Air Macau takes encouraging steps to support the Macau market as "resort" tourism balloons

Air Macau's history is not illustrious. It has long sat on an effective monopoly as flag carrier, without exploiting its advantage, yet other airlines have been precluded, greatly upsetting the local tourism and hospitality industries.

But signs are emerging the carrier is beginning to take steps to have a more positive role in Asian aviation. For years Air Macau focused as a transit operation for passengers between mainland China and Taiwan, where direct flights were prohibited until mid-last decade. In doing so, it ignored its hometown market, a tiny enclave that quickly grew this century to be Asia's gambling capital. Inertia cost it market opportunities, especially in Southeast Asia, where agile low-cost carriers moved quickly.

Aircraft were wet-leased to part-owner Air China but now Air Macau's fleet is due to expand in a long-overdue bid to support Macau's growth. Target markets are mainland China and North Asia, but the carrier also hopes to make inroads in Southeast Asia. Air Macau is advantaged with Macau's gradual diversification from just gambling, as well as its concession agreement that runs until the turn of the next decade. But there are challenges, operationally and also being a subsidiary of Air China, which has larger priorities across the region.