The package allocated 5 billion yuan ($735 million) for the industry, with 70 percent of the funds coming from the Ministry of Finance and the rest from local government coffers.
It will benefit all companies in the sector. It came into force retroactively from May 21 and will run until July 20, when the high summer travel season will begin.
However, if the current outbreak of Covid-19 is controlled before that date and the airlines can normalize their operations, the government will reduce subsidies and respect the basic rules of the market.
In addition, State aid is intended to cover the basic costs of these firms and thus guarantee the safety of each flight, restore growth expectations and maintain staff training.
Civil aviation is among the sectors most impacted by the Covid-19 pandemic in China, where the health strategy involves massive lockdowns, travel restrictions and strict mobility control.
Another blow was the accident in March of a China Eastern Airlines plane that killed 132 people and the incident reported this month on a Tibet Airlines plane, which went off the runway, caught fire and injured 36 people.