Scheduled flights between Macao and Japan

With the joint efforts of the Macao SAR Government, Air Macau and the industry people in coordinating with the relevant Japanese government bodies, and the assistance which the Central People’s Government rendered to the process, the Ministry of Land, Infrastructure and Transport Government of Japan issued an administrative permit to Air Macau on 03 July 2007 allowing the latter to operate scheduled services between Macao and Osaka. The granting of the administrative permit signifies the launching of scheduled passenger services between Macao and Japan and further enhances the development of trade, commerce and tourism between the two places. Air Macau will operate the respective flights starting 26 July 2007. The Macao SAR Government anticipates the conclusion of an Air Services Agreement with Japan in the near future so as to establish a legal framework for the development of air transport between the two areas. The SAR Government also welcomes the operation of the Japanese route by Air Macau and hopes that the local airlines will diversify the market and expand the passenger network, helping to make Macao an important air hub in the Pearl River Delta Region. The Civil Aviation Authority of Macao SAR (AACM), while joining the delegation of the SAR government representatives, Air Macau and the industry people to Japan last July, took the opportunity to hold an informal meeting with the Civil Aviation Bureau of Japan. A Record of Discussions was signed by both parties in which they agreed to allow their designated airlines to operate 3 flights a week between Macao and Japan. The destination granted to the designated airline(s) of Macao is limited to Osaka. Despite this, the designated airline(s) of Macao can enter into code sharing arrangements on the connecting domestic segments between Osaka and other points in Japan with any Japanese airline. The granting of the above-mentioned administrative permit is based on the principles set forth in the Record of Discussions. Air Macao will operate 2 flights per week, every Thursday and Sunday, between Macao and Osaka commencing 26 July. The airline is presently in discussion with All Nippon Airways on code sharing between Osaka and other Japanese inland cities. In addition, the airline is also keen at increasing the flights to 3 frequencies per week soon. The initial contact that Macao made with Japan in expressing the wish to establish an air link between the two places can be traced back to 1993. In addition to the numerous contacts made with and invitations sent out to the Japanese side by AACM, the Authority was also supported by the Macao Government (before the handover) and the General Administration of Civil Aviation of China (CAAC) which helped to coordinate with the Japanese Government on this issue. After the establishment of the Macao SAR Government, the same wish was reiterated by the Chief Executive, the SAR government representatives and the industry people to the Japanese side during their visits there. During the course of coordination, the Ministry of Foreign Affairs of the Central People’s Government and CAAC provided continued assistance. Furthermore, to show that there was market demand, Air Macau has operated charter services to Japan from time to time with good results. For example, the airline operated 47 flights to cities including Tokyo, Osaka, Kita Kyushu, Fukui, Kogoshima, Miyazaki, Fukushima, Toyama and Okinawa in 2006. The success of opening up the scheduled services is a result of the long-term endeavours of the Central People’s Government, the Macao SAR Government, Air Macau and the industry people. The operation will also pave a good foundation for the conclusion of a bilateral Air Services Agreement in the future. Japan is a country with strong economy in Asia. Its population of outbound travels is not only enormous but with high consumption power. According to the data of the Statistical and Census Bureau of Macao SAR, the number of Japanese tourists visiting Macao rose from 122,184 in 2004 to 220,190 in 2006, an average of 30% increase every year. In 2006, the Japanese ranked number 4 in the East Asia market of Macao’s tourism. On the other hand, Japan possesses rich tourism resources and is a popular tourist destination for the Macao residents. Ever since the gaming industry in Macao has been liberalized, the local economy has been facing favourable growth, stimulating the residents to travel outbound. With the operation of the scheduled flights between Macao and Japan, the tourism market between the two places can further be enhanced. The aviation industry in Macao depended heavily on the Taiwan market in the past. With the success of the Macau International Airport in attracting low cost carriers and the efforts of the local carriers in expanding their network, the passenger market distribution has gradually changed. In 2000, the Taiwanese occupied 68% of the passenger market. The percentage decreased to 51% in 2006. The number of passenger destinations in Asia, excluding points in mainland China and Taiwan, increased from 5 in 2004 (Bangkok, Kuala Lumpur, Manila, Seoul and Singapore) to 9 in the present moment (additional: Clark, Jakarta, Male and Kota Kinabalu). Furthermore, AirAsia will operate a new route between Johor Bahru and Macao in the coming August. As of May 2007, the passenger market share was as follows: Taiwan 47.1%, mainland China 29.1%, other Asian markets 21.8% and markets out of Asia 2%. The opening up of the Japan market will further help Macao to come out from single market specialization to market diversification. The implementation of the individual traveling scheme by the mainland in Macao has led to an immense increase in the number of tourists visiting the city. To cope with the demand of the air transport market in the future, AACM reviews the Air Services Agreements from time to time and will initiate discussions with the other aeronautical authorities to create a more liberal environment. For example, AACM met with the aeronautical authorities of Thailand, Malaysia and Vietnam respectively in September 2004, April 2006 and August 2006 to renew the respective Memoranda of Understanding. The new Memoranda have established more liberal conditions for developing the air transport markets between Macao and these places. Apart from Japan, according to the need of our aviation market and the requests from the other countries, AACM also plans to renew the Memoranda of Understanding with Indonesia and the Philippines and conclude the Air services Agreements with Angola, Egypt, Italy, Mexico and Qatar in the near future. Up till the present, Macao has initialed 45 Air Services Agreements with other countries, of which 39 have been officially signed. The details are as follows: Country Number Asia and Pacific Australia, Brunei, Cambodia, Democratic People's Republic of Korea, India, Malaysia, Maldives, Mongolia, Myanmar, Nepal, New Zealand, Pakistan, Philippines, Republic of Korea, Singapore, Sri Lanka, Thailand, Vietnam, Indonesia*, Israel*, Lao* 21 Middle East United Arabs Emirates, Oman* 2 Europe Austria, Belgium, Czech Republic, Denmark, Finland, France, Germany, Iceland, Luxembourg, Netherlands, Norway, Poland, Portugal, Russia, Sweden, Switzerland, UK, Greece*, Slovak Republic* 19 Africa South Africa 1 Americas Brazil, USA 2 Total 45 Note: * pending for official signing