Air Macau’s concession contract extended for three years

The concession contract of Macau’s flagship airline, Air Macau, has been officially extended for a period of three years. The extension was announced yesterday on the government’s Official Gazette.
According to a statement from the Civil Aviation Authority (AACM), the extension of the concession contract, which was due to expire on November 8 this year, comes in response to the effects of “the outbreak of the Novel Coronavirus Pneumonia worldwide.”
The AACM noted that, facing such a situation, “the aviation sector is adversely affected and will take a considerable period of time to recover,” adding that during such a recovery period, “it is necessary to maintain the stability of […] industry operations.”
Taking into account the aforementioned reasons, the government has decided to extend the concession until November 2023 in a bid to “ensure that Air Macau will continue to provide continual and stable services to the Macau residents as well as to the visitors,” the AACM concluded.
According to data released by Air Macau’s major stakeholder, Air China, during the first six months of 2020, the local airliner has accumulated net losses amounting to over 550 million patacas. The figure contrasts with last year’s results for the same period, in which the Air Macau reported profits totaling 84 million patacas.
The airliner also reported a drop in passenger numbers by 79.3% in the first half of this year. RM