Indian Airlines Now Allowed to Fly to Myanmar

Thursday, 13th June 2013 at 10:45am

Part of Myanmar's economic reforms, the government has granted Indian airlines permit to fly to the country after decades-long isolation from most of the outside world.

The recent decision by the government of Myanmar paves the way to the establishment of permanent airlink between the two countries. The two countries never had any direct air connection between them in the past.

Minister Anand Sharma of India's Commerce and Industry has welcomed the Myanmar government's decision allowing India-based airlines to operate air services between the two countries through the fifth freedom rights. A fifth freedom right is given to an airline from a host country whose flight originates or ends in the airline's own country.

With the recent development, SpiceJet has shown interest in mounting an indirect service from Delhi to Yangon via Dhaka in Bangladesh.

According to an airline official, SpiceJet has already applied to serve the route under the fifth-freedom right and still awaiting approval from the regulatory office.

The airline's application came after the bilateral meetings held in Myanmar capital between India's Minister Sharma and various cabinet officials from Myanmar. Representing Myanmar were cabinet officials Minister U Win Myint from Commerce department; Minister U Than Htay from Energy department; Minister U Myat Hein from IT department as well as its Foreign Minister U Wunna Maung Lwin.

Topics discussed during the bilateral meetings include strengthening each other country's economic, cultural and political ties.

During his trip to Myanmar, Minister Sharma also took the opportunity to woo his counterpart to give special consideration to Bharti Airtel and other Indian companies to expand their services in the country.

Minister Sharma briefed the Indian telecom companies, who were going along with him to Myanmar, about the selection process done in the country. The country is seeking for two telecom licenses and has already included 12 applicants in the shortlist.

Aside from the Bharti Airtel, other Indian firms who are eyeing to expand their operations in Myanmar include Bank of India, ONGC Videsh Ltd, SBI and Oil India.

The Minister said that investments from India in Myanmar will reach $2.6 billion within the next few years.

India's current total investment in Myanmar is estimated to be at $274 million making it the 10th largest source of foreign investments into the Southeast Asian nation. Indian companies currently operating in Myanmar include Tata Motors, Essar Energy, Cadila Healthcare, Ranbaxy, Sonalika Tractors and Zydus Pharmaceuticals.

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