Myanmar’s airlines under pressure

YANGON  Myanmar’s home grown airlines will feel the pressure when ASEAN’s open skies policy opens the door for unrestricted flights between capital cities.
Myanmar has already signed off on the open sky policy, but there is considerable misunderstanding in trade circles in Yangon that ASEAN open skies would allow foreign airlines to fly domestic routes.
That is not the case and in most instances open skies applies to flights between capital cities only. Eventually, it will open further to allow foreign airlines free access to other cities, but the agreement does not extend to allowing foreign airlines access to traffic on domestic routes.
Transport deputy minister, U Zin Yaw, said the Ministry of Transport and Department of Civil Aviation have been encouraging mergers with foreign airlines as well as signing contracts to collaborate with foreign airlines to provide an opportunity for local airlines to improve and compete.
inside no 2Foreign airlines can own up to 49% of a local airline, under existing rules, he said.
Myanmar has signed off on the ASEAN Open Skies Policy and while it offers the freedom to fly to all ASEAN member countries, an airline still has to file for permission to fly and some restrictions remain in place to protect national carriers at least for the next two to three years.
Essentially, it allows an airline to fly from its home base to any capital city in the 10-nation group to increase point-to-point services. It does not give an airline the right to extend a service to a third country in ASEAN (fifth freedom rights). That still requires specific permission from relevant aviation authorities.
In the long-term there is a pending provision in the policy to allow airlines to fly from any city in their home country to any city in another ASEAN state. This second phase of liberalisation has not won the full support of all the ministries of transport.
Currently, there are 10 airlines based in Myanmar: Yangon Airway, Air Mandalay, Asian Wings Airline, Golden Myanmar Airlines, Air KBZ, Air Bagan, Mann Yadanarpon, Myanmar National Airlines, Myanmar Airways International and FMI Air, with the eleventh, Apex, in the pipeline.

sourced:ttrweekly.com