The government has recently announced the extension of Air Macau's airport concession. This decision comes after careful consideration and evaluation of the airline's performance and contributions to the industry. The extension of the concession will allow Air Macau to continue operating at the airport and providing quality services to its customers. This move is expected to have a positive impact on the airline's growth and development, as well as the overall aviation industry in the region. The government remains committed to supporting the growth of the aviation sector and ensuring that passengers have access to safe, efficient, and reliable air travel services.
Background
Air Macau, the flag carrier airline of Macau, will maintain its dominant position at Macau International Airport for another three years. This comes after the government failed to pass legislation that would have ended the airline's privileged position at the airport.
Since 1995, Air Macau has enjoyed exclusive access to slots at Macau International under the "airline concession system." This deal, valid for 25 years, allowed the airline to charge above-market rates and restrict other carriers' access to the airport. However, in return, Air Macau agreed to provide services into the territory.
Planned Changes & Extension Granted
Legislators had been developing plans to end this arrangement, which was due to expire in 2020. However, due to the Covid-19 pandemic, the Macau SAR government granted Air Macau a three-year extension. This year, there have been concerted efforts to develop and pass legislation to end the beneficial arrangement. However, the final reading for the bill failed to take place in time to meet the December 31 deadline.
Justification for Extension
"It is necessary to maintain the current airline concession regime so that Air Macau can continue to provide uninterrupted services to Macau residents and visitors," said a statement from the Macau Civil Aviation Authority. "The extension of Air Macau Limited's franchise contract will not prevent foreign airlines from operating flights to Macau."
Air Macau's Operations
Air Macau operates a fleet of 22 narrowbody Airbus aircraft that fly to 31 destinations in nine countries, including Thailand, Vietnam, China, Indonesia, Taiwan, Japan, and South Korea. According to ch-aviation PRO airports data, 27 airlines fly into Macau International, including 24 scheduled passenger carriers. However, Air Macau dominates in terms of capacity and frequency.
Concession Extension Details
The airline provides 41.24% of the 81,661 seats on offer each week on flights to and from the airport. Of the 451 weekly flights at the airport, Air Macau operates 42.79% of them. The latest concession extension will see Air Macau continue this dominance through December 31, 2026.
Balancing Interests & Future Considerations
The situation highlights the challenges faced by governments in balancing the interests of domestic airlines with those of foreign carriers. While Air Macau's privileged position has allowed it to dominate at Macau International, it has also restricted competition and potentially led to higher prices for consumers. As such, it will be interesting to see whether legislators are able to develop a more equitable arrangement in the future that benefits all parties involved.
