ANA mulls Myanmar airline

YANGON ANA Holdings says it is pressing ahead with plans to set up a new airline venture in Myanmar’s overcrowded aviation market.

The new venture aims to start international flights in 2018.

Japan Times quoted the airline CEO, Shinya Katanozaka, saying ANA has a 49% stake in the new venture and a local company holds the balance.

The companies have made a combined initial investment of USD150,000 (about ¥17.3 million) in the venture so far, he said.

“Myanmar’s economic power is growing…we want to help contribute to the boom in business and overseas holiday travel.”

The Myanmar venture will start with a couple of aircraft supplied by ANA, he said.

It will be a difficult venture as competition in Myanmar is fierce and the market is relatively small compared with other ASEAN nations. But in its favour, Myanmar, in the long-term, has vast potential to grow its travel industry both inbound and outbound.

Based on an Irrawaddy media report, ANA will partner with Shwe Thanlwin Co., owned by U Kyaw Win. The group operates transportation, banking and broadcast media in Myanmar, the report said.

However, ANA originally asked for an 80% stake with 20% going to Shwe Thanlwin. That is unlikely due to the country’s laws on foreign investment and a policy to protect the aviation industry.

Foreign investment ventures in Myanmar require an ownership ratio of 49% for the foreign investor and the 51% for the local company.

ANA wants to establish a base in Myanmar to exploit the country’s air traffic right resources especially with European nations. Yangon could ultimately become the closest ASEAN aviation gateway for European airlines a good one hour shorter than to Bangkok.

In 2014, ANA attempted to buy 49% of Asian Wings Airways Ltd, a domestic airline in Myanmar and pulled out of talks saying there was too much competition in the aviation market. That sentiment remains relevant today.