China's State Council has approved a proposal to extend the use of airport construction fees until 2010 to help fund the development of the civil aviation industry.

China started charging the fees in March 1992 to fund the nation's ambitious airport construction and expansion program.

The present charges are 50 yuan (US$6.40) per passenger on domestic routes and 90 yuan for international flights.

"Many of the nation's airports are overloaded and can't meet the fast-growing demand for air travel," China's General Administration of Civil Aviation said in a statement on its website.

"Given the lack of funds to fuel the vast construction needs, we won't stop charging airport construction fees, which is a major source of income," it said.

The fees collected are submitted to the central government, which allocates funds to local governments depending on the size of their airports, the CAAC said.

The fund can be used only for airport construction and repaying loans and interest on the projects, it said.

China had 142 airports by the end of 2005, up from 100 in 1992, benefiting from the airport construction fee levies, the CAAC said.

The fees were also used in upgrading airport facilities in major cities and tourist resorts, greatly contributing to infrastructure construction and securities improvement, it said.

The nation has collected 29.1 billion yuan in total fees through the end of 2005.

The Ministry of Taxation, which oversees the collection of airport construction levies, said it plans to improve the management of the system.

Many consumers and experts have questioned the validity of the charges, and called for appropriate supervision.