Budget carrier Thai AirAsia is to launch a second route to Myanmar this autumn with a new four times weekly service between Bangkok Don Mueang and Mandalay due to commence on October 4, 2012. The carrier will be the first low-cost operator to fly to the city, the second-largest city and the last royal capital of Burma.
Mandalay is the economic hub of Upper Burma and considered the centre of Burmese culture. A continuing influx of Chinese immigrants, mostly from Yunnan Province, in the past twenty years, has reshaped the city's ethnic makeup and increased commerce with China and despite the recent rise of Naypyidaw, the city remains Upper Burma's main commercial, educational and health centre.
There are currently only very limited international air connections to Mandalay International Airport. China Eastern Airlines has provided a link to the Chinese city of Kunming since March 2003 and added non-stop services to Mangshi in April last year. In the mid-2000s there were also regular flights to Chiang Mai and Chiang Rai, while the now closed Phuket Air provided links to Bangkok.
Thai AirAsia entered the Myanmar market in August 2006 when it inaugurated flights between Bangkok and Yangon. These were initially operated on a daily basis but a second daily rotation was introduced in late 2010 to support growing demand on the route and now a third will be introduced from October 4, 2012. The budget carrier believes its network expansion in the Southeast Asian country will help it develop a leadership position ahead of the launch of the Asean Economic Community in 2015. It is also reported to be looking to serve Bagan and Naypyitaw in the future.
According to statistics from the Tourism Authority of Thailand (TAT), last year around 110,000 visitors from Myanmar came to Thailand, while 62,000 Thais went to Myanmar. Thai tourists to Myanmar are expected to rise 10 per cent next year and 13 per cent in the following year, according to forecasts from TAT. The tourism authority is planning to promote the region as a single destination, where travellers can easily move from city to city and is working with Burmese authorities on a joint cooperation plan.
There is a growing interest in the Myanmar market from foreign airlines due to the growing business and leisure links that are developing with the country. A number of airlines including All Nippon Airways (ANA), Dragonair, EVA Air and Qatar Airways have either confirmed or announced their intent to launch flights this year, while local press reports claim that airlines from Germany and Bangladesh have approached Myanmar's civil aviation authority about launching direct flights to Yangon, citing authority officials.