A Myanmar Airways International passenger jet prepares for take-off (Photo: MAI)The Burmese military junta continues to privatize businesses in the pre-election period as Myanmar Airways International (MAI), a state-owned joint venture, has been bought by Kanbawza Bank, owned by a close business associate of the junta.
A Rangoon-based weekly, 7 Days News Journal, reported on Wednesday that Kanbawza Bank will buy up to 80 percent of the airline while state-owned Myanma Airways will hold a 20 percent stake.
A joint venture of the Ministry of Transportation and Myanma Airways, MAI currently flies from Rangoon to Bangkok, Singapore, Kuala Lumpur and Gaya in India.
Bank chairman Aung Ko Win, also known as “Saya Kyaung,” and Kanbawza Bank are on the Western economic sanctions lists. A former school teacher, Aung Ko Win once taught Nandar Aye, the daughter of Junta No. 2 Vice Snr-Gen Maung Aye, when he was commander of the Eastern Regional Military Command based in Shan State.
When Maung Aye was regional commander, Aung Ko Win reportedly became a supplier to regional command headquarters, a connection which helped him to become one of the richest men in Burma. Aung Ko Win also owns a soccer club, Kanbawza FC, in Taunggyi, Shan State.
The sale of the airline to private owners is the latest in a string of decentralization deals leading up to the national election. In the past two months, the regime has sold businesses involving hydropower projects, mines, ports, distribution of fuel and government buildings across the country.
Other business sources in Rangoon said Kanbawza Bank also might like to acquire government-owned Myanma Airways (MA) to challenge Air Bagan, owned by businessman Tay Za.
Recently Air Bagan extended its route from Rangoon to Chiang Mai, in northern Thailand, which was previously serviced by MA’s other joint venture, Air Mandalay.
Both MAI and Kanbawza Bank declined to comment on the deal when contacted by The Irrawaddy.
“We cannot confirm or provide information on the news because we are not authorized to speak,” said an MAI public relations official in Rangoon. Kanbawza Bank officials said they were too busy to answer questions.
In 1993, MAI was formed as a joint venture between Myanmar Airways and Singapore business interests with the support of Royal Brunei Airlines. In February 2007, MAI was reorganized as a joint venture between Myanma Airways, which retained 51 percent, and Hong Kong-based Region Air with a 49 percent stake, according to MAI’s Web site. An MAI official, however, said the information on the Web site may be outdated, but she could not provide any other information about the airline's ownership.
Most of the privatization has involved companies close to the junta that are on Western sanctions lists, such as Tay Za’s Htoo Group of Companies and Zaw Zaw’s Max Group of Companies. One of the latest deals involved the Htoo company's purchase of fuel outlets.
Meanwhile, The Voice Weekly in Rangoon on Monday quoted an official at the Union of Myanmar Federation of Chambers of Commerce and Industry that Burma’s port authority recently agreed to privatize three ports and port properties in Rangoon, the commercial capital.
Since the early 2000s, Alone Port in Rangoon and Burma's largest port, Thilawa in Kyauktan Township, have been operated by Asia World Co. Lt, a company on Western sanctions lists owned by businessman Tun Myint Aung, also known as Steven Law, who is also a close associate of the ruling generals.
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