Bonded aviation fuel policy takes off in Ningbo

A ground staff member refuel an aircraft with bonded aviation fuel at Ningbo Lishe International Airport. [Photo by Wang Jiabin/Yongpai App]

A new bonded aviation fuel policy has taken effect in Ningbo, bringing tangible cost savings to international airlines and boosting the city's aviation competitiveness.

Flight MU2089 from Ningbo to Hong Kong was refueled with bonded aviation fuel at Ningbo Lishe International Airport on April 1, making the airport the first in Zhejiang province to implement the new policy, which is estimated to save airlines operating in Ningbo over 10 million yuan ($1.45 million) in fuel costs annually.

Aviation fuel is a core expense for airlines, typically accounting for 30 to 40 percent of total operating costs. Under the bonded fuel policy, international airlines are exempt from multiple taxes; domestic airlines operating international routes are exempt from tariffs and consumption taxes; and foreign carriers are exempt from tariffs, value-added tax, and consumption tax. As a result, the overall cost of bonded fuel is about 13 percent lower than conventional fuel, saving approximately 830 yuan per ton.

The policy is expected to significantly reduce operating costs for international and regional routes, improve the airport's business environment, and enhance Ningbo's appeal as an international aviation hub. More than 20 airlines, including China Eastern, SF Airlines, Cathay Pacific, and Atlas Air, are expected to benefit.

With an expanding network of 22 international and regional routes linking Asia, Europe, and North America, Ningbo is poised to further strengthen its role as a regional logistics and transportation hub, supporting higher-level opening-up and economic growth.