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Companies

Air China sees 549m yuan tax-exemption saving

(Agencies)
Updated: 2010-05-06 09:48
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Air China Ltd, the nation's largest international carrier, said it may save 549 million yuan ($80 million) after the government announced a business-tax exemption for overseas flights and shipping services.

Related readings:
Air China sees 549m yuan tax-exemption saving Air China reports Q1 net profit up 121.33%
Air China sees 549m yuan tax-exemption saving China Cosco posts annual loss on overcapacity, shipping rates
Air China sees 549m yuan tax-exemption saving Air China wins Shenzhen Air control for southern hub
Air China sees 549m yuan tax-exemption saving Air China orders 20 Airbus A320s for $1.63b

The forecast was based on 2009 earnings, the company said in a Hong Kong stock exchange statement late Wednesday. Cosco Shipping Co, a unit of China's largest shipping group, predicted 42 million yuan in savings on a similar basis.

China introduced the tax exemption for airlines and shipping lines from Jan 1, covering both passenger and cargo services, according to a Ministry of Finance statement. The government has also bailed out state-controlled airlines after debts and competition caused losses.

Air China yesterday rose 2 percent in Hong Kong trading to HK$8.52 ($1.10) and 7.1 percent in Shanghai to 13.39 yuan. Cosco Shipping rose 0.8 percent to 9.14 yuan in Shanghai.

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