September 5, 2018
AIR Mandalay Limited, a 24 year-old airline operating domestic scheduled and charter services in Myanmar, announced that it has temporarily suspended its operations and may resume its services at a future date subject to restructuring and improvement in the market conditions.
Passengers booked to travel with Air Mandalay after 4th September, 2018 will receive a full refund of their fares.
According to the airline’s spokeswoman Daw May Thandar Win, “It is increasingly challenging to operate in Myanmar’s aviation sector. Air Mandalay is presently working closely with the government to resolve a number of issues affecting the airline and the aviation industry. The first priority for the airline is to look after the welfare of its employees and their job security”.
Air Mandalay Limited is a foreign private joint venture airline with the government formed under the Special Company Act 1950.
It was incorporated on 6th October 1994 to support the country’s air connectivity and tourism industry.
It has been extremely difficult to operate in Myanmar during the sanction years and this has worsened since 2011, where a number of new airline licenses were approved to operate in the country resulting in too many domestic carriers, oversupply of seats and intense competition, with airlines suffering heavy losses.
Among other challenges Air Mandalay faced were in 2014-2015, it could not operate for more than 1 year due to the delay in issuance of import permit for its two (2) Embraer ERJ145 jet aircraft and another 9 months in 2017-2018 which was caused by the delay in approval to import and register aircraft for public air transport services under Category B (CHAPTER II. THE UNION OF MYANMAR AIRCRAFT RULES, 1937) and the Air Operators Certificate re-certification process