By FRONTIER
YANGON — Golden Myanmar Airlines has received Myanmar Investment Commission approval to operate an aviation fuel business, in the first sign of competition for the state-backed monopoly that airlines say has undermined their viability.
However, the new venture does not appear to have received permission to operate at Yangon International Airport, the country’s busiest airport and the base for most domestic airlines.
Golden Myanmar Airlines Public Company Limited received permission for the “importation, storage, distribution, transportation and into plane fueling of jet fuel” at an MIC meeting on April 5, according to the Directorate of Investment and Company Administration.
MIC stated that the wholly Myanmar-owned venture would be located at Tachileik, Kawthaung, Nyaung Oo, Heho, Sittwe and Myitkyina airports, as well Mandalay International Airport. It will also have a jetty terminal at Thilawa in Yangon Region.
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State-owned Myanma Petroleum Products Enterprise was the sole supplier of aviation fuel in Myanmar until 2015, when it formed a joint venture with Singapore’s Puma Energy following a tender.
The joint venture, National Energy Puma Aviation Services, operates at 11 airports, and is the only source of aviation fuel in Myanmar. Airlines and industry observers have said the lack of competition is a factor in their high operating costs.
In October 2018, National Energy Puma Aviation Services increased its capital by more than US$10 million, up from $106 million.
Puma Energy operates in 48 countries and reported net sales of $17.9 billion in 2018.
Established in 2012, Golden Myanmar Airlines operates flights to 10 destinations using two ATR 72-600 aircraft. The company is linked to U Khin Maung Aye, a prominent tycoon who is also chairman of KMA Group and CB Bank.
