Air Macau Secures Three-Year Extension of Airport Concession Amid Legislative Delays

The government of the Special Administrative Region has extended Air Macau’s airport concession for an additional three years, allowing the airline to maintain its dominant position at Macau International. The extension comes after legislative efforts to terminate the airline’s exclusive privileges faced delays, with the final reading of the bill failing to take place in time to meet the December 31, 2023 deadline.

Air Macau has benefited from the “airline concession system” since 1995, providing the carrier exclusive access to slots at Macau International and other perks. Originally valid for 25 years, the arrangement allowed Air Macau to charge premium rates and limit other carriers’ access to the airport. Efforts to end this arrangement began several years ago but were hindered by the impact of Covid-19, leading to a three-year extension granted by the Macau SAR government.

Despite ongoing efforts to pass legislation to terminate the privileged position, the bill faced delays and failed to progress through the Legislative Council in time. The Macau Civil Aviation Authority emphasized the need to maintain the current concession regime, ensuring uninterrupted services to residents and visitors. Notably, the extension does not impede foreign airlines from operating flights to Macau.

Air Macau, with a fleet of 22 narrowbody Airbus aircraft, serves 31 destinations across nine countries, including Thailand, Vietnam, China, Indonesia, Taiwan, Japan, and South Korea. While Macau International hosts 27 airlines, Air Macau dominates in terms of capacity and frequency, providing over 40% of the weekly seats and flights. The latest extension will prolong Air Macau’s dominance until December 31, 2026.