Golden opportunity to own an airline

YANGON, 30 August 2012: Prospective investors will be invited to buy shares in the new Golden Myanmar Airlines, according to Myanmar Times.

Cooperative Bank (CB) and Kaung Myanmar Aung Business Development Enterprise chairman, U Khin Maung Aye, told local media that Golden Myanmar Airlines Public Company would invite applications for shares early next month.

“Initially we established Golden Myanmar Airlines Public Company with some strategic shareholders. The next step to invite new shareholders,” he was quoted as saying.

He said the project would ride on the success of Myanmar’s booming tourism industry and shares would cost K10,000 each. The company aims to begin flights in early 2013 and is considering using Mandalay International Airport as its base.

“All the shareholders in the company will be part owners of the airline and we welcome hoteliers and other business people to become shareholders.”

Myanmar Golden Star chairman, U Thein Tun, and Myanmar Airways International former managing director, U Aung Gyi, will be board members of the company and are among  15 main shareholders who have already subscribed.

Golden Myanmar Airlines will compete head-on with Myanmar Airways International and also look at new routes.

“Currently we have only one international airline so there is room for more and this is another reason why we are establishing this company,” he said.

However, there could also be other reasons behind the launch of Golden Myanmar. Both CB Bank and U Thein Tun were previously shareholders in Royal Myanmar Transport, which bought 80% of MAI in early 2010.

However, it is understood they were allegedly forced out of the venture by another shareholder, the Ministry of Transport, which holds the other 20% share in MAI.

The ownership dispute surfaced in January 2011 and prompted a run on CB by depositors, according to The Irrawaddy. The Chiang Mai-based media organisation also reported at the time that President U Thein Sein, who was then Myanmar’s prime minister, stepped in to help CB.

Representatives from MAI and CB declined to confirm the report last week.

But Golden Myanmar has already made its intentions clear by luring many of MAI’s experienced staff with the offer of shares in the new venture.

“Not all but some of the staff from MAI have joined our public company because here they have chance to be shareholders. So those who want to manage their own airline should join us,” he added.

A senior official from MAI, who asked not to be named, confirmed that the company had lost some of its experienced employees.

“It is true that we lost some of our experienced staff. We have nothing particular to say about that issue since it is their individual choice,” she said.

Sourced: ttrweekly