{"id":1175,"date":"2016-12-13T19:55:33","date_gmt":"2016-12-14T00:55:33","guid":{"rendered":"https:\/\/ops.group\/blog\/?p=1175"},"modified":"2022-09-27T10:54:05","modified_gmt":"2022-09-27T14:54:05","slug":"the-hidden-costs-of-operating-to-china","status":"publish","type":"post","link":"https:\/\/ops.group\/blog\/the-hidden-costs-of-operating-to-china\/","title":{"rendered":"The Hidden Costs of Operating to China"},"content":{"rendered":"<p>China has always been challenging to operate to. Handling rates are prohibitively expensive, half the country\u2019s airways are closed to foreign operators, and slots and parking at the major airports can often be impossible to obtain.<\/p>\n<p>But often the most frustrating thing about operating to China is just trying to work out what all the different charges are for. If you receive a big bill post-flight from a company called Tong Da Air Service, unfortunately it\u2019s not a scam! These guys are the government-appointed agency in China who are responsible for collecting all the NAV fees for flights by foreign operators.<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1186 size-large\" src=\"https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/tongda-1024x695.jpg\" alt=\"\" width=\"1024\" height=\"695\" srcset=\"https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/tongda-1024x695.jpg 1024w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/tongda-300x204.jpg 300w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/tongda-768x522.jpg 768w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/tongda-676x459.jpg 676w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/tongda.jpg 1664w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>It\u2019s important to know in advance what you will get charged here, as it\u2019s not totally clear \u00a0without doing a bit of digging \u2013 and your handling agent will likely not include all these complicated fees when they provide you with handling quotes!<\/p>\n<h4>For NAV fees in China, you will always get charged for four separate things:<\/h4>\n<ul>\n<li>En-Route Charge.<\/li>\n<li>Terminal Navigation Charge.<\/li>\n<li>Compensation Charge (the fee paid to the government for the permit)<\/li>\n<li>Service Charge (Tongda Air\u2019s charge for obtaining the permit)<\/li>\n<\/ul>\n<p>Importantly\u2026<\/p>\n<p>En-Route Charge = <strong>this is\u00a0charged for each individual flight<\/strong><\/p>\n<p>Terminal Navigation \/ Service Charge \/ Compensation Charge = <strong>these are charged per permit,<\/strong> and are always set costs.<\/p>\n<p>So let&#8217;s say you fly RKSS-ZBAA-RKSS: you will need to pay En-Route Charges for each sector, and one set of Terminal Navigation \/ Service \/ Compensation charges.<\/p>\n<p>Similarly, if your routing involves multiple domestic flights within China, (eg. RKSS-ZBAA-ZBTJ-ZSPD-RKSS) you only need one permit to cover all those stops,\u00a0 which means you will only pay one set of Terminal Navigation \/ Service \/ Compensation charges. So far so good&#8230;<\/p>\n<p>But let&#8217;s say you fly something like RKSS-ZBAA-VHHH-ZGSD: on this routing you will effectively be <strong>departing<\/strong> China when you go to VHHH, so you will need <strong>two<\/strong> permits &#8211; one for each stop in China (ZBAA and ZGSD). And because of this, you would need to pay <strong>two<\/strong> sets of Terminal Navigation \/ Service \/ Compensation charges!<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone wp-image-1181 size-large\" src=\"https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/China-map-1-1024x722.jpg\" alt=\"china-map\" width=\"1024\" height=\"722\" srcset=\"https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/China-map-1-1024x722.jpg 1024w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/China-map-1-300x212.jpg 300w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/China-map-1-768x542.jpg 768w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/China-map-1-676x477.jpg 676w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/China-map-1.jpg 1384w\" sizes=\"auto, (max-width: 1024px) 100vw, 1024px\" \/><\/p>\n<p>So here\u2019s how you work out the 4 charges:<\/p>\n<h4>1. En-Route Charge<\/h4>\n<p>There\u2019s a very lengthy and complicated method of working this out, but the easiest thing to do is just use your flight-planning tool to tell you the answer. Most tools have this function \u2013 just make sure you click the button that says something like \u2018overflight costs\u2019 and find the section on the output of the flight plan that looks something like this:<\/p>\n<p><img loading=\"lazy\" decoding=\"async\" class=\"alignnone size-large wp-image-1176\" src=\"https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/Screen-Shot-2016-11-08-at-13.34.35-1024x243.png\" alt=\"screen-shot-2016-11-08-at-13-34-35\" width=\"676\" height=\"160\" srcset=\"https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/Screen-Shot-2016-11-08-at-13.34.35-1024x243.png 1024w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/Screen-Shot-2016-11-08-at-13.34.35-300x71.png 300w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/Screen-Shot-2016-11-08-at-13.34.35-768x182.png 768w, https:\/\/ops.group\/blog\/wp-content\/uploads\/2016\/11\/Screen-Shot-2016-11-08-at-13.34.35-676x160.png 676w\" sizes=\"auto, (max-width: 676px) 100vw, 676px\" \/><\/p>\n<p><em>(Showing costs for a B737 operating from ZBAA\/Beijing to VHHH\/Hong Kong)<\/em><\/p>\n<h4>2. Terminal Navigation Charge<\/h4>\n<p>MTOW\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 Charges (RMB Yuan)<br \/>\nUp to 25\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 990<br \/>\n26-50\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1060<br \/>\n51-100\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 \u00a0 \u00a0 \u00a0 \u00a0 1060 + 21*(T-50)<br \/>\n101-200\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 1920 + 23*(T-100)<br \/>\nabove 201\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0\u00a0 3820 + 27*(T-200)<\/p>\n<p>T = the actual MTOW rounded up to the nearest tonne<\/p>\n<p>So for example:<br \/>\nan aircraft with a MTOW of 60T = 1060 + 21*(60-50) = 1270RMB<br \/>\nan aircraft with a MTOW of 110T = 1920 + 23*(110-100) = 2150RMB<br \/>\nan aircraft with a MTOW of 210T = 3820 + 27*(210-200) = 4090RMB<\/p>\n<h4>3. Compensation Charge<\/h4>\n<p>This will always be $3000.<\/p>\n<h4>4. Service Charge:<\/h4>\n<p>This will be either $1200 for landing permit, or $500 for overflight permit.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>China has always been challenging to operate to. Handling rates are prohibitively expensive, half the&#8230;<\/p>\n","protected":false},"author":32,"featured_media":1185,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[109],"class_list":{"0":"post-1175","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-briefings","8":"tag-china"},"_links":{"self":[{"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/posts\/1175","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/users\/32"}],"replies":[{"embeddable":true,"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/comments?post=1175"}],"version-history":[{"count":11,"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/posts\/1175\/revisions"}],"predecessor-version":[{"id":19948,"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/posts\/1175\/revisions\/19948"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/media\/1185"}],"wp:attachment":[{"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/media?parent=1175"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/categories?post=1175"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/ops.group\/blog\/wp-json\/wp\/v2\/tags?post=1175"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}