Nov 17, 2014

Japan firms to run Mandalay airport

A consortium of Mitsubishi Corp and a Japan Airlines Co affiliate has signed a concession agreement with the Myanmar government to operate the country's second-largest airport, Mandalay International Airport, for 30 years, a statement from the consortium said Monday.

JALUX Inc, Mitsubishi Corp and Yoma Development Group Ltd, a wholly owned local subsidiary of Yoma Strategic Holdings Ltd, signed the agreement with the Department of Civil Aviation at a hotel in Yangon on Sunday in a ceremony attended by senior officials led by the transport minister, the statement said.

The three companies have established special purpose company MC-Jalux Airport Services Co in Myanmar with JALUX and Mitsubishi each holding 45.5% of the shares. Yoma holds the remaining 9 percent, it said.

The joint firm will undertake the operation, rehabilitation and maintenance of airport facilities, including terminal buildings and runway, excluding air traffic control, with the operations scheduled to begin around March next year, the statement added.

Being the second-largest airport in terms of passenger traffic, Mandalay International is a major hub, connecting 11 domestic and four international destinations.

Air travel is one of the fastest methods of transportation in Myanmar.

Since 2010, domestic passenger traffic through Mandalay has been increasing by 20% every year, while growth in international flights has been up to 60% annually, according to the statement.

The agreement aims to generate further expansion of domestic and international flights to Mandalay and to increase passenger traffic through the airport, the statement said.

Mandalay International Airport can handle up to 3 million passengers a year, but only 750,000 passengers used it in 2013.

Source: Bangkok Post