(Yicai Global) May 16 -- China's civil aviation authority intends to offer rare cash support to domestic flight operators, which could help China Southern Airlines and Spring Airlines the most, according to insiders.

Airlines that have more domestic flights than others and those with a high aircraft utilization rate would benefit the most if the aid is given based on flight hours, industry insiders said to Yicai Global. Those companies would include Guangzhou-based China Southern Airlines and Shanghai-headquartered low-cost carrier Spring Airlines, they added.

The Civil Aviation Administration of China summoned domestic airlines on a video call today to talk about offering them cash to help them get through their issues caused by the Covid-19 pandemic, Yicai Global learned from a notice about the conference call.

Multiple airlines confirmed the news about the conference to Yicai Global. However, the method and scale of transfers were not clear yet. Some said that each aviation company, regardless of its scale or ownership structure, would receive the funds equally based on its flight hours.

The method would be uniquely direct and inclusive and the effect is expected to be stimulating, several market insiders said to Yicai Global. Before this, the civil aviation sector's bailout policies amid the pandemic have been focusing on tax and fee cuts.

Since 2020, the CAAC has implemented several preferential policies targeting airports, traffic control, and jet fuel. But still, the Covid-19 outbreaks this year have significantly slowed the sector's recovery.

The latest policy push could help the aviation industry to rebound from the bottom and resume more routes, Lin Zhijie, an insider in the sector, said to Yicai Global. The aid is needed as the recovery rate of passenger traffic is just 23 percent of the normal this month.

China's aviation industry has lost over CNY210 billion (USD30.9 billion) in total from the start of the Covid-19 pandemic to February 2022, according to the CAAC. And losses have just continued piling up in the past few months, it added.

Editors: Xu Wei, Emmi Laine, Xiao Yi