Myanmar domestic aviation: big growth potential but too many airlines
Myanmar’s domestic aviation market has grown by 150% this decade and has huge potential. But the market continues to suffer from overcapacity and a lack of profitability.
There are currently nine airlines competing in a domestic market consisting of less than 3 million passengers. One competitor suspended operations in late 2017 and more consolidation seems inevitable.
One of the remaining nine domestic airlines is for sale, and another is looking at selling a stake to AirAsia. However, Myanmar’s airline owners generally remain reluctant to exit and are content to funnel profits from other businesses to cover losses at their airlines.
A shake-up is long overdue but still unlikely. The domestic market is still not able to support the LCC model.
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