Myanmar has announced plans to privatise all domestic airport management businesses. While it has been suggested that the scheme is aimed at promoting the civil aviation industries in Myanmar, we believe that it is also intended to increase tax revenues to fuel the country’s airport expansion plans, as well as to develop civilian airline facilities, to upgrade existing facilities and to reduce governmental spending on such infrastructure. We further note that this scheme is unlikely to benefit international airport operators, as Myanmar’s airport industry remains closed to foreign participation. The final decision on the financial, technical and performance capacity aspects of the initiative have yet to be finalised.
Of Myanmar’s 46 airports, 16 are not currently operational.
