MAI may have changed hands

Industry speculation suggests Myanmar Airways International has been privatised after a private bank in Myanmar, Kanbawza, bought 80% of its shares, according to a report published by Irrawaddy online news service, 3 February.

The online publication reported that 80% of MAI?s shares had been sold to Kanbawza Bank, but state owned Myanmar Airways will retain a token 20% stake.

However, the Irrawaddy stated in the report that both MAI and Kanbawza Bank had refused to comment.

?We cannot confirm or provide information on the news, because we are not authorized to speak,? said an MAI public relations official in Yangon.

Kanbawza Bank officials said ?they were too busy to answer questions presented by the publication.?

 Irrawaddy online news service is owned byIrrawaddy Publishing Group an independent, non-profit media organisation, established in 1993 by Burmese journalists living in exile. It claims not to be affiliated with any political organisation or government and operates out of a base in Chiang Mai, Thailand, publishing online news and a printed magazine.

TTR Weekly contacted the airline?s sales office in Bangkok, but executives said they were unaware of any changes in the financial make-up of the airline.

According to the airline?s website, MAI is a joint venture between state owned Myanmar Airways, 51% and Region Air of Hong Kong, 49%.

If the report is correct, the bank acquired the entire stock held by Region Air and topped up its share  to 80% by buying stock  from the state airline that reduced its stake from 51 to just 20%.

The Irrawaddy reported that the bank?s chairman, Aung Ko Win, enjoys close ties to the country?s second in command in the military junta, vice senior general, Maung Aye.

While another local news agency, Mizzima reports that the Kanbawza Group currently has a network of 23 bank branches across the country, and business interests in jade mining in Phakant town in Kacin State and Mine Hsu town in Shan State, which are famous for jade and precious stone mining.

The sale of the airline to the bank is said to be the latest in a string of sell-offs to private companies leading up to national election.

In the past two months, the regime has sold businesses involving hydropower projects, mines, ports, distribution of fuel and government buildings across the country.

Most of the privatisation has involved companies close to the Junta that are on western sanction lists, such as Tay Za?s Htoo Group of Companies and Zaw Zaw?s Max Group of Companies. One of the latest deals involved the Htoo Company?s purchase of fuel outlets, according to the Irrawaddy report.

Sourced = The TTR Weekly