THE M3: AIR MACAU

The Macau Metro Monitor.  December 8th, 2009


AIR CHINA INJECTS AROUND US$20 MILLION INTO AIR MACAU macaunews.com.mo

National flag carrier Air China has injected MOP19.84 million (US$19.84 million) into the share capital of Air Macau.  The investment brings Air China’s shareholding in the local airline to 80.86% from 51%.  Air Macau’s board approved and ratified the capital injection last Friday.  The global financial crisis and liberalized access to flights across the Taiwan Strait are said to be contributing to the carrier's lack of profitability.  However Air China remains confident in Macau's future, citing "fast economic growth" in the region and potential synergies between Macau International and Hong Kong International that will arise if the bridges connecting the two special administrative regions via Zhuhai are completed.

Following the completion of the capital injection, the shareholding structure of Air Macau – excluding its non-voting redeemable preference shares – is composed of two million ordinary shares, of which 80.86% is now owned by Air China, just 0.1% by SEAP, 14% by STDM, and the remainder by the government and other shareholders.