Macau SAR to Vote on Civil Aviation Liberalization After Easter

The government of the Macau Special Administrative Region (SAR) is set to introduce a bill aimed at partially liberalizing air transport, with the Legislative Assembly expected to vote on the proposal after the Easter holidays. This move follows a previous unsuccessful attempt to pass legislation that would have ended Air Macau’s exclusive operational rights at Macau International Airport.

The Civil Aviation Activities Bill, now in its final stages of review, seeks to enable other passenger carriers to establish bases at Macau International Airport, thereby ending Air Macau’s long-standing monopoly since 1995. A government spokesperson indicated that the issuance of local air operator’s certificates (AOCs) and the decision to allow airlines to use Macau as a base will be determined based on market conditions and at the government’s discretion.

Currently, Air Macau is the sole scheduled passenger airline based in Macau, commanding a significant 42.66% market share in terms of weekly seat capacity. The airport serves as a hub for a diverse range of airlines, with Air Macau’s main competitors hailing from the Chinese mainland, Taiwan, Thailand, and Malaysia.

Under the new bill, any airline applying for a Macau-issued AOC will be required to present a five-year business plan, a requirement that will also apply to Air Macau, which will have 90 days from the bill’s enactment to comply. Additionally, the legislation introduces a national security provision, prohibiting any individual convicted of security violations from participating in the operations of airlines flying to Macau or holding any concessionaire roles.

This legislative effort marks a significant step toward liberalizing Macau’s aviation sector, aiming to foster competition and growth at Macau International Airport. The bill’s passage would signal a new era of opportunity for both existing and potential new entrants in the Macau aviation market.