Macau chief executive's family firms sell stake in Air Macau

Two companies controlled by the family of Macau Chief Executive Edmund Ho Hau-wah have sold their combined 1.25 per cent stake in financially troubled Air Macau to a subsidiary of mainland flag carrier Air China, according to sources.

The private sale for an undisclosed sum to Air Macau majority shareholder CNAC (Macau), confirmed yesterday by sources at Air China and wholly owned subsidiary CNAC, came just weeks after shareholders of the loss-making and technically insolvent Macau airline voted to approve a government-backed 507.3 million pataca rescue package.

Air Macau's financial rescue plan includes an injection of 200 million patacas in taxpayer funds from the Macau government, which Mr Ho heads.

Disposal of his family's stake would appear to alleviate potential concerns over conflict of interest regarding the bailout plan and rescue the family from having to inject further capital into the struggling airline.

'Being a politician, especially in a small region like Macau, [Mr Ho] should be very careful about doing these kind of things, even though his family owns only a small share,' said Larry So Man-yum, an associate professor of public administration at Macau Polytechnic Institute.

Air Macau notified its shareholders of the transaction in a private letter on June 22, according to the Macau-based Portuguese-language newspaper, Ponto Final, which first reported details of the sale on July 10.

Following the sale of the Ho family stake, CNAC's voting interest in Air Macau rises to 52.25 per cent. Other substantial voting shareholders include Portuguese airline TAP, with 15 per cent, and Sociedade de Turismo e Diversoes de Macau, with 14 per cent.