One of Asia's largest low-cost carriers is now planning to set up a base of operations in Macau to take advantage of the newly passed policy that now allows other airlines to set up shop in the gambling capital. AirAsia recently announced that it is planning to build a new base of operations in the gambling Mecca to offer Chinese travelers different transportation services.
Macau recently passed a new policy earlier this year that effectively ends the 25-year monopoly of Air Macau. AirAsia is now considering bidding for a local airline concession, following the expiration of Air Macau's exclusive license concession. AirAsia will be the first major airline to take advantage of the new policy as it competes for the business of Chinese consumers in the region. According to AirAsia's founder and CEO Tony Fernandes, the company aims to set up a foothold in Macau as it will give them more access to mainland China.
The Kuala Lumpur-based low-cost carrier is banking on the continually increasing number of Chinese tourists and travelers in the area. Reports have revealed that Macau could be experiencing over 400 million trips annually by 2030; more than double the number of trips in 2017. Building its own facility in the city will allow the company to serve more customers through its in-house passenger check-in hubs as well as boarding and baggage handling. Additionally, the company could also offer ticket selling facilities for different modes of transportation throughout their destinations, which could include tickets for ferries, trains, and buses.
AirAsia, which was established back in 2004, is also placing a large bet on the potential of China's Greater Bay Area initiative. The various cities in the Pearl River Delta are being developed to become a major economic and business hub in the country, with various infrastructure projects already in the pipeline. If the airline pushes through with its plans, the new base of operations could become the staging point of its expansion in the region. The cities around the Greater Bay Area currently have a popular of more than 60 million people, with an estimated economic output of over US$1.5 trillion.
The airline currently flies to four destinations within the Greater Bay Area, namely in Hong Kong, Shenzhen, Guangzhou, and Macau. According to the company's CEO, they are now considering the possibility of applying for additional certificates to operate an airline specifically for Macau. The company is reportedly also looking to connect the gambling hub to its major destinations in Asia, such as the Philippines and Malaysia.
