The Key for Domestic Airlines to Sustain: Cooperation and Union

It has been shown that domestic airlines are dealing with a major problem of financial reducing. Since, merging and cooperate with foreign airlines are the solution.

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Base on the statistics, stakeholders conclude that there will be no future for domestic airlines if the situation of decreasing in the amount of passengers and increasing of ticket prices continue. Unless they shake hands or unites with foreign airlines.

The fact when Government enacted the beneficial laws in 2011, domestic airlines had a remarkable positive changes. But on the other hands, appears the fierce battle of obtaining the link with foreign airlines.

Although more domestic airlines appear and the battle of gaining the market is still difficult, air tickets maintain the high cost. This has been a problem to the prompt tourism, the country domestic airlines ticket is considered way more expensive to other nations.

Minister for Hotels and Tourism – Mr. U Ohn Maung did say to public that domestic airlines have to change its way of working to catch up with foreign airlines.

He gave formerly the opinion of merging between others domestic airlines if the country’s airlines hope to survive in market.

From Myanmar Tourism Federation chair U thet Lwin Toe perspective, this cooperation can help the domestic airlines to reduce the fuel cost and fill the seats.

The report of Centre for Asia Pacific Aviation on May 2018 had informed that many domestic airlines had just caught under the number of three million clients.

It confirmed that the fierce race has changed many airlines’ fate, which caused the result that some of them had to stop working for a short time or gave up.

On January 1st, Asian Wings paused the services while FMI Air, Air Mandalay, Air Bagan and Apex Airlines have been active for the past years.

Once an official warned that domestic airlines finance will not be stable to provide the route due to a small number of passengers, this is also a great issue for foreign airlines to form partnership with the domestic ones. He also stated that depending on local market is a high risk, especially in the decreasing economic.

It is not a 100 % win for anyone in this competition, even when foreign and domestic airlines join together, they are hardly to assure the success.

It was claimed by the directorate of Hotel and Tourism deputy director general – Mr. Daw Than Win that the lack of passengers is reason for the delay of the commuting route between Bagan and Angkor though two governments had signed the MoU.

Foreign airlines that cooperated with domestic airlines, have been tripping several times fail, such as All Nippon Airways and Air Asia.

The enacted laws gave foreign airlines the right to own 49pc stake.

Ministry of Transport and Communications assistant secretary U Aung Ye Tun stated that airlines can have unlimited cooperation.

“In the present time, exist the state-owned and national-owned lines organize domestic routes. If the market require for more routes operated and any request from non-government airlines, we will accept to go through.”

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