Yangon Mingaladon Airport
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- IATA Code
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- Airlines currently operating to this airport with scheduled services
- Air Bagan
All Nippon Airways
Asian Wings Airways
China Eastern Airlines
China Southern Airlines
Golden Myanmar Airlines
Myanmar Airways International
- Airlines currently operating to this airport via codeshare
Yangon International Airport serves the largest city and commercial centre of Burma (Myanmar), Yangon. The airport handles averages over 2 million passengers p/a, and is a hub for the four Burmese carriers Air Bagan, Air Mandalay, Myanma Airways and Yangon Airways. Yangon is also served by over a dozes scheduled airlines from across East and Southeast Asia.
Location of Yangon Mingaladon Airport, Myanmar
219 total articles
13 total articles
Myanmar’s aviation market has huge potential for both local and foreign carriers as the country has recorded some of the highest passenger growth rates in Asia since opening up in 2012. But there are also huge challenges, including infrastructure constraints, over-capacity and unprofitability.
Myanmar currently has eight carriers with at least another four preparing to launch services. Most of these carriers focus on the domestic market, operating similar routes with similar aircraft, a similar product and a similar business model. It is too many carriers given Myanmar’s domestic market consists of less than four million annual passengers. Consolidation is inevitable.
Burmese carriers are also now struggling to compete in Myanmar’s international market as foreign airlines have nearly tripled capacity since the market opened up. Burmese carriers transported less than 300,000 international passengers in the first three quarters of 2013, accounting for less than 16% of the total market.
Asian carriers continue to pour additional capacity into Myanmar, building on increases which were initially pursued in 2H2012 after the market quickly opened as economic sanctions which had been in place for two decades were lifted. The Myanmar international market will exceed 110,000 weekly international seats in Jan-2014, representing an increase of about 40% compared to Jan-2012 and almost 130% compared to Apr-2012, when Aung San Suu Kyi’s National League for Democracy won landmark elections.
But so far the additional capacity has outstripped demand. International passenger traffic in Myanmar has grown by about 70% over the past two years – an impressive figure but not sufficient to keep up with the capacity increases. As a result load factors to and from Myanmar are significantly below the global average.
Nearly all of the 14 foreign carriers which were already serving Myanmar before Apr-2012 have seen load factors on their Myanmar routes drop over the last year. The nine foreign carriers which have launched and retained services to Myanmar since the market opened have also so far recorded lower than normal load factors – generally in the 50% to 70% range.
SIA, Jetstar & Tigerair drive Myanmar-Singapore growth but visa restrictions remain major impediment
The Myanmar-Singapore market is facing potential over-capacity as more flights are added, led by low-cost carriers. Tigerair launched services to Yangon in Oct-2013 while Jetstar Asia and Golden Myanmar have both unveiled plans to add capacity on the Yangon-Singapore route.
Passenger numbers between Myanmar and Singapore have increased by about 50% over the last two years. But capacity levels are now up nearly 100%.
Without a waiver of current visa restrictions it is unlikely the market will be able to absorb the additional capacity. Singapore has not approved a proposal from Myanmar to lift visa restrictions although Myanmar is the only Southeast Asian country for which Singapore requires visas. A visa free environment is particularly important for the LCCs, which are eager to stimulate demand on the Yangon-Singapore route.
The Myanmar-Thailand market is experiencing another surge of additional capacity as airlines from both countries continue introducing new flights. There will soon be about 23 daily frequencies between the two countries, up from 14 only a couple of months ago and eight from mid-2012.
So far the demand has not kept up with supply, resulting in unsustainably low load factors. The intense competition also has led to a reduction in yields.
But the market could get a reprieve as Myanmar and Thailand prepare to lift visa requirements. By the end of 2013 Thailand is expected to become one of the first visa-free countries for Myanmar. This should unleash a new wave of passenger growth although for at least the short term the market seems set to continue to suffer from over-capacity.
Golden Myanmar Airlines is preparing for a major expansion phase as the low-cost start-up carrier adds over the next five months a second A320 and two ATR 72-600s.
The additional capacity will be primarily used to expand Golden Myanmar’s domestic network, which currently consists of just one route. The carrier will also add capacity on its only two international routes, Yangon to Bangkok and Singapore, but has decided against launching new scheduled international services in this phase of its development.
As Myanmar’s first LCC, Golden Myanmar is well positioned to take advantage of the huge opportunities in its local market. But there are also challenges as intense competition in the Myanmar market has resulted in over-capacity in most domestic and international routes.
Japan’s All Nippon Airways (ANA) will gain a strategic foothold in Myanmar, one of Asia’s most dynamic and fastest growing markets, following an unusual move to acquire a 49% stake in Asian Wings Airways (AWA). Asian Wings is a small little known domestic carrier, but with financial and management support from ANA could quickly become Myanmar’s largest international airline.
The ANA-AWA surprising partnership is significant as it marks ANA’s first investment in a carrier outside Japan and marks the first overseas investment in any Myanmar carrier. In both cases it will likely not be the only example for long.
ANA is looking to acquire stakes in several Asian carriers as part of its new strategy aimed at diversifying the group’s portfolio. Meanwhile, other Myanmar carriers are looking to secure potential investment from foreign airline groups, including LCC groups. Several Southeast Asian LCCs have been looking at establishing a joint venture or affiliate in Myanmar while the country’s other full-service carriers could also attract interest.
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