Air Macau

Infobox_Airline
airline=Air Macau
澳門航空
logo=Airmacau.gif
logo_size=180
IATA=NX
ICAO=AMU
callsign=AIR MACAO
parent=China National Aviation Corporation (Macau) Company Limited
founded=1994
key_people=Gu Tiefei, Chairman
David Fei, CEO|
headquarters=
hubs=Macau International Airport
focus_cities=
frequent_flyer=CIP Club
lounge=CIP Lounge
alliance=
fleet_size=18 (+6 orders)
destinations=15
website=http://www.airmacau.com.mo

Air Macau Company Limited (zh-t|t=澳門航空) is an airline based in Macau. It is the flag carrier of Macau, operating services to 12 destinations in mainland China, as well as regional international services. Its main base is Macau International AirportFlight International 27 March 2007] .

History

The airline was established on 13 September, 1994, and began commercial operations on 9 November, 1995, with a flight from Macau to Beijing and Shanghai (prior to 1995, there was no air service to Macau other than the helicopter service). The unique one-aircraft service between Beijing, Shanghai and Taipei began on 8 December, 1995. The first pure-freighter service was launched on 7 October, 2002, between Taipei and Shenzhen via Macau. Air Macau is owned by China National Aviation (CNAC) (51%), TAP Portugal (20%), STDM (14%), Eva Air (5%), the Government of Macau (5%) and Macau investors (5%) and employs 1,023 staff (at March 2007).

Recent reports have stated that Air Macau is on the cusp of bankruptcy. A recent article in the Macau Daily Times on July 9th states:

Air Macau crashes Wednesday, 09 July 2008 by Rodolfo Ascenso

"Air Macau is close to bankruptcy. With losses up to MOP 100 million just within May and June, following another MOP 100 million during the first quarter of this year, chairman of the Board of Directors Zhao Xiaohang, had no choice but to ask for a meeting of shareholders “in order to have a resolution”.In a letter dated July 1, 2008 Zhao stated he, “with deep regret” is forced to inform the shareholders “that since April 30, 2008 the net worth of the company had fallen below half of the value of the company’s capital”, and had triggered the Macau Commercial Code Article 206. Article 206 of the Commercial Code states that when a company administration apprehend to have losses up to half of its capital, the body must propose that “the company be dissolved or that the capital be reduced, unless shareholders, within 60 days from the resolution that arises from such a proposal, pay amounts in money that replenish the assets to a measure equal to the value of the company capital”.Air Macau’s authorised capital is supposed to be MOP 400 million. However, a search in the Trade Register shows that the decision to upgrade from 200 million to 400 million was never registered. Nevertheless a decision in that direction was made and approved by shareholders and the capital realised.This question is important if the shareholders’ decision is carried out via the third option.With losses of MOP 220 million accumulated over the past years, as well as MOP 105 million during the first quarter of 2008, and more than MOP 100 million during the past two month, it is still not clear how much shareholder have to input.Nevertheless, it is already clear that the decision will be made by the main shareholder of Air Macau, Air China Limited.Owning 51 percent of the capital, Air China Limited has the final word as they hold the responsibility for the present situation.In fact, the actual board of directors, with David Fei as CEO, was named and supported by Air China Limited for the last year despite the accumulated losses.Macau Daily Times understands that other shareholders are not keen to inject more money into a company that has a record of losses in a region where business is flourishing.Thus, the future of Air Macau is in the hands of Air China Limited and it is still unclear if they wish to inject more money or just allow Air Macau to go into bankruptcy.Air Macau is owned by Air China Limited (51 percent), SEAP – an investment fund of Portuguese airline TAP – (20 percent), Stanley Ho’s STDM (14 percent), Evergreen Airways Service (Macau) (5 percent), Macau SAR Government (5 percent) and several others (5 percent).So far the shareholders’ meeting (EGM) requested by the chairman of the Board of Directors had not been appointed.An ordinary meeting of directors is scheduled for July 31."

Subsequent international reports have equally reported the current financial crisis as well as severe concerns over safety and operations and not just the impending doom of Air Macau. These reports have called for a dramatic change to Macau SAR's current and antiquated aviation regulatory situation. This has been led by Jose Pereira Coutinho who submitted a written interpellation to the Macau SAR Government. This was also reported in the Macau Daily Times:

"Worrying situation: Air Macau's losses, government's lack of action

01 July 2008

Flagship airline, Air Macau, has recorded losses of up to 100 million patacas in the first quarter of this year, almost the same amount as the losses recorded during the whole of last year. This plus the fact that the government seems too “little concerned” about the situation is worrying lawmaker Jose Pereira Coutinho. In a written interpellation sent to the government yesterday, Coutinho questions the government's actions, or lack of them, for allowing a company to continue flying when services are constantly deteriorating with flight attendants barely speaking enough Cantonese or English, and most shockingly when the company has been recording continuous losses in the past four years. “While other local companies have recorder great profits, Air Macau has been accumulating losses, without anyone from the government having the courage to assess the causes of such losses,” Coutinho said. During the whole of last year, Air Macau recorded a loss of 109 million patacas, and when comparing its results for the past four years with that of other international airlines, Air Macau has blamed its losses on the hike in fuel price. “That doesn't stick,” Coutinho said, “we can't forget that the losses recorded in the last three years were mainly to do with the way in which the company was run.” For the past ten years Air Macau has cancelled flights to destinations such as Kuala Lumpur, Siem Reap, Singapore and Pusan, “but what is more worrying is that other low cost airlines have started flying to these destinations and have been successful,” Coutinho added. Last year alone, Air Macau cancelled some 3,000 flights, which is 20 per cent of its total flights held for the twelve months. “It's one of the world's worst recorded number of cancelled flights,” Coutinho added in his interpellation. The local lawmaker, who is mainly known for defending the “little people” also said that now locals rely “more and more” on foreign airlines to travel. “Considering that Macau has been an active member of the World Trade Organisation (WTO) for the past 12 years, it has the obligation to liberalise the market and all its monopolist economies,” he said. “Is the government ever going to review its monopolist market related to the Macau International Airport? When is the government planning on ending these concessions that lack transparency?”And why hasn't the government carried out an audit report into the way Air Macau is managed and run? These are questions to which Coutinho is now waiting for a reply on."

Destinations

Fleet

The Air Macau passenger fleet consists of the following aircraft (at March 2007) :

Cargo

Air Macau Cargo operates the following freighter aircraft to points in China and Taiwan.

Retired Fleet

2 Boeing 727-100F

Taiwan Strait

More than 70% of Air Macau's revenue comes from transporting passengers across the Taiwan Strait to Macau. Every week, Air Macau has 72 round-trip flights scheduled between Macau and Taipei and 28 round-trip flights scheduled between Macau and Kaohsiung.

Since Air Macau began its operation in 1995, no other airline has yet to offer a one-plane service for passengers traveling between Taiwan and Beijing, Shanghai, Xiamen, and other cities in the Chinese mainland. Although they must complete a brief transfer procedure in the Macau International Airport and wait for about 30 minutes with their carry-on luggage in the departure lobby, passengers can board the same plane once again and continue to their destination. The Air Macau staff are also stationed to assist Taiwanese passengers in obtaining their PRC Entry Endorsement.

ee also

* Transportation in Macau

External links

* [http://www.airmacau.com.mo Air Macau official website]
* [http://www.airmacaumagazine.com Air Macau Magazine inflight magazine]
* [http://www.cnacmacau.com/index.html China National Aviation Corporation (Macau) Company Limited official website]

References