Legislation that will end Air Macau’s exclusivity over Macau’s airport could lead to a large influx in visitors to casinos. [Image: Shutterstock.com]

A potentially huge change

Air Macau has been the sole airline with a base in the airport of the world’s biggest gambling hub for nearly three decades. Now though, the Civil Aviation Activities Bill aims to eliminate this exclusivity and allow other airlines to set up operations at the Macau International Airport.

knock-on impact of the legislation could be similar to the deregulation of the casino sector

A lawyer at a leading law firm in Macau spoke to the France Macau Chamber of Commerce about this potential change. He believes the knock-on impact could be similar to the deregulation of the casino sector in the Special Administrative Region of China, which led to an explosion in economic growth.

One big stumbling block

Eduardo Buisson Loureiro told the attendees at the breakfast talk that lawmakers have already approved the bill “in general terms” and the main remaining obstacle is the license term that airlines would receive.

want a cap of ten years believing this would allow the government more flexibility

Some lawmakers initially suggested a 25-year term, while others want a cap of ten years believing this would allow the government more flexibility when adapting to changes in the aviation sector. Casino licenses in the sector previously had a 20-year term before reducing to ten years in January 2023.

Air Macau has benefited from a 25-year exclusivity over the air transport of cargo, mail, and passengers, secured in 1995. This preceded a three-year extension in 2020 during the pandemic and another in November last year.

Plenty of interest

If the Civil Aviation Activities Law comes into place, it will heighten competition in the sector, with some airlines already expressing interest in establishing a base in Macau. More flight options would inevitably appear from regions like North America, New Zealand, Australia, and Europe.

Air Macau’s current exclusivity agreement means that while other airlines can fly in and out of the region, they can’t establish an operational base for their aircraft, maintenance, and employees.

The government will decide how many licenses it will hand out and applicants will need to provide a five-year business plan to be up for consideration.