The legislation set to end Air Macau’s exclusive rights over Macau’s airport could potentially bring about significant changes in the region. For nearly thirty years, Air Macau has been the only airline with a presence at the Macau International Airport, which is located in the world’s largest gambling hub. The Civil Aviation Activities Bill aims to open up the airport to other airlines, allowing them to establish operations there.
A prominent lawyer in Macau recently spoke at a conference about the potential impact of this legislation. He compared the potential effects to the deregulation of the casino sector in Macau, which resulted in a significant economic boom. The lawyer emphasized that this change could lead to a surge in visitors to the region’s casinos.
Despite the general approval of the bill by lawmakers, there is still one major hurdle to overcome – determining the length of the license that airlines will receive. Some lawmakers are advocating for a 25-year term, while others prefer a 10-year cap to provide more flexibility for the government in responding to changes in the aviation industry. This decision is reminiscent of the recent reduction in casino license terms from 20 years to 10 years in January 2023.
Air Macau has enjoyed a 25-year exclusivity agreement for the transport of cargo, mail, and passengers since 1995. This exclusivity was extended for three years during the pandemic in 2020 and again in November of the following year. With the potential changes brought about by the Civil Aviation Activities Law, competition in the sector is expected to increase, with airlines already expressing interest in establishing a base in Macau. This could lead to more flight options from regions like North America, New Zealand, Australia, and Europe.
Currently, Air Macau’s exclusivity agreement prevents other airlines from setting up operational bases in Macau for their aircraft, maintenance, and employees. The government will ultimately decide how many licenses to issue, and applicants will need to submit a five-year business plan for consideration.
In conclusion, the proposed legislation to end Air Macau’s exclusivity at Macau’s airport could have far-reaching effects on the region’s aviation industry and economy. With increased competition and potential for new airline bases in Macau, the region may see a significant influx of visitors, benefiting both the aviation sector and the local economy.