Aviation bill discussion almost concluded with new national security provision

The new civil aviation bill that the government has introduced to partially liberalize air transport in Macau is reaching its final stage of analysis and discussion at the Third Standing Committee of the Legislative Assembly (AL).

According to the president of the committee, the lawmaker Vong Hin Fai, a final version of the bill will likely be reviewed by the legal advisories of both the AL and the government in the upcoming weeks; the final version of the bill might be ready for voting on its final reading at the plenary after the Easter Holidays.

Although it is not yet clear when the bill will be voted and passed, the provisions state that it will enter into force the day after its publication in the government’s official gazette.

After yesterday’s extensive meeting, both Vong and the Secretary for Transport and Public Works, Raimundo do Rosário said that there are only small details to perfect and that the bill has already reached consensus among the committee members and the proposer.

During yesterday’s media briefing, Vong noted that one of the topics that took the committee significant time to discuss was related to the number of operating licenses that will be issued in the future.

Lawmakers wanted the government to clearly define the number of licenses that will be issued or at least name the maximum number. In response, the government explained that this would be a flexible matter related to the interest of the market. In the end, it was agreed that there would be discretionary power granted to the Chief Executive (CE) to make the necessary adjustments when needed.

Another of the topics about which the government has managed to convince the lawmakers is related to the provision ensuring that the licenses are untransferable even if there is a company acquisition or merger. All license transfers need to be authorized by the CE and can never automatically pass to a different company, Vong said.

New National Security provision added by lawmakersí request

The president of the Committee also said that the government accepted several of the suggestions from the lawmakers and introduced changes to the law’s drafting. Among them is a new article that aims to ensure that there are no problems related to National Security.

The article, introduced by request of lawmakers makes it impossible for any person who has been found guilty of any National Security Law violation to be able to take part in the future operations of the airport or its concessionaires or operators.

5 year business plan for airlines

The rules that establish the criteria for evaluation of applicants for an air transport license also state, among others, that the airliners need to submit a 5-year business plan as part of their application.

Also changed was a section of the initial version of the bill that lawmakers found confusing. Some lawmakers questioned whether the current operator (Air Macau) would be granted a license without passing through the same procedure as new applicants and, the fact that the law seemed to force the current solo operator to continue to be an operator in the future.

The new redaction clarifies that after the new law enters into force, the current operator has 90 days to acquire a license to continue to operate as a transitory rule. According to the new drafting, it is up to the company to require or not a new license to operate together with other potential interested parties.

Exiting the meeting, Raimundo do Rosário did not want to risk advancing the timing for the approval of the law, but he said that “surely it will be done before the end of this legislative year,” that is, before the AL summer holidays that start on August 15.