The Government of Macao has extended Air Macau's concession agreement by three years ahead of the expiration of an existing contract later this year.

Under a 25-year concession granted to it in 1995, Air Macau has been the sole carrier to use Macau International as a base of operations. With the period of exclusivity set to expire at year-end, the government had considered doing away with the monopoly in favour of a more liberalised, competitive market, a move that would have put Air Macau under increased strain from Asian low-cost carriers.

However, events relating to the COVID-19 pandemic have now changed the Macanese authority's minds, at least until 2023. In a statement issued on Thursday, May 7, Macao's civil aviation authority (Autoridade de Aviação Civil - AACM) said that in the interests of maintaining stable flight operations amid the COVID-19 pandemic as well as to allow Air Macau time to prepare for the islands' liberalised air transport market, its concession had now been extended by three more years.

"The SAR Government is now working on the administrative procedures for the extension of the contract. More details will be published after the signing is concluded," it said.