Myanmar: The Next Asian Dragon

Myanmar’s Aviation Industry is at a serious juncture in its evolvement and no longer sustainable in its current and present shape.

Over the past five years Myanmar has approved the start-up of four new domestic airlines and revamp and rebrand of its national airline, “ Myanmar National Airlines”, to stimulate both domestic and international air travel. Myanmar is set to become one of Asia new rising stars over the next decade. This is further reflected in a commitment to building a safe , reliable and affordable modus of transportation for the people of Myanmar as well as support a rapidly growing international travel market – 6 Million in 2017 and which is expected to grow at 7-8% in 2018.

Over the past 5 years, Myanmar Aviation has successes witnessed the implementation of the following visible milestones:-
– EIS of 16 new ATR72-600s
– EIS of 4 new Boeing 737- 800s
– New Domestic / International Terminal at RGN to cater to 20M PAX a year
– Opening of NYT to serve the Capitol and seat of government
– Improved and upgraded terminal facilities at MDL.
– Runway/ Terminal improvements at HEH, AKY, SNW, MYT
– Improved awareness of safety compliance through international safety audits.
– Improving airport infrastructure will now be a priority to maintaining the growing and unstoppable appetite for domestic air travel and supporting domestic carriers improve aircraft utilization which remains low by industry standards.

As stated, the above reflects Myanmar’s commitment to building and developing an “ aviation infrastructure” to support Myanmar’s vision of becoming the next Asian Dragon. However, to build a sustainable aviation industry, we must look outside and challenge and possibly disrupt the status quo.

It can no longer be just “business as usual”.

Aviation has always played a key role in a country’s economic development and has often been the catalyst for stimulating growth in developing new markets and business opportunities.

Myanmar Aviation is at the next stage of its evolution. With more Airports set to be privatized with improved operational capability, plus a more liberal attitude to upgrading existing domestic airports to “international” status, this will automatically stimulate new travel patterns between new city pairs for both business and leisure and at the same time provide greater access to foreign registered carriers to serve new city pairs.
The momentum has already started and Myanmar Aviation must be ready and fit for purpose to compete. Organic growth is no longer the driver in this next stage of the industry’s evolution. Myanmar has the talent, but still requires the capability, International expertise and financial muscle to be relevant for 2020 and beyond.

The economic indicators and outlook are positive with GDP set to grow at an average of 7.5% per annum. The new foreign investment laws being implemented later this year reflects Myanmar’s endorsement to globalization. Aviation plays a key catalyst in stimulating this change.

FMI Air intends to remain relevant and committed to building a sustainable aviation industry. We believe the next stage of growth is through consolidation and/ or JV acquisition. The success of our neighboring countries, i.e. Thailand has been through developing strategic and JV partnerships with airlines such as Scoot from Singapore, Air Asia from Malaysia and Lion Air from Indonesia. All three JVs are successful and continue to play a critical role in developing Thai Aviation and supporting the economic development of the country.

A leap of faith is required to play catch up and remain relevant and to ensure survival of the fittest. The winners will be those who embrace change and are early adopters in embracing change through consolidation, JV or acquisition. It’s just a matter of time and finding the right partner to disrupt and take the industry to the next level of the evolutionary curve.

Source : Market Express

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