03-04-2020 Friday 01:18

Liberalization of Macao's Air Transport Market

Background of the concession and the sub-concession systems

In the 90s of the 20th century when Macao’s aviation was at its inception, the local market was in such a small scale that it was necessary to introduce the concession and the sub-concession systems into our industry in order to attract foreign investors to launch their businesses in Macao through which their economic returns can be secured and hence achieving a win-win 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 been growing in a tremendous pace. In the process of reviewing the concession and the sub-concession systems of the air transport market, the SAR Government decided that the exclusive rights would no longer be appropriate for the development of the industry and that it would be beneficial to allow more service providers to contribute to the industry so that the overall service quality can be enhanced in this competitive environment. In 2008, the SAR Government decided not to extend the exclusive rights in the contracts upon their expiry. The air transport market has then become liberalized. 

The same decision was also made on the airline concession. In October 2018, the SAR Government informed Air Macau that their exclusive right will not be extended after 2020. Though without the exclusive right, Air Macau will still continue to serve the Macao community as a locally registered air operator.