Viva Macau chief slams "absurb" regulation

MACAU – Con Korfiatis, chief executive of Viva Macau, has stepped up his attack on the local power brokers who are blamed for restricting the airline’s growth.

In extracts from a speech carried by Destination Macau, Korfiatis said Macau SAR was currently burdened “by the ghosts of the past”.

”We have not seen any new markets served by Macau operators until the entrance of Viva Macau and even then, those additions are on a piece-meal basis and seem to be targeted more towards inhibiting Viva Macau’s growth, rather than growing the market alongside us.”

Korfiatis said the global aviation sector was growing, and most significantly in Asia, with record profits and record aircraft orders; “but Macau SAR lags behind”.

“Macau SAR has one of the fastest growing economies in the world and a global profile that is attracting international investment and attention, but the local aviation sector is badly under developed.”

Korfiatis said Macau SAR had more than 45 air services agreements with countries around the world.

“Today only a fraction of that is being utilised. Between the two Macau-based airlines only seven of these are presently being used.

“Prior to Viva Macau commencing services only four of these agreements were being used. More could and should be used,” said Korfiatis.

“A substantial set of these very valuable traffic rights is being reserved for two airlines that do not exist.

“Viva Macau was required under its sub-concession agreement to commence operations within 12 months, whilst these airlines more than 12 months on are nowhere near coming to existence.”

Korfiatis said the arrangement was “absurd”.

“Last year Viva Macau could see there was unsatisfied demand for Singapore to Macau flights. We applied for approval to fly to
Singapore and were rejected on the basis that the traffic rights were reserved for an airline that does not exist.

“Accordingly, almost one year later where no new Macau airline has materialised and Viva Macau was still prohibited from flying to Singapore, another Singapore-based airline took advantage of the opportunity to fill the void in capacity and entered the route.

“This route is now being served by two Singapore based airlines and the opportunity for a Macau based airline to enter the route is all but gone.

“These agreements are public property; they belong to the government and people of Macau SAR and should be used for the benefit of Macau SAR, not just the benefit of one airline who makes no use of them,” said Korfiatis.