Asia World Co. urges the Government to take back the Nay Pyi Taw Air Port

The Asia World Company, the contractor for the Nay Pyi Taw International Airport, has urged the government to scrap this project which they said will not be profitable because very few airlines fly to this administrative capital.

The Airport is being financed by the loan from China’s Import and Export Bank and the Myanmar Government on buyers’ credit system.

The Asia World Co. has implemented the first phase of building the airport. But the number of flights to the capital has not increased over time and therefore, the company decided to approach the Myanmar government about scrapping the current project.

“Majority of foreign airlines don’t land in Nay Pyi Taw air port. The Government is still discussing the matter of accepting or not,” said Win Swe Tun, Deputy Director of Department for Civil Aviation.

The Nay Pyi Taw airport terminal was constructed, excluding the cost of runway, at a cost of US $235.181 million and opened on 19 December 2011. The Pioneer Aerodrome Services Co. Ltd takes the responsibility of ground services.

“The profit and loss of an airport depends on airlines. Arrivals of foreign airlines depend on businessmen. Nay Pyi Taw is not a commercial city but just a city of Government Offices. Most of the visitors to Nay Pyi Taw are politicians or guests of the Government. Only when there are international seminars, then the foreign airlines will land. One has to suffer what he decides. Now that they are at a loss and then they want the Government to handle it back is inappropriate. They have to wait for a certain time. The Government has to think seriously to handle the matter which is at a loss. Both side have to respect the contract,” said Myat Thin Aung, Chairperson of Hlaing Thatyar industrial zone on handing over the airport to the Government.

“They have to consider another ways as the Government will also face difficultiues if they are to taking back the airport. They have to seek advice from one of the third party. Asia World said they are facing a loss and ask the Government to take it back. It shouldn’t be like that,” said Chit Khaing Chairperson of Myanmar Rice Industry.

Source: ELEVEN Myanmar

NB: The best way to find information on this website is to key in your search terms into the Search Box in the top right corner of this web page. E.g. of search terms would be “property research report”, ”condominium law”, "Puma Energy", “MOGE”, “yangon new town”,"MECTEL", "hydropower", etc.