Myanmar’s domestic market continues to struggle, dragged down by slow growth and unprofitability. Consolidation has been elusive, resulting in 10 players for a market of less than 3 million passengers.
Mergers and exits are inevitable. The current situation, with several airlines competing on relatively small trunk routes, is unsustainable. The new government could pursue reforms that shake up Myanmar’s airline sector and improve profitability. However, change is hardly a certainty.
This is the third in a series of analysis reports on the Myanmar market. The first report focused on the foreign airline sector and the overall growth in Myanmar’s dynamic international market. The second report examined the outlook for Myanmar’s two main international operators, Myanmar Airways International (MAI) and Myanmar National Airlines (MNA).
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