Myanmar’s Mandalay Airport is to be run by Japan-based Mitsubishi, Jalux and Yoma Strategic Holdings.
A special purpose company, MC-Jalux Airport Services (MJAS) has been set up by the three companies to manage the airport.
The companies have reached an agreement with Myanmar’s Department of Civil Aviation (DCA) for the concession to operate the airport for the next 30 years.
While Jalux and Mitsubishi hold 45.5% each in the new company, Yoma holds the remaining 9%.
MJAS would deal with the operation, rehabilitation and maintenance of airport facilities, which would include terminal buildings and runway, excluding air traffic control.
While Mitsubishi will apply its experience in construction and operation of airport facilities and other types of infrastructure development, Yoma will provide its real estate development expertise and established local expertise.
Mandalay Airport is considered to be a major hub in Myanmar that connects eleven domestic and four international destinations.
The airport has witnessed an upward trend in its passenger traffic since 2010, with domestic passenger traffic seeing a 20% increase per annum and international flights seeing a 60% annual growth.
The aim of the project is to generate further expansion of both domestic and international flights to Mandalay, which would lead to an increase in passenger traffic at the airport.
The Mandalay airport has the capacity to handle three million passengers a year. However it serviced only around 750,000 travellers in 2013, 190,000 of which were domestic and 560,000 were international passengers.
Image: Myanmar’s Mandalay Airport. Photo: courtesy of Mitsubishi.