Burma - AviationBurma - Aviation
Overview
With ongoing economic reforms and growth of it middle class, the Myanmar aviation sector is emerging as attractive area for business opportunities. As stated by the Myanmar Department of Civil Aviation (DCA), the number of international air passengers to and from Myanmar rocketed from 1 million in 2010 to 6.65 million in 2016. The number of domestic air passengers increased roughly 4 times from 1.2 million to 4.6 million from 2010 to 2015. However, the aviation sector had its slowest growth rate in 2018 due to a decline in tourism resulting in only 2 percent growth of international passengers as well as domestic traffic (with negative growth of 5 percent in 2018).
The Myanmar aviation sector is managed by the DCA, which is part of the Ministry of Transport and Communications (MOTC). DCA manages the civil aviation administration and air navigation services. MOTC has recently engaged in 48 agreements to increase international flights, as well as to establish separate framework agreements between Myanmar and Cambodia, Laos, Vietnam, Bhutan, and the Netherlands. DCA is trying to strengthen the aviation sector through its new strategic plan, which includes calling for improved infrastructure, promoting the airline business and securing air service agreements with international partners.
Myanmar has three international airports and 30 domestic airports (as well as 36 inactive airfields), serving 28 foreign air operators and nine domestic. Among the nine domestic operators, Myanmar National Airlines (MNA), Myanmar’s national flag carrier, operates both domestic and international routes. Myanmar’s only other international airline is Myanmar Airways International (MAI).
Myanmar’s three international airports are: Yangon International Airport (YIA) (airport code: RGN) managed by the Yangon Aerodrome Company; Naypyidaw International Airport managed by the Pioneer Aerodrome Services Company; and Mandalay International Airport managed by the Mitsubishi Group and JALUX- an affiliate of Japan Airlines since 2014.
Among the three international airports, YIA is the largest and busiest for both passengers and cargo with steady growth in visitor traffic over the last few years. YIA is strategically located between India and China, two countries that hold two-thirds of the world’s population. YIA is also within six hours flying range of other international hubs such as Tokyo, Dubai, Singapore, Bangkok and Kuala Lumpur. In 2017, a total of 5.9 million passengers and 28 international airlines used YIA.
The aviation market in Myanmar is competitive, especially among local airlines for which the ASEAN Open Skies Policy acts as a de facto burden as it provides rights to regional airlines to fly directly from their home countries to Nay Pyi Taw and Mandalay. At the same time, 9 private local airlines own a small number of aircraft and follow the same blueprint pattern of scheduling, fares and pricing conditions which hinders them from achieving economies of scale. In addition, they are facing funding issues. Recently, the Government sought to expand and rebrand MNA to become more competitive internationally. The domestic airline industry is facing heavy competition from foreign carriers in the market. Thailand occupies the largest foreign share of the Myanmar aviation market followed by Singapore. The top Thai airlines in the market are Bangkok Airways, Thai Air Asia, Thai Airways International and Nok Air. These carriers have secured significant market shares by the connections from their hubs in Thailand, comparable fare prices and brand recognition. Next in market share are airlines based in Singapore: Silk Air, Singapore Airlines and Tiger Air.
In order to implement all the planned airport infrastructure projects, DCA is strengthening its policies and drafting the Myanmar Airport Authority Law, which will regulate airport services, ensure local carriers adhere to better safety and quality standards and enable the privatization of airports. Aligned with the new plan, YIA was expanded in 2017 adding a new international terminal. The airport was designed to serve 2.7 million passengers per year but is currently over capacity. As a result, plans for a new airport, Hanthawaddy International Airport (HIA), have been established to meet demand and fill the service gap.
New Hanthawaddy International Airport
With support from DCA, HIA in Bago, 80 kilometer north-east of Yangon, will become the second largest airport in Myanmar upon completion, offering an initial capacity of 12 million passengers annually, with a 3,600 meter runway capable of handling aircraft such as the Airbus A340 and the Boeing 747/ 737. HIA will also include taxiways, aircraft stands, baggage handling and other support systems. Yongnam Holdings, Changi Airport Planners and Engineers (CAPE) and JGC Corporation submitted proposals to DCA in 2012 and 2014 for a contract to design, construct, operate and maintain the airport under a 30-year concession period. All failed to proceed. This project has been expected to attract new airlines to Myanmar’s aviation market and encourage existing local airlines to add new routes. The $1.5 billion project is under its fifth cycle to start up again. The Japan International Cooperation Agency (JICA) has estimated the project to actually cost $2 billion. With guidance from MOTC, DCA is working to secure loans from the Japanese government. Negotiations between have been taking place with a target to start construction after a signing an agreement by 2020.
Legal Framework
The Myanmar Aircraft Act 1934 (XXII of 1934), the Myanmar Carriage by Air Act 1934 (XX of 1934), the Myanmar Aircraft Rules 1937, the Myanmar Aircraft Rules 1920 (Part IX) and the Myanmar Aircraft Public Health Rules (1946) govern the aviation sector, having been promulgated before Myanmar gained independence on January 4, 1948.
According to the Myanmar Adaptation Laws Order 1948, the Myanmar Aviation Acts and Rules are accepted in operation throughout the Republic of the Union of Myanmar relating to the control of the manufacture, possession, use, operation, sales, import and export of aircraft applying to citizens of the Union wherever they may be, and persons on aircraft registered in the Union, wherever they may be. The Myanmar Aircraft Act and Rules were last amended on August 25, 2004.
Importation and AOC process in Myanmar
Regarding importation of aircraft (including helicopters) into Myanmar, DCA accepts aircraft Type Certification from EASA (European Standard) or FAA (US Standard) approved designs only. Further details can be found in MCAR Part 21, Airworthiness Notices A/9 and A/10: www.dca.gov.mm/home/organization-structure/airworthiness-division-awd
Regarding the Air Operator Certificate (AOC) process, Myanmar, being an ICAO member, requires an AOC in order to operate in Myanmar airspace. The AOC process is handled by the Flight Standards Department of DCA (for further details, see MCAR Part 1 in the link below). DCA prescribes Aviation Rules and Regulations according to ICAO Standards and Recommended Practices. All potential owners/operators of aircraft must follow these Aviation Rules and Regulations in order to operate in Myanmar. www.dca.gov.mm
Opportunities
As part of the National Transportation Master Plan, the GOM is planning to allocate $8.5 billion for sea and airport projects out of a total $21.4 billion for road, rail, ports and aviation projects by the year 2030. It is critical for the GOM to prioritize meeting rising air passenger demand and reducing transportation time and costs. To this end, Myanmar will pursue Public-Private Partnerships (PPP) creating trade and investment opportunities for foreign and private investors.
With the potential to be an aviation hub in the region, Myanmar’s aviation market continues to attract foreign aircraft and aviation technology companies in terms of leasing aircraft, tourism-related aviation, airport weather technology and air traffic management systems.
Ministry of Transportation and Communications
Yangon International Airport/ Official Airport Website
Contact Information
U.S. Commercial Service
Dr. Khine Wah Lwin
Senior Commercial Specialist
Email: KhineWah.Lwin@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.
With ongoing economic reforms and growth of it middle class, the Myanmar aviation sector is emerging as attractive area for business opportunities. As stated by the Myanmar Department of Civil Aviation (DCA), the number of international air passengers to and from Myanmar rocketed from 1 million in 2010 to 6.65 million in 2016. The number of domestic air passengers increased roughly 4 times from 1.2 million to 4.6 million from 2010 to 2015. However, the aviation sector had its slowest growth rate in 2018 due to a decline in tourism resulting in only 2 percent growth of international passengers as well as domestic traffic (with negative growth of 5 percent in 2018).
The Myanmar aviation sector is managed by the DCA, which is part of the Ministry of Transport and Communications (MOTC). DCA manages the civil aviation administration and air navigation services. MOTC has recently engaged in 48 agreements to increase international flights, as well as to establish separate framework agreements between Myanmar and Cambodia, Laos, Vietnam, Bhutan, and the Netherlands. DCA is trying to strengthen the aviation sector through its new strategic plan, which includes calling for improved infrastructure, promoting the airline business and securing air service agreements with international partners.
Myanmar has three international airports and 30 domestic airports (as well as 36 inactive airfields), serving 28 foreign air operators and nine domestic. Among the nine domestic operators, Myanmar National Airlines (MNA), Myanmar’s national flag carrier, operates both domestic and international routes. Myanmar’s only other international airline is Myanmar Airways International (MAI).
Myanmar’s three international airports are: Yangon International Airport (YIA) (airport code: RGN) managed by the Yangon Aerodrome Company; Naypyidaw International Airport managed by the Pioneer Aerodrome Services Company; and Mandalay International Airport managed by the Mitsubishi Group and JALUX- an affiliate of Japan Airlines since 2014.
Among the three international airports, YIA is the largest and busiest for both passengers and cargo with steady growth in visitor traffic over the last few years. YIA is strategically located between India and China, two countries that hold two-thirds of the world’s population. YIA is also within six hours flying range of other international hubs such as Tokyo, Dubai, Singapore, Bangkok and Kuala Lumpur. In 2017, a total of 5.9 million passengers and 28 international airlines used YIA.
The aviation market in Myanmar is competitive, especially among local airlines for which the ASEAN Open Skies Policy acts as a de facto burden as it provides rights to regional airlines to fly directly from their home countries to Nay Pyi Taw and Mandalay. At the same time, 9 private local airlines own a small number of aircraft and follow the same blueprint pattern of scheduling, fares and pricing conditions which hinders them from achieving economies of scale. In addition, they are facing funding issues. Recently, the Government sought to expand and rebrand MNA to become more competitive internationally. The domestic airline industry is facing heavy competition from foreign carriers in the market. Thailand occupies the largest foreign share of the Myanmar aviation market followed by Singapore. The top Thai airlines in the market are Bangkok Airways, Thai Air Asia, Thai Airways International and Nok Air. These carriers have secured significant market shares by the connections from their hubs in Thailand, comparable fare prices and brand recognition. Next in market share are airlines based in Singapore: Silk Air, Singapore Airlines and Tiger Air.
In order to implement all the planned airport infrastructure projects, DCA is strengthening its policies and drafting the Myanmar Airport Authority Law, which will regulate airport services, ensure local carriers adhere to better safety and quality standards and enable the privatization of airports. Aligned with the new plan, YIA was expanded in 2017 adding a new international terminal. The airport was designed to serve 2.7 million passengers per year but is currently over capacity. As a result, plans for a new airport, Hanthawaddy International Airport (HIA), have been established to meet demand and fill the service gap.
New Hanthawaddy International Airport
With support from DCA, HIA in Bago, 80 kilometer north-east of Yangon, will become the second largest airport in Myanmar upon completion, offering an initial capacity of 12 million passengers annually, with a 3,600 meter runway capable of handling aircraft such as the Airbus A340 and the Boeing 747/ 737. HIA will also include taxiways, aircraft stands, baggage handling and other support systems. Yongnam Holdings, Changi Airport Planners and Engineers (CAPE) and JGC Corporation submitted proposals to DCA in 2012 and 2014 for a contract to design, construct, operate and maintain the airport under a 30-year concession period. All failed to proceed. This project has been expected to attract new airlines to Myanmar’s aviation market and encourage existing local airlines to add new routes. The $1.5 billion project is under its fifth cycle to start up again. The Japan International Cooperation Agency (JICA) has estimated the project to actually cost $2 billion. With guidance from MOTC, DCA is working to secure loans from the Japanese government. Negotiations between have been taking place with a target to start construction after a signing an agreement by 2020.
Legal Framework
The Myanmar Aircraft Act 1934 (XXII of 1934), the Myanmar Carriage by Air Act 1934 (XX of 1934), the Myanmar Aircraft Rules 1937, the Myanmar Aircraft Rules 1920 (Part IX) and the Myanmar Aircraft Public Health Rules (1946) govern the aviation sector, having been promulgated before Myanmar gained independence on January 4, 1948.
According to the Myanmar Adaptation Laws Order 1948, the Myanmar Aviation Acts and Rules are accepted in operation throughout the Republic of the Union of Myanmar relating to the control of the manufacture, possession, use, operation, sales, import and export of aircraft applying to citizens of the Union wherever they may be, and persons on aircraft registered in the Union, wherever they may be. The Myanmar Aircraft Act and Rules were last amended on August 25, 2004.
Importation and AOC process in Myanmar
Regarding importation of aircraft (including helicopters) into Myanmar, DCA accepts aircraft Type Certification from EASA (European Standard) or FAA (US Standard) approved designs only. Further details can be found in MCAR Part 21, Airworthiness Notices A/9 and A/10: www.dca.gov.mm/home/organization-structure/airworthiness-division-awd
Regarding the Air Operator Certificate (AOC) process, Myanmar, being an ICAO member, requires an AOC in order to operate in Myanmar airspace. The AOC process is handled by the Flight Standards Department of DCA (for further details, see MCAR Part 1 in the link below). DCA prescribes Aviation Rules and Regulations according to ICAO Standards and Recommended Practices. All potential owners/operators of aircraft must follow these Aviation Rules and Regulations in order to operate in Myanmar. www.dca.gov.mm
Opportunities
As part of the National Transportation Master Plan, the GOM is planning to allocate $8.5 billion for sea and airport projects out of a total $21.4 billion for road, rail, ports and aviation projects by the year 2030. It is critical for the GOM to prioritize meeting rising air passenger demand and reducing transportation time and costs. To this end, Myanmar will pursue Public-Private Partnerships (PPP) creating trade and investment opportunities for foreign and private investors.
With the potential to be an aviation hub in the region, Myanmar’s aviation market continues to attract foreign aircraft and aviation technology companies in terms of leasing aircraft, tourism-related aviation, airport weather technology and air traffic management systems.
Web Resources
Department of Civil AviationMinistry of Transportation and Communications
Yangon International Airport/ Official Airport Website
Contact Information
U.S. Commercial Service
Dr. Khine Wah Lwin
Senior Commercial Specialist
Email: KhineWah.Lwin@trade.gov
Prepared by our U.S. Embassies abroad. With its network of 108 offices across the United States and in more than 75 countries, the U.S. Commercial Service of the U.S. Department of Commerce utilizes its global presence and international marketing expertise to help U.S. companies sell their products and services worldwide. Locate the U.S. Commercial Service trade specialist in the U.S. nearest you by visiting http://export.gov/usoffices.