number of carriers approved to increase flight volume on each segment shall not exceed 3. When more than 3 carriers apply to increase flight volume on the same segment, priority shall be given to supporting airlines with higher weighted scores based on the "Five Rates" score and the airline's regular flight plan execution rate score on the routes involved in that segment, each weighted at 50%. If the review result cannot be determined based on the aforementioned indicators, it shall be determined in order of application time.

(8) Aviation Express Line Support Policy

For segments between international aviation hubs and between international aviation hubs and regional aviation hubs that have not reached the domestic aviation express line standard (168 flights per week), priority shall be given in order to supporting main hub operators and main base airlines in increasing flight frequency. When more than 3 carriers are to be prioritized, determination shall be made in accordance with the provisions of Article (7), Paragraph 2.

(9) Backbone Route Support Policy Between Regional Hubs

For segments between regional aviation hubs with flight volume not reaching 56 flights per week, priority shall be given to supporting main base airlines in orderly increasing flight volume. If none of the airports involved in the route has a main base airline, priority shall be given to supporting the top two airlines in terms of actual flight volume at each airport in the same flight season. When more than 3 carriers are to be prioritized, determination shall be made in accordance with the provisions of Article (7), Paragraph 2.

(10) Regional Market Development Support Policy

When a carrier applies to increase flight volume on segments at airports with average weekly total flight volume of less than 14 flights and passenger throughput below 2 million, it may be exempted from passenger load factor review.

(11) Domestic Connecting Flight Support Policy

Airlines ranked in the top 3 respectively in terms of actually operated domestic connecting flight volume and the proportion of domestic connecting flights to the company's total actually operated domestic flights may, when increasing flight volume, apply for exemption from passenger load factor review for 2 segments per season. Exempted segments for the same airline shall not be counted repeatedly.

(12) Support for Group Companies to Strengthen Route Network Coordination

Support shall be given to group companies in strengthening route network coordination. On segments where the carrier number reaches the standard of Article (1), if one carrier within the group exits the segment, another existing carrier within the group may be exempted from various review requirements when increasing flight volume on that segment, and the increased flight volume shall not exceed the flight volume returned by the group carrier when exiting the segment. If the carrier that exited the segment applies again for a route operating permit involving that segment, 1 point shall be deducted from its "Five Rates" score. Applications that have already applied this provision shall not be subject to the incentive measures stipulated in Article (18) of these Measures.

III. Flight Plan Arrangement

(13) Flight Plan Arrangement

Airlines may flexibly arrange flight frequency based on actual market conditions.

(14) Optimize Flight Plan Filing Process

Enhance information system support capabilities, optimize domestic route flight management procedures, further shorten the time limit for regular flight plan filing, and standardize the approval procedures for irregular flight plans.

IV. Operating Permit Exit

(15) Continuous Compliance with Permit Conditions

Route operating permits held by airlines shall remain consistent with the business scope stated in their "Public Air Transport Enterprise Operating License." If changes in the business scope stated in the "Public Air Transport Enterprise Operating License" cause relevant route operating permits to exceed their business scope, the airline shall voluntarily apply to cancel the corresponding route operating permits within 1 month from the date of the business scope change.

(16) Calculation of Flight Execution Rate

Route operating permits shall be applied for and issued separately by flight season. The 2026/27 winter-spring season transition shall be a policy transition period, during which all routes shall be carried over based on the maximum flight volume of the previous two flight seasons, and assigned separately to the winter-spring season and summer-autumn season. In subsequent season transitions, each airline's route flights shall be carried over based on the flight volume stated in the permit for the same flight season of the previous year. Increments applied for in the winter-spring season shall only be used for the winter-spring season, and increments applied for in the summer-autumn season shall only be used for the summer-autumn season. The CAAC shall monitor the execution of airline route operating permits. Permit execution rate shall be monitored at the route dimension, calculated monthly, with the formula: "Monthly (Actual Operated Flight Volume + Exempted Flight Volume) / Approved Permit Flight Volume for the Month x 100%." Permit execution rate shall be managed on a flight season cycle. Exemption matters shall be implemented in accordance with the relevant provisions of the "Review Rules," and the permit execution rate shall be exempted during the Spring Festival travel period.

(17) Voluntary Return of Route Operating Permits and Flight Volume

The CAAC and regional administrations of civil aviation shall accept applications for cancellation of route operating permits and return of flight volume on a monthly basis, except during season transitions and centralized route flight application periods. Airlines may return route operating permits or flight volume during the acceptance period. When applying to return a route operating permit, the airline shall indicate the proposed cancellation date in the application, and the proposed cancellation date shall not exceed 2 months from the date of submission of the return application. For routes whose operating permits have been returned, if the airline repeatedly applies during the most recent same-type flight season review, 0.3 points shall be deducted from its "Five Rates" score. When applying to return flight volume, execution of the corresponding flight volume shall cease from the date of approval; for routes whose flight volume has been returned, if the airline repeatedly applies during the most recent same-type flight season review, 0.1 points shall be deducted from its "Five Rates" score. The approval rate assessment for route operating permit cancellation shall be abolished.

(18) Incentive Measures for Voluntary Cancellation of Route Operating Permits

To encourage airlines to optimize capacity layout, on segments that comply with the carrier number review requirements of Article (1), if an airline voluntarily cancels its operating permit, it may be exempted from passenger load factor and passenger volume review when applying for new route operating permits within the same flight season. The specific standards are as follows: If the number of carriers on the segment reaches the target value and is less than 10: for each route cancelled, the airline may newly enter 2 segments on segments that comply with the carrier number review requirements of Article (1); if the number of carriers on the segment is 10 or more: for each route cancelled, the airline may newly enter 4 segments on segments that comply with the carrier number review requirements of Article (1). When applying for new carrier entry after cancelling a permit, the ranking rules stipulated in Article (2) shall apply.

(19) Regulatory Measures for Route Flight Operational Efficiency

Except in cases of force majeure, if an airline commits any of the following circumstances, the CAAC or regional administrations of civil aviation shall order rectification within a specified time limit; if it still does not meet permit conditions after the deadline, the relevant route operating permit shall be revoked. During the rectification period, the airline may apply to cancel the route operating permit. After newly obtaining a route operating permit, if no flight plan is arranged within 3 months from the planned start date; if due to its own reasons, the permit execution rate in any flight season is below 50%, except for exclusively operated routes; on segments where the carrier number reaches the carrier number review standard of Article (1), if the permit execution rate ranks last for two consecutive same-type flight seasons and both permit execution rates are below 85%.

(20) "Five Rates" Point Deduction Provisions

If an airline commits any of the circumstances listed in Article (19), it shall be included as a deduction item when calculating the "Five Rates" score, deducted according to the following standards: if it voluntarily applies to terminate the route operating permit during the rectification period, 0.1 points shall be deducted from the "Five Rates" score per route; if it does not voluntarily apply to terminate, and after rectification still does not meet permit conditions, resulting in revocation of the route operating permit, 0.2 points shall be deducted from the "Five Rates" score per route.

V. Supplementary Provisions

The term "main base" as used in these Measures refers to the main operating base airport stated in the public air transport enterprise operating license, and the main base airport specified in the "Notice on Matters Related to the Beijing New Airport Airline Base Construction Plan" (CAAC Development [2016] No. 50). In accordance with relevant Tibet aid policies, when Tibet Airlines applies for Chengdu in-and-out of Tibet routes, Chengdu to relevant Tibet-aid province and city routes, and Chengdu to airports in Tibetan-inhabited counties of Sichuan, Yunnan, Gansu, and Qinghai provinces, it shall be regarded as the main base airline of Chengdu Shuangliu Airport. When the same city has two or more airports, operating permits shall be issued following the "same market" principle. Filed flight plans shall indicate the specific airport. The term "main hub operator" as used in these Measures refers to airlines selected and determined by the CAAC based on the "Guiding Opinions on Promoting the Construction of International Aviation Hubs" (CAAC Development [2024] No. 28) and relevant supporting documents, comprehensively considering factors such as airline support capacity and operational efficiency, and dynamically adjusted according to relevant rules. The term "backbone network" as used in these Measures refers to routes between hub airports, and "basic network" refers to routes other than the backbone network. The term "carrier" as used in these Measures refers to airlines that actually operated direct routes on the corresponding segment in the same flight season of the previous year, as well as airlines that have obtained route operating permits for that segment in the previous flight season and the current flight season; those whose route operating permits have been cancelled are excluded. These Measures shall be implemented in conjunction with the "China Civil Aviation Domestic Route Flight Review Rules," and in case of inconsistency between the two, these Measures shall prevail. The CAAC shall be responsible for the interpretation of these Measures. These Measures shall be implemented from the 2026/27 winter-spring season transition.

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