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Myanmar aviation Part 4: airport development enables growth but Yangon unlikely to regain hub status

Myanmar is on track to accommodate rapid aviation growth following major airport investments at Yangon. Expansion of the current Yangon airport and construction of a new airport support an initiative to grow Myanmar’s promising tourism sector rapidly.

The upgraded Yangon Airport is also keen to take on a hub role, regaining a position it had several decades ago when it served as a stop for flights heading between Asia and Europe. A much larger local airline would be needed for Yangon to develop fully as a hub.

All Nippon Airways and a local partner are proposing a new joint venture international airline, Asian Blue, which could potentially support Yangon’s hub aspirations. However, the business case for Asian Blue is not clear-cut, as the new airline will have to compete against Myanmar’s two existing international airlines. There will also be stiff competition from Southeast Asia’s established network airlines and hubs.

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