AirAsia Group is in talks with an unspecified airline in Myanmar that could lead to the budget carrier gaining entry into the country.
Speaking to Reuters, Group chief executive Tony Fernandes said: “We had a good meeting with someone in Sydney - he’s got a good airline that we’ve known for a long time and he is a well-respected guy. We’re going through that process.”
According to Fernandes, the lack of infrastructure in Myanmar will likely inhibit growth as compared to other countries in Asia where the group has invested.
“It’s not going to be a big airline there, because the airport infrastructure is not there. But it is 50 million people and it will develop over time,” he said.
According to the ch-aviation airline module, Myanmar is currently home to several locally-based operators the most prominent of which is Myanmar National Airlines, followed by Air KBZ, FMI Air, Golden Myanmar Airlines, Mann Yadanarpon Airlines, MAI - Myanmar Airways International and Yangon Airways.
The decision to invest in an already certificated airline comes after Japan's ANA Holdings was forced to abandon its nascent Asian Blue Aviation partnership after the Myanmar Department of Civil Aviation rejected its application for an Air Operator's Certificate (AOC).
As it stands, AirAsia maintains operational carriers across Asia with AirAsia in Malaysia, Thai AirAsia, Philippines AirAsia, Indonesia AirAsia, AirAsia Japan, and AirAsia India. It is also in the process of entering the Chinese and Vietnamese markets which Fernandes hopes to have operational during the second half of the year. While AirAsia China is a greenfield project, the latter mirrors the Myanmar operation wherein the Malaysia holding will acquire equity in an existing carrier - Hai Au Aviation - which will then be rebranded as AirAsia.
Other countries where AirAsia is looking to develop subsidiaries include AirAsia Cambodia (2017) and AirAsia Sri Lanka.
