Market conditions in the highly competitive Myanmar domestic airline market could become even more challenging as competition further intensifies. There are currently eight airlines operating in Myanmar’s domestic market, with a ninth close to launching services and two more aiming to begin operations by the end of 2014.
Consolidation is likely as almost every carrier is unprofitable. But there is some hope for improvement as Myanmar has promised to put a moratorium on more start-ups and eliminate taxes on fuel and aircraft.
Passenger demand also continues to grow as Myanmar emerges as a popular tourist destination and the economy expands. There are huge long-term opportunities but for now the domestic market environment is difficult and is not particularly conducive for the low-cost model.
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