Air Macau acknowledges shareholder capital injection

Gov't may extend Air Macau concession by 6 months

Delays in approving legislation to end the monopoly of Air Macau (NX, Macau International) at the territory's airport may see the airline's "concession" extended by an additional six months, Macao-based media outlets report.

As previously reported by ch-aviation, the Macao Special Administrative Region (SAR) government wants to end a longstanding arrangement that gives Air Macau exclusive access to the airport's slots, requires other airlines to negotiate access with it, and pay above market rates to fly in.

That arrangement dates back to 1995 when Air Macau signed a 25-year contract to provide passenger and cargo flights in and out of Macao International in exchange for a series of advantageous concessions. The deal was due to end in 2020 but was extended due to Covid-19 and now runs through November 9, 2023. However, this year, the SAR government has resumed its efforts to break up the carrier's monopoly and grow traffic into the former Portuguese colony.

In June, the legislation allowing the changes easily passed through Macao's Legislative Assembly, with 30 parliamentarians voting for...

Macau's Legislative Assembly passes aviation reform bill

Macau's Legislative Assembly has passed the territory's reforming Civil Aviation Bill that paves the way to liberalising access to Macau International Airport and reducing the dominance of Air Macau (NX, Macau International). Earlier this month, ch-aviation reported that the Legislative Council had drafted the bill and sent it to the Assembly for approval.

The Assembly waved the bill through on June 21, with 30 votes in favour and two abstaining. The bill will allow the Macau Special Administrative Region (SAR) Government to standardise licencing arrangements and permit new entrants to open bases at Macau International. Air Macau has enjoyed a 28-year reign as the only scheduled passenger carrier allowed to maintain a base at the airport. That right will cease at the end of this year. The new law effectively changes the territory's aviation regime from a franchise-style arrangement to a more conventional licencing arrangement. While the bill guarantees Air Macau will maintain its licence, the airline will lose its control over slot allocations at the airport to foreign competitors.

The new bill will...

Air Macau cuts registered capital after 2022 loss

Air Macau (NX, Macau International) has reduced its registered capital by MOP1.4 billion Macanese patacas (USD173.4 million) to abide by local laws that require an entity's total equity to be not less than half its registered capital.

The news accompanied the airline releasing its 2022 financial results via Macau's official government gazette on June 14. Air Macau reported a loss of MOP1.02 billion (USD126.3 million) for the 12 months to December 31, 2022. Accumulated debts stood at MOP2.8 billion (USD346.9 million) at the end of the year, while the net assets figure was MOP1 billion (USD123.9 million). The airline's chairman, Wang Mingyuan, attributes the less-than-stellar financial results "to the impact of the resurgence of the epidemic and the increase in oil prices."

"On December 13, 2022, the company decided, in an extraordinary general meeting convened for this purpose, to reduce its share capital, motivated exclusively by losses, which reduction included the elimination of the aforementioned special reserve of MOP200 million (USD24.8 million)," the gazette notice read. "The extraordinary general meeting approved the proposal to reduce...

Macao gov't forges ahead on bust-up of Air Macau monopoly