In a move seen to open up more competition for travelers from Macau, the Civil Aviation Authority of Macau (AACM) confirmed it will not renew a 25-year concession agreement with Air Macau.

According to a report from Macau-based and Portugese language publication Hoje Macau, the 25-year agreement which gave Air Macau exclusive rights to public service of air transport of passengers, baggage, cargo, mail, and parcels from and to Macau will not be renewed when it expires in November 2020. A report from the Macau News Agency stated that the airline was informed about the decision in October 2018.

The move comes as the AACM has made diversifying the aviation market a priority based on recommendations from external aviation consultants in a bid to help boost the local economy.

Air Macau is controlled by Air China and partner of Hong Kong-based Cathay Pacific. Macau Airport recently reported that 40 percent of around 8.26 million passengers that passed through the Macau took flights operated by Air Macau.

Located in the Pearl River Delta, Macau has been a tourist attraction with its casinos and historic sites. In terms of the aviation industry, it has been overshadowed by nearby hubs of Hong Kong, Shenzhen, and Guangzhou.

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