MACAU – The future of Air Macau hangs in the balance despite reports that Air China is preparing to inject fresh funds into the Macau flag carrier.
The English-language newspaper the Macau Daily Times recently reported that shareholders of Air Macau have to decide whether they want to keep the business afloat or to have the company dissolved according to the Commercial Code.
Macau’s Commercial Code states that the measure to dissolve a company is necessary when it has made losses up to half of its capital.
The Centre for Asia Pacific Aviation said that one of Asia’s most uninspiring airlines (sitting on a potential bonanza of exclusive dormant air services rights), Air Macau has reportedly generated US$26 million in losses in the first five months of 2008.
Air Macau faces a massive challenge with the introduction of weekend cross-Strait charter services, leading to the erosion of its all-important transit market from Taiwan to the Mainland.
“Management appears to have been unable to see this development coming and prepare an alternative strategy, and failed to capitalise on the enormous gaming and leisure investment in Macau,†said CAPA.
“Its moves to frustrate efforts by local long-haul LCC, Viva Macau, to gain access to rights to grow the market have damaged the airline’s own revenue (via concession payments) and dimmed Macau’s inbound tourism potential.â€
