Starting February 1 2026, Macau will implement a modernised legal framework for commercial air transport aimed at promoting sustainable development of the aviation industry. This shift follows the enactment of the new Civil Aviation Act (Law 4/2025) on June 19 2025.
From monopoly to market liberalisation
Macau’s aviation market began in the mid-1990s, a period marked by limited technical resources and economic development. This was shortly after the Macau International Airport (MIA) became operational.
Initially, the region’s civil aviation system was governed by Decree-Law 36/95/M and further refined by Administrative Regulation 10/2004. These regulations created a framework that offered exclusive an airline concession (and a paired sub-concession). This system formed the backbone of Macau’s aviation industry for decades.
For 25 years, Air Macau held the exclusive concession for providing commercial air transport services to and from Macau. The concession was repeatedly extended, with the latest extension valid until November 2026.
Macau’s rapid economic growth post 1999, particularly after the liberalisation of the gaming industry, highlighted the need for legal and regulatory updates across various sectors, including aviation. In 2008, the government announced plans to liberalise the aviation market by granting licences to additional carriers based in Macau. This marked the beginning of efforts to open the sector to greater competition and better serve the region’s residents and visitors.
The new Civil Aviation Act represents a crucial shift towards a more competitive and innovative aviation market, aligning with international best practices.
Key features of the new Civil Aviation Act
The new legal framework introduces a transparent, tender-based licensing regime, ensuring fair competition and equal opportunities for all qualified applicants. While the system prioritises open access, direct licence awards may be considered in exceptional cases, provided there is rigorous justification.
Licences will be issued for a period of 25 years, with a limited number granted based on market analysis and strategic considerations. To ensure the stability of the aviation sector, applicants must be incorporated in Macau, with their primary business operations located within the region. Furthermore, the licences are non-transferable, and any transfer of shares in licensed companies will be subject to strict regulations.
Despite the changes, Air Macau will be granted a new licence under the new regulatory framework, so as to ensure continuity while preparing the market for a more dynamic and competitive environment.
Macau International Airport expansion under way
MIA plays a critical role in the region’s tourism, trade, and economic development. However, the airport’s single passenger terminal and limited aircraft movement capacity have struggled to keep pace with growing passenger demand.
To address this, the Macau government has initiated plans to expand MIA’s capacity. In 2010, a master plan was developed by the Civil Aviation Authority of Macau and Macau International Airport Company Limited to enhance efficiency and capacity. This includes a land reclamation project to create space for new facilities. Construction on the expansion began officially in November 2024.
Economic outlook
The expansion of MIA, combined with the new regulatory framework, is expected to boost competition among airlines, foster innovation, and improve operational efficiency. These developments will significantly contribute to Macau’s economic growth and strengthen its position as a regional aviation hub.
