Myanmar to craft aviation policy

21 Jun 2016  2063 | Business & Trade Fairs

YANGON Myanmar’s Department of Civil Aviation confirmed, last week, it is crafting a new aviation  legislation to be presented to the government soon.

One of the clauses will put the brake on airline expansion. The country has 11 airlines operating services and officials say rules governing applications for permits will be tightened.

Myanmar Times quoted air transport director, U Ne Win, saying the DCA has not decided on what measures would be adopted to limit the number of airlines, but the brakes will be applied through stiffer rules.

inside no 3“Future qualifications for setting up a new airline will be much tighter and airlines will have to comply with much higher safety standards,” the director said.

The new air transport policy, which is being drawn up as part of the government’s 100-days fast-track initiative, will be presented to the Ministry of Transport and Communications to review the draft before it is presented as legislation for parliament to approve, he said.

“We will also include [measures] regarding tax and customs duty because sometimes they interfere with the development of the air transport sector…in most countries the aviation sector requests taxes be waived or reduced, and our airlines also ask for similar incentives.”

The new policy would also address fuel prices, which should be lowered to help support the sector, the director added.

Currently, Myanmar has 11 airlines, but a joint venture between Japan’s ANA Holdings and a local company gained approval from the Myanmar Investment Commission earlier this year, the report said. That would give the country 12 competing airlines in a market that is already over supplied.

According to the Centre for Asia Pacific Aviation’s recent analysis, Myanmar’s aviation sector stands at the crossroads following the installation of a democratic government, which took office at the end of March.

It is likely to lead to a rethink of policies and could force airlines to revisit their ambitious plans. Both the domestic and international markets are oversupplied and this has impacted on load factors and profitability.

Also the international market has been impacted by aggressive expansion from foreign airlines, along with more competition between Myanmar Airways International (MAI) and Myanmar National Airlines (MNA).

Myanmar has huge potential, but in the short term it faces monumental challenges, the centre claimed.

sourced:ttrweekly.com 

Recommended Cambodia Tours

Cambodia Day Tours

Cambodia Day Tours

Angkor Temple Tours

Angkor Temple Tours

Cambodia Classic Tours

Cambodia Classic Tours

Promotion Tours

Promotion Tours

Adventure Tours

Adventure Tours

Cycling Tours

Cycling Tours