Macao and Lao initialed new Air Services Agreement to liberalize the air transport market between the two places

To liberalize the air transport provisions which have been laid down many years ago between Macao and Lao, the Civil Aviation Authority of Macao SAR (AACM) and the Department of Civil Aviation of Lao People’s Democratic Republic (DCA Lao) met in Macao on 23 November 2010 to renew the bilateral Air Services Agreement (ASA) between the two places. Both parties initialed a new ASA and signed a new Memorandum of Understanding (MOU). The new ASA and MOU have lifted the old capacity restrictions and introduced fifth freedom traffic rights and code share, paving a more favourable business environment for the operation of scheduled air services between Macao and Lao. 

The discussions were held in a friendly and cordial atmosphere. Indeed, the old ASA and MOU between Macao and Lao were negotiated and established by the aeronautical authorities of the two places in 1997. In accordance with the old provisions, the designated airlines were only allowed to operate 7 flights per week between Macao and the points in Lao; fifth freedom traffic rights were not granted. In view of the emerging powers of the Asian economy, the aviation in Asia will see unprecedented growth at a rate above the world average. The two aeronautical parties recognized the need to review and renew the old Agreement and have therefore agreed to hold the air talks. 

The two delegations were headed by the President of AACM, Mr. Chan Weng Hong and the Director-General of DCA Lao, Mr. Yakua Lopangkao. During the meeting, they gave presentations about the economic, tourism and aviation development of Macao and Lao.

The discussions of the new ASA were based on the old Agreement. Both sides exchanged opinions with the aim of liberalizing the provisions. The new ASA was concluded with the main themes as follows: 

• Both sides agreed that passenger and cargo combination or all-cargo flights will be operated with no restrictions on capacity and aircraft type; 

• The designated airlines of both sides can operate the routes between Macao and Lao with fifth freedom traffic rights; 

• The designated airlines of both sides can cooperate with each other by code-sharing on the routes between Macao and Lao. 

The delegations were composed of the government officials of AACM and DCA Lao. The Macao delegation also comprised representatives from CAM-Macau International Airport Co. Ltd. and Air Macau Co. Ltd. 

“No airlines have operated the route between Macao and Lao after the establishment of the old ASA. However, the rapid growth of the air transport market in Asia has led to a continuous increase in the average income of the Asians. The enriching tourism resources of both Macao and Lao have also created business potentials for the air transport market between the two places. The realization of the air services between Macao and Lao will help us to further exploit the overall ASEAN market. It is therefore timely to establish the Agreement so that when an airline is interested to operate the route, they can file in the flight application at any time because the legal framework has already been laid down.”, said Mr. Chan Weng Hong.  

Macao’s economy has been greatly boosted by the tourism and the gaming industries, creating conditions for the favourable development of aviation. In accordance with the demand for air traffic and the requests made by other countries, AACM takes an active part in coordinating with the foreign countries for concluding or renewing the ASA or MOU.

The Civil Aviation Authority of Macao SAR and the Department of Civil Aviation of Lao People’s Democratic Republic met in Macao on 23 November 2010 to renew the bilateral Air Services Agreement between the two places.

The President of Civil Aviation Authority of Macao SAR, Mr. Chan Weng Hong and the Director-General of Lao People’s Democratic Republic, Mr. Yakua Lopangkao, represented the two delegations to initial the new Air Services Agreement between the two places.