Civil Aviation Activity Law (Law 4/2025)
The much-anticipated new Civil Aviation Activity Law (hereinafter, the “Aviation Law”) has come into force on 01 February 2026.
The Aviation Law comes after the announcement back in 2019 of the Government´s intention to liberalize the aviation market, an initiative which was put on hold by the COVID pandemic.
With the resumption of border traffic to normal levels, and in tandem with the efforts for diversification of Macao’s economy, the Aviation Law aims to liberalize the civil aviation sector and bring an end to Air Macao’s monopoly.
The Aviation Law represents a complete overhaul of the existing legal framework, in an important attempt to modernize the rules governing the local aviation sector and attract much needed competition in this sector.
Below are the main takeaways of the Aviation Law:
1. Scope of application
The Aviation Law applies to:
- Aircraft registered in Macao or operated by a local carriers, regardless of the location of such aircraft;
- Aircraft that are not registered in Macao but use the airspace under the jurisdiction of Macao;
- Unmanned Aerial Vehicles operating within the airspace under the jurisdiction of Macao;
- Aerodromes located in Macao;
Military, customs, police, search and rescue, firefighting operations, border control, and similar activities, along with the personnel and organizations involved therein, including military aerodromes, are not included in the scope of the Aviation Law.
2. Introduction of a licensing model
The Aviation Law moves away from the current concession model by introducing a licensing model.
Under the Aviation Law, licenses will be granted through public tender, for a maximum period of 20 years.
However, a few exceptions are worthy of note:
- During the course of a public tender procedure, the Chief Executive may deem that the non-issuance of a license serves the public interest and, therefore, decide not to issue such license; and
- For reasons of public interest and with due justification, the Chief Executive may dispense with the public tender procedure and grant the license through direct negotiation.
Issuance of licenses is subject to certain conditions, such as minimum service requirements and other terms and conditions deemed necessary.
The Aviation Law sets out that licenses are not transferrable. Changes to shareholdings of the licensees will be forbidden during the first three years of operation, and subject to Government approval thereafter (except in cases where the transfer occurs due to death or judicial decision).
Finally, cargo aviation will be fully liberalized, and no license being required. In addition, executive aviation and commercial passenger transportation by helicopter are also not subject to obtaining a license.
3. Maintenance of Air Macau’s role as a flagship carrier
The Aviation Law allowed Air Macau to be granted a license in a streamlined manner and, taking advantage of this favorable regime, Air Macau has secured a license, valid until January 31, 2046.
We believe that this measure is intended to keep the market stable in face of the significant changes to be ushered in, while also maintaining the status of Air Macau as a flagship carrier.
4. Requirements and licensing criteria
Those seeking a license will need to meet the criteria set out in the Aviation Law, as well as any additional criteria which will be set out upon the publication of the tender documents.
As for the criteria already laid down in the Aviation Law, we would highlight the following:
- incorporation in Macao as a private company limited by shares (in Portuguese “Sociedade Anónima”), with a minimum share capital of MOP 600 million for companies engaged in commercial air passenger transport;
- have the activity of air transport as principal scope of business, being also allowed to include other commercial activities of operation and maintenance of aircraft;
- submit a deposit of MOP 15 million to secure compliance with legal obligations;
- have principal place of business in Macao;
- demonstrate sufficient technical and financial capacity;
- demonstrate suitability of both the applicant company as well as of its directors and shareholders holding 5% or more of its share capital.
Regarding the requirement of demonstration of financial capacity, the Aviation Law determines that the applicants must provide evidence that:
- they are capable of covering their fixed and variable costs for a period of 3 months following the beginning of operations (without accounting for any income derived from its operations); and
- they can ensure, at any moment, the performance of their obligations, as defined in their business plan, for a period of 24 months counted from the beginning of operations.
5. Overhaul of AACM’s powers
The Aviation Law designates the Civil Aviation Authority of Macao (AACM) as the competent authority responsible for supervising, regulating, and inspecting civil aviation activities. AACM has regulatory, oversight, and sanctioning powers and possesses public authority for effective execution of its functions, being empowered to issue directives, exemptions, and impose fees.
Although this cannot be construed as a change to the previous status quo, the Aviation Law establishes in a clearer manner AACM’s duties and powers, while also outlining a range of applicable sanctions and penalties for violations of the Aviation Law.
In a nutshell, the Aviation Law aims to establish a more robust regulatory framework, which offers transparency to all operators in the market.
6. Constant review of Local Regulations
To keep up with international safety standards, the Aviation Law introduces a requirement to republish Macao’s Air Navigation Regulations (hereinafter, the “RNAM”) every two years.
Additionally, it stipulates that, besides Portuguese and Chinese (the official languages of Macao), the RNAM must also be published in English since it also applies to foreign aircraft operators.
A new RNAM has been approved, effective 12 May 2026.
7. Unmanned Aerial Vehicles (hereinafter, “UAV”)
The Aviation Law introduces a short article on UAVs basically stating that any activities with UAVs must be previously authorized by AACM, other than those which present a low risk to public safety.
Although not offering many details, and remitting to ancillary legislation to be passed, this new chapter opens the door to the possibility of allowing the operation of unmanned aerial taxis in Macao.
8. Increased protection of consumer’s and prohibition of unfair competition
Considering the potential risks associated with illegal or irregular activities in civil aviation, the Aviation Law includes provisions to prevent agreements or concerted practices that may impede competition or abuse a dominant position in the market by licensed entities.
These are important regulations considering that, at least for the foreseeable future, it is expected that Air Macau will maintain its dominant position in the local market and, therefore, it is important that any new players are confident that their rights to operate in a competitive environment will be safeguarded.
Overall, these are all welcomed changes. Challenges remain, such as those (i) related to airport capacity and runway (although an airport expansion is in the works), and (ii) the capacity for any newcomers to attract skilled manpower to ensure its operations.
It also remains to be seen whether an upcoming tender will impose any requirements to establish flight connections with Portuguese-speaking Countries, in line with the political ambitions for Macao to become a platform for promoting cooperation between China and Portuguese-speaking Countries.
All in all, if Macao intends to cement its role in the Greater Bay Area and fulfil its stated objective of becoming a World Centre of Tourism and Leisure, a strong aviation market is essential, allowing increased tourism from international markets and a significant increase in available flight destinations.
Only the future will tell which players will be interested in grabbing a slice of the pie. Exciting times ahead for Macao and the civil aviation industry.
CFB Lawyers is a Macao based full-service law firm, with significant experience in aviation matters.
Should you have any enquiries or if you would like to seek further information regarding the liberalization of the Macao aviation market, feel free to contact our partner Hugo Maia Bandeira.