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Macau Airport traffic declines from 2007 peak as impact from cross-Strait liberalisation bites

Macau's aviation market has struggled since 2007 under a strategic, political and operational stalemate, which has seen the collapse of one of its two airlines and a sizeable contraction in air passenger and cargo numbers. However, interest in Macau is picking up again, as new LCCs emerge in North Asia, namely Korea and Japan. Foreign LCCs and Macau-China Mainland traffic is now driving traffic. The Jetstar Group has even identified Macau as a potential hub option. Overall, 2011 is expected to be a year of stabilisation for Macau, as it begins to claw back some of the lost ground of the past few years. However, growth will likely remain moderate for the foreseeable future.

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