The Macau government will inject MOP$344 million (US$43 million) into Air Macau in 2025 by way of a capital increase amid concerns over the sole Macau airline franchisee’s financial state.
According to a report by TDM-Radio Macau, the total capital increase amounts to MOP$1.6 billion (US$200 million), which is proportional to the shareholding. The MOP$344 million injection from the government will go towards Air Macau’s working capital.
The report also noted comments from a government representative, who said the airline is experiencing a “difficult operating situation, which has led to relevant losses”.
Air Macau, a government document states, “finds itself in a situation where the value of its net assets is less than half the value of its share capital” and “in a situation of lack of capital mobility and feeling the pressure of repaying the loan and paying the respective interest.
The government’s contribution is said to have been agreed following a request by Air China, the company’s majority shareholder.
As previously reported by Inside Asian Gaming, Air Macau’s franchise was last year extended for a period of three years or until Macau’s new Civil Aviation Law comes into effect. The company will celebrate 30 years of operations in 2025.
