Gradually Liberalizing Market

Background of the concession and the sub-concession systems

In the 1990s, when Macao's aviation industry was just beginning to develop, the local market was quite small. To attract foreign investors and encourage them to establish their businesses in Macao, it became essential to implement a concession and sub-concession system. These measures aimed to ensure economic returns for investors while creating a mutually beneficial situation for both the investors and our air transport industry.

Gradually liberalizing the market 

Since the handover of Macao’s sovereignty to China, our economy has experienced tremendous growth. In reviewing the concession and sub-concession system in the air transport market, the SAR Government concluded that exclusive rights were no longer suitable for the industry's development. It recognized that allowing more service providers to enter the market would enhance overall service quality in this competitive environment. Consequently, in 2008, the SAR Government decided not to extend the exclusive rights in the contracts upon their expiration, leading to a liberalization of the air transport market. 

A similar decision was made regarding the airline concession. In October 2018, the SAR Government notified Air Macau that its exclusive rights would not be renewed after 2020. However, the outbreak of the COVID-19 pandemic in 2020 significantly impacted the global aviation market. To ensure that Air Macau could continue to provide consistent and stable services to both Macao residents and visitors during this challenging time, the Macao SAR Government extended Air Macau's concession contract for an additional three-year period.

In 2023, the aviation sector began to gradually resume normal operations following the COVID-19 pandemic. The Macao SAR Government initiated the legislative process for the “Civil Aviation Activity Law”. However, due to the technical nature of the provisions and the need for comprehensive reviews and assessments by the Assembly, the draft law remains under consideration at this time. Recognizing the importance of maintaining the current airline concession system to ensure that Air Macau can continue providing uninterrupted services to both Macao residents and visitors, the SAR Government has extended Air Macau's concession contract for an additional three years or until the new law comes into effect.