The additional supply of electricity will be purchased in batches from China Southern Power Grid over the next two years, U Tin Maung Oo, permanent secretary of the MOEE, said at a press conference in Nay Pyi Taw.

The electricity will be transported from Dohon in China to Muse, Mine-ye, Hopone, Loikaw and Phayagyi. “Even if we are not able to buy the entire 1000MW, we will purchase at least 300MW,” said U Tin Maung Oo. While Myanmar and China have both signed an initial agreement for the purchase, the authorities still need to discuss pricing and whether the public can afford the additional supply of power.

Source: Myanmar Times

The airline had suspended flights to Myeik for three years and to Sittwe for one. It will now resume flights on these routes on the back of higher demand.

Domestic tour operators confirmed that the number of local visitors to Mergui Archipelago and Rakhine has increased over the recent summer vacation months.

“Of late, demand for flights to these two destinations has increased. There are a lot more local and foreign tourists wanting to visit the Myeik islands in particular so we have reopened flights to meet market demand,” a spokesperson from Air KBZ said.

Flights to Myeik from Yangon will run on Tuesdays, Thursdays and on weekends, while flights to Sittwe from Yangon will run daily, the airline said.

To leverage on higher demand over the summer months from March to May, Air KBZ last month also announced discounted fares of up to 20 percent for local travelers to Heho, Nyaung-U, Myitkyina, Loikaw, Nay Pyi Taw and Dawei, and Nyaung-U based flights to Heho, Mandalay, Thandwe, Dawei and Kawthaung.

During the rainy season, some airlines also operate flights in partnership with others to draw more passengers and air ticket prices are sometimes also reduced to encourage air travel.

Source: Myanmar Times

Yangon-based Golden Myanmar Airlines Public Co received permission from the Myanmar Investment Commission (MIC) on April 5 to take part in the “importation, storage, distribution, transportation and into plane fueling of jet fuel”, according to the list of permitted enterprises from the Directorate of Investment and Company Administration (DICA).

FMR Research & Advisory research manager Chris Markey commented that the move should “alleviate some of the margin pressure faced by Myanmar’s domestic airlines” and bring competition to the jet fuel distribution market.

The new venture would be located at airports in Mandalay, Tachileik, Kawthaung, Nyaung Oo, Heho, Sittwe and Myitkyina, DICA’s announcement stated. It would also have a jetty terminal at Thilawa in southern Yangon. However, Yangon International Airport (YIA) is not included.

A spokesperson of YIA’s operator Yangon Aerodrome Co said they have not received an application from Golden Myanmar Airlines to provide jet fuel services, and that they will assess such applications if there are any.

Since YIA is the base for most domestic airlines, observers say there is yet to be a business case for distributing fuel in all but Yangon’s airports.

Myanmar Competition Commission member U Thuta Aung argued last month that the “lack of real competition in fuel provision at Yangon International Airport” is “the elephant in the room” for the aviation industry.

Until 2015, state-owned Myanma Petroleum Products Enterprise dominated the fuel market. At present, National Energy Puma Aviation Services (NEPAS), a joint venture formed by state-owned Myanma Petroleum Products Enterprise and Singapore’s Puma Energy in 2015, is the only aviation fuel supplier in the country. NEPAS operates at 11 airports, including YIA.

Local players are struggling because of  overcompetition in such a small market as well as the fuel import cartel, some industry observers say. Five Myanmar airlines have folded during the past two years. Asian Wings Airways was suspended on January 1 after Air Mandalay, Air Bagan, Apex airline and FMI Air.

“Myanmar has the most expensive aviation fuel in the ASEAN region, according to U Hlaing Bwar, a long-time aircraft engineer. Since fuel is one of the key variable costs in providing airline services, for all the strength our domestic carriers may develop, they will not flourish if undermined by disproportionate fuel costs,” U Thuta Aung said in a Myanmar Times letter.

Mr Markey, who has produced market reports on Myanmar aviation industry, said a competitive fuel market would lower costs for the struggling companies.

“Domestic airlines have continually claimed jet fuel prices are high and exacerbate financial struggles faced by the airlines, which are already hampered by low passenger load factors and a number of other headwinds.”

There are currently five private and one state-owned carriers in Myanmar.

The filling station is a joint venture between PetroChina International’s Singapore unit Singapore Petroleum Co (SPC) and Shwe Taung Energy Co, a subsidiary of Shwe Taung Group.

Shwe Taung said it will upgrade all of its outlets into SPC brand.

The companies renovated a 750m2 gas station into an SPC facility located at the corner of Pyay Road and Dhammazedi Road in Sanchaung township. It was launched on March 30 and is supplied with gasoline imported from SPC’s Singapore refinery.

SPC managing director Xia Hongwei said there is an increasing demand for quality products and services in Myanmar. “We are seeing considerable growth opportunities in the oil and gas retail market.”

This is the first international name to enter Myanmar since the Myanmar Investment Commission (MIC) liberalised the retail energy sector in 2017. MIC Notification 15, issued in April 2017, stipulates that foreign investors only need approval from the Ministry of Electricity and Energy (MOEE) to distribute and sell fuel.

Source: Myanmar Times

The new facility offers displays of Mercedes-Benz automobiles and expert service in one place for customers in northern Myanmar, said U Aung Moe Kyaw, managing director of Cycle & Carriage Myanmar.

International investors are interested in Mandalay, which has a population of 1.3 million, as a trading centre. Its main highway provides easy access to the China border and Yangon. The vehicle ownership rate in Mandalay is only seven per 1000 people, and as there are few luxury cars in Myanmar, it means there is a large market for Cycle & Carriage Myanmar.

“We have made arrangements for buyers to be able to make hire purchases via AYA, Yoma and CB banks. Cycle & Carriage is 120 years old, so to celebrate, we will be giving out trips to Mongolia, Nepal and South Korea as special presents,” said Cycle & Carriage’s Divisional Manager Charles Cambournac.

Through November 30, buyers from Singapore, Malaysia and Myanmar will have a chance to participate in a lucky draw whenever they spend US$10,000 (K15.13 million) for a Mercedes-Benz, Mazda, or a Mitsubishi Fuso truck.

Source: Myanmar Times