Air China, the country's flagship international carrier, said it will save an estimated 549 million yuan (US$80 million) annually after the carriers were exempted from paying a business tax on international and regional routes.

It based its estimates on revenue from international and regional routes in 2009 and a consolidated tax rate of 3.21 percent, the carrier said in a statement to the Shanghai Stock Exchange yesterday.

The Ministry of Finance said on its Website on Wednesday that it will exempt companies or individuals that offer overseas transport service from a business tax retroactively from January 1, 2010.