Macau Outlook: Aviation stalemate reached, new ideas needed

Premium Analysis

Macau, one of Asia’s potential high growth aviation markets, is in need of a shake-up, having struggled since 2007 under a strategic, political and operational stalemate. North Asian aviation’s year of radical transformation in 2010 could provide a trigger for a renewal of Macau’s prospects, but the city’s aviation sector risks lagging the upheaval ahead in Japan, Korea and China. Beijing is effectively in the controlling seat, via Air China’s bailout of Air Macau last year (moving to majority ownership via various holding companies). Unfortunately for Macau, Air China has bigger items on its agenda (not least in the Pearl River Delta) and could take some time before it moves to leverage the city’s considerable aviation potential.

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