Myanmar aviation sector enters a critical phase: CAPA sector report

Myanmar's aviation sector is now at a critical juncture as a new democratic government, which took office at the end of Mar-2016, considers potential policy changes. Both the domestic and international market have been oversupplied in recent years, impacting load factors and profitability. The current domestic landscape, which includes 10 local airlines for a market of less than 3 million passengers, seems unsustainable while the international market has been impacted by aggressive expansion from foreign airlines, along with intensifying competition between Myanmar Airways International (MAI) and Myanmar National Airlines (MNA).

The market is ripe for a shake-up, which should ultimately improve conditions and profitability. Myanmar has huge potential but for at least the short term it faces monumental challenges.

This CAPA report looks in detail at Myanmar's international and domestic market. The international market is currently served by 24 foreign airlines - with three more about to launch services - along with the two main local airlines. The report contains separate chapters on the outlook for foreign airlines, the two main local international airlines (MAI and MNA) and the domestic airlines. There is a final chapter on airport development followed by three sections of supplemental charts providing further details on airports, airlines and tourism.