artofzen
Topic Author
Posts: 113
Joined: Thu Apr 05, 2018 6:38 am

Macao - Why not an LCC?

Wed Jul 11, 2018 5:51 pm

Just wondering why Macao has the dowdy flag carrier like Air Macau, serving a few destinations instead of a fun looking LCC? I can imagine something like WOW air with same livery as their airline, named WOW!macao.
 
EvanWSFO
Posts: 487
Joined: Sun Mar 04, 2018 9:22 pm

Re: Macao - Why not an LCC?

Wed Jul 11, 2018 5:59 pm

There used to be Viva Macau, using 763's. Not sure it's needed given it's proximity to several large airports nearby.
 
Zaf
Posts: 51
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Re: Macao - Why not an LCC?

Wed Jul 11, 2018 6:01 pm

Why go LCC when you can charge a premium for gamblers and tourists from Taiwan and Mainland?
 
pbody
Posts: 34
Joined: Mon Apr 11, 2016 4:09 am

Re: Macao - Why not an LCC?

Wed Jul 11, 2018 6:01 pm

Macau has plenty of LCC service already.
AirAsia to DMK, CNX, UTP, HKT, JHB, KUL, MNL
Cebu Pacific to MNL, CRK
T'Way, Jeju and Jin to ICN
Scoot to SIN
Spring Airlines to HGH, HRB, PVG
Tiger to KHH, RMQ, TPE

Can't really think of any missing markets that need LCC service from MFM
 
devron
Posts: 186
Joined: Wed Apr 20, 2011 11:56 am

Re: Macao - Why not an LCC?

Wed Jul 11, 2018 6:02 pm

Noone is willing to take this bet
 
artofzen
Topic Author
Posts: 113
Joined: Thu Apr 05, 2018 6:38 am

Re: Macao - Why not an LCC?

Wed Jul 11, 2018 6:18 pm

pbody wrote:
Macau has plenty of LCC service already.
AirAsia to DMK, CNX, UTP, HKT, JHB, KUL, MNL
Cebu Pacific to MNL, CRK
T'Way, Jeju and Jin to ICN
Scoot to SIN
Spring Airlines to HGH, HRB, PVG
Tiger to KHH, RMQ, TPE

Can't really think of any missing markets that need LCC service from MFM

So Air Macau couldn't have been an LCC from the beginning?

Off topic but their livery is perfect for Air Koryo.
 
bzcat
Posts: 264
Joined: Thu May 29, 2008 11:34 pm

Re: Macao - Why not an LCC?

Wed Jul 11, 2018 6:19 pm

The short answer is it is not a LCC type destination for inbound travel from mainland.
 
SCQ83
Posts: 3946
Joined: Wed Oct 03, 2012 8:32 pm

Re: Macao - Why not an LCC?

Wed Jul 11, 2018 6:38 pm

MFM has also a small terminal with not much area to expansion (have you noticed how small Macau is in the first place?). It is more of a "city" style airport with quite a lot of buildings around.

So really a low-cost hub like KEF is not the best way to use the limited assets of the airport.
 
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chunhimlai
Posts: 139
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Re: Macao - Why not an LCC?

Wed Jul 11, 2018 6:50 pm

For many Chinese travellers they use ZUH to Macau instead
 
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hongkongflyer
Posts: 488
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Re: Macao - Why not an LCC?

Thu Jul 12, 2018 2:27 am

Air Macau has the exclusive right to operates flights out of Macau by a Macau based airline unless they approve you to do so.
So basically Macro can only has one home based airline.

Luckily the right will expire in 2020.
 
zakuivcustom
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Re: Macao - Why not an LCC?

Thu Jul 12, 2018 2:45 am

artofzen wrote:
Just wondering why Macao has the dowdy flag carrier like Air Macau, serving a few destinations instead of a fun looking LCC? I can imagine something like WOW air with same livery as their airline, named WOW!macao.


To start, the short live LCC out of Macau, Viva Macau, was actually name Wow!Macau at the beginning :white:

hongkongflyer wrote:
Air Macau has the exclusive right to operates flights out of Macau by a Macau based airline unless they approve you to do so.
So basically Macro can only has one home based airline.

Luckily the right will expire in 2020.


Add on a little bit, Viva Macau went out of business precisely bc the Macau govt literally end the "sub-concession" agreement (i.e. Basically saying Air Macau "allow" Viva Macau to operate) on days notice, resulting in Air Macau being the sole carrier based in MFM.

At the end, Macau itself is tiny, and the airport itself is not all that big, either. Hard to see another Viva Macau-like carrier also, with the external LCC competition, along with LCCs at HKG.
 
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CARST
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Re: Macao - Why not an LCC?

Thu Jul 12, 2018 6:38 am

zakuivcustom wrote:
At the end, Macau itself is tiny, and the airport itself is not all that big, either. Hard to see another Viva Macau-like carrier also, with the external LCC competition, along with LCCs at HKG.


artofzen wrote:
Just wondering why Macao has the dowdy flag carrier like Air Macau, serving a few destinations instead of a fun looking LCC? I can imagine something like WOW air with same livery as their airline, named WOW!macao.


That is part of the answer, but also that HKG is the main airport for Macao for longhaul flights with at minimum hourly ferries directly from the HKG terminal (airside!) over to Macao harbour's immigration facility, right in the city center. The ferry takes about 60-70 minutes and is very convenient. At least for longhaul flights its HKG. For short- and midhaul Macao Airport might be better, but others have pointed out how the politics hold back every airline wanting to start business there...
 
planemanofnz
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Joined: Fri Sep 30, 2005 4:46 pm

Re: Macao - Why not an LCC?

Thu Jul 12, 2018 12:47 pm

NX seems to be conservative - they don't serve major hubs like Singapore. Separately, I'm surprised that MFM still doesn't have links to various large Asian cities, like Ho Chi Minh City pr Jakarta (either on an LCC or full-service carrier), let alone domestically to the likes of Kunming. If space is an issue, why not just pursue land reclamation? Or, if the full-service model is an issue, why not just spin-off an LCC? MFM still has a lot of development in the pipeline, and China wants it to continue growing, as a symbol of the 'one country, two systems' policy working.

Cheers,

C.
 
LupineChemist
Posts: 563
Joined: Wed Oct 07, 2015 9:03 am

Re: Macao - Why not an LCC?

Thu Jul 12, 2018 12:52 pm

Unlikely to happen now since they will just be able to cross the bridge to HKG with a half hour drive.
 
zakuivcustom
Posts: 1118
Joined: Sat Jun 10, 2017 3:32 am

Re: Macao - Why not an LCC?

Thu Jul 12, 2018 5:10 pm

LupineChemist wrote:
Unlikely to happen now since they will just be able to cross the bridge to HKG with a half hour drive.


1. The bridge is not open yet.
2. You can't really just "drive" across the bridge AFAIK. They will limit the number of vehicles that can get the "dual license" permit IIRC. Shuttle buses are available across the bridge, though.
3. The border checkpoint extension into airside of HKIA won't be complete for awhile. In the meantime, one still have to enter HK to use HKG.

planemanofnz wrote:
NX seems to be conservative - they don't serve major hubs like Singapore. Separately, I'm surprised that MFM still doesn't have links to various large Asian cities, like Ho Chi Minh City pr Jakarta (either on an LCC or full-service carrier), let alone domestically to the likes of Kunming. If space is an issue, why not just pursue land reclamation? Or, if the full-service model is an issue, why not just spin-off an LCC? MFM still has a lot of development in the pipeline, and China wants it to continue growing, as a symbol of the 'one country, two systems' policy working.

Cheers,

C.


I don't think being a FSC is the problem for NX, as they're operating at a profit (albeit not a big profit). Ultimately, demand to/from Macau proper is fairly limited, and all those "leakage" into HKG doesn't help.

There are a few cities even in mainland that they can expand into, though (KMG being one, TAO being the other I can think of), although demand to/from "secondary" (or 3rd tier) China can be crapshoot even for MFM (or HKG).

At the end - wait until 2020, I can almost guarantee that some LCC will pop up after the exclusive right (finally) expired.

P.S. Long-term development plan for the airport will reclaim the land currently located between the two taxiways from the terminal area to the runway. Space and slots are not really an issue short-term, although depending on the growth (no clue whether MFM can sustain that 10% YoY growth), the terminal even after the recent expansion will reach capacity soon.

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