New research proposes two strategic plans to position Macao as a player in aircraft financial-leasing operations involving airlines from Portuguese-speaking countries. The study’s authors argue that such a role could facilitate the launch of a greater number of direct air routes between China and Portuguese-speaking places worldwide
In a new study, a team of researchers from Macao and Hong Kong – including two scholars from UTM – has examined the feasibility of aircraft financial-leasing transactions involving Macao and Portuguese-speaking countries. The authors identified “promising prospects” for the development of an aircraft financial-leasing sector in Macao, making use of the city’s resources and “distinctive” areas of competency.
The researchers proposed two strategic plans to support Macao in this niche market. The first suggested finance-leasing companies based in Macao could directly act as lessors for aircraft. The city’s government could provide funds to those local firms, which would be “exclusively used to purchase aircraft and lease them to airlines in Portuguese-speaking countries,” according to the scholars.
The second option envisioned Macao acting as a provider of funds or a guarantor of the aircraft-leasing transactions. In this scenario, Macao would cooperate with Mainland-based aircraft finance-lease companies, using investment-fund companies owned by the city’s government.
The research aimed to contribute to enhancing Macao’s role as a service platform between China and the lusophone world, particularly in aviation-related financing, the authors suggested. Macao’s involvement could facilitate cooperation between airlines from Portuguese-speaking countries and leasing companies affiliated with mainland Chinese airlines, they said.
The study was conducted by four scholars associated with Macao-based higher education institutions, alongside one scholar from The Hong Kong Polytechnic University. Among the authors were UTM Assistant Professor Dr. Jenny Guan Jieqi and Dr. Cindia Lam Ching Chi, Dean of UTM’s Institute of Executive and Professional Development.
The group’s findings were presented in the academic paper “Macao’s Potential to Participate in Aircraft Financial Leasing Between China and Portuguese-Speaking Countries”, published online in June in the Journal of China Tourism Research. The study was funded by the Macao Foundation.
The research included in-depth interviews with 10 strategically-selected individuals, representing different stakeholders either in the finance, aviation, legal affairs, or international trade sector. Interviewees included scholars, professionals, government advisors, and representatives from relevant Macao-based associations.
The researchers highlighted that Macao’s involvement in aircraft financial-leasing transactions that benefit airlines from Portuguese-speaking countries could potentially increase the number of direct flights between China – including Macao – and those nations.
The study offered a comprehensive analysis of the advantages and challenges specific to Macao concerning each proposed plan. It also identified key factors that could influence Macao’s participation in the aviation financial-leasing market.
The authors emphasised that their goal was to “inform strategic decision-making, contributing to the sustainable development of Macao’s tourism and hospitality industries.”
Editor: UTM Public Relations Team
