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Satisfaction is still high when the contest ends: Burma Airways International
KBZ Group airlines, established in 1993, are thinking about how they can face tough foreign competitors, says Aye Mra Tha, Sr. Ex. Established in 1993, RANGOON - Myanmar Airways ltd (MAI) is a vet of the Burmese airlines world. It serves several overseas destinations, such as Thailand, Singapore, Thailand and Malaysia, and is expanding.
Myanmar is predicted to attract more tourism, and has now signed several agreements with ASEAN nations, most recently Thailand. What are the likely companies to be entering the domestic markets? Now, there will be a number of Korean and Burmese carriers flying to Burma. Most of the Thai carriers and VietJet Air of Vietnam, for example, have now arrived in Burma.
Airline companies from other regions will also be coming to Burma soon. What are the main destinations for tourists to Burma? The majority of international tourists come to Burma via Bangkok, Thailand. The majority of our corporate clients come from Thailand and Singapore. ASEAN Open Sky policies will come into force at the end of the year, what are the expected issues facing them in 2016?
But it is time for the preparation of that. Today, domestic carriers are already competing with multinational carriers. Once this is in place, many of our global carriers will come to Burma and there will be quite fierce competitive pressure on the Burmese markets. Already MAI is faced with fierce competitors, and every carrier must increase its advertising, e.g. by giving away cheaper flights and offering better service.
That is why we need to lower our fares in order to compete with other low-cost carriers. The low-cost carriers currently offer more flights. Has MAI a scheme to become a low-cost carrier? A lot of low-cost carriers have arrived in Burma. We currently fly to Thailand, Singapore, India and China.
Our plan is to extend our networks through code-sharing with other carriers. Airline companies cannot simply be on their own. You have to work with as many other carriers as possible. We have now reached an agreement to share codes with Korea and Malaysia and Indonesia's Garuda so that we can live for a long while.
A number of carriers have been reporting casualties lately. Air carriers need enormous capital expenditure to bring their aircraft to market, and extra capital expenditure is also needed. Now, with increased competitive pressure, it is not going to be that simple.