Liberalization law finally approved, but effects will first be seen on cargo

The new law on civil aviation activity was passed in its final reading yesterday at the Legislative Assembly.

The law, which facilitates the liberalization of the aviation sector and aims to end Air Macau’s monopoly, was passed with the unanimous support of all lawmakers in the plenary.

But in reality, the effects of the new law are not expected to be immediate, as explained by the Secretary for Transport and Public Works, Raymond Tam.

The official noted that, before the law is put into force, complementary administrative regulations must be completed, and preparations made to launch public tenders for license attribution.

Questioned by lawmaker José Pereira Coutinho, Tam admitted that the first effects of the law will be seen mainly in cargo freight rather than passenger flights.

He added that the increase in licenses to operate from Macau International Airport (MIA) needs to be done “gradually to ensure safety in the aviation sector.”

Nonetheless, Tam said the law introduces competitiveness, which could lead to improved service quality for MIA users.

He also affirmed that the government is working proactively to expand airport services and “will fully liberalize the cargo sector immediately,” noting that there are already interested parties.

Regarding passenger transport, Tam said: “It needs to be gradual. This does not mean we will keep our arms crossed, but we must promote stability. We also need to consider the small size of our economy.”

After continued questioning from Pereira Coutinho and Ron Lam, Tam said the preparatory work for tenders and regulations is underway and will be presented upon completion.

Civil Aviation Authority (AACM) president Pun Wa Kin added, “With Central Government authorization, we can negotiate directly with other countries. We will try to negotiate without limits. We will not impose limits on passenger numbers and will allow any airliner from any country to operate from Macau.”

He also noted that companies from Thailand have expressed preliminary interest, although he could not disclose names.

As for executive aviation, Pun clarified that the new law does not significantly affect the sector, which had largely ceased standard operations in recent years.
“Some of these companies withdrew for commercial reasons,” he said.

On drone regulation, Pun responded to concerns from Lam, stating that AACM has no intention of banning drones, as long as they operate within legal limits.
“Drones are allowed as long as they fulfill requirements. Macau has beautiful landscapes, and we do not plan to ban this activity,” he said.

Although Pereira Coutinho voted in favor of the law, he expressed frustration with the slow progress, suggesting authorities have delayed liberalizing the aviation sector as long as possible.

Lam also criticized the approved law, claiming it lacks transparency and does not guarantee fair access. “Routes will remain in the hands of Air Macau while others are excluded from the market,” he said, calling for equal treatment for all operators.

The bill was first presented on Sept. 6, 2023, and passed its first reading two weeks later. Nearly two years have passed with limited progress before its final approval.

Seven bills remain under discussion

The aviation law was one of nine bills still pending in the Legislative Assembly during the current legislative term, which ends Aug. 15.
Regulations stipulate that bills not finalized before the term ends must be dropped.

During yesterday’s session, lawmakers also approved amendments to the law governing travel agencies and tour guides, leaving seven bills still under discussion.
These include proposed laws on investment fund regulation, the statute of civil servants, public procurement, amendments to the Road Traffic Law, and the 2025 Budget Law, among others.