Airports in Emerging MyanmarAirports in Emerging MyanmarAirport Cities Conference 2014Airport Cities Conference 2014

Yangon International Airport (YIA)

Nay Pyi Taw International Airport (NIA)

Sulaiman Zainul Abidin

Chief Operating Officer

Pioneer Aerodrome Services Co., Ltd (Myanmar)

• Population: 65 million

• Urban Population: 34% of total

• Unemployment: 5.4%

• Median Age: 27.2 years

• Land Area: 676,000 sq km

• Political Capital: Nay Pyi Taw

• Largest City: Yangon• Largest City: Yangon

• Geo-strategic position between India and China

• 4 hours covering India and China

• 6 hours to Tokyo and Dubai

• ⅔ of world population within 6 hours

2013 Statistics

• GDP: US$ 89 billion

• GDP Growth: 6.2%

• GDP per Capita: US$ 1,400

• Industries: Minerals, Gems, Forestry (Teak)

• Oil Reserves: 2.1 billion barrels

• Natural Gas Reserves: 7.8 trillion cubic ft

• Huge potential with growing middle-income

• Government transforming political/economic landscape to drive GDP growth and increase living standards

• Attractive place for foreign investments

2012 IMF, CIA

Country 2011 2012 % Chg

Malaysia 24,714,324 25,950,000 + 5.0

• ASEAN Single Aviation Market in 2015

• Important year for multilateral cooperation and working together to with ASEAN Member States to realize Single Aviation Market

• Total visitor arrivals:

Thailand 19,230,470 22,303,065 + 16.0

Singapore 13,171,303 14,356,500 + 9.0

Indonesia 7,649,731 8,147,000 + 6.5

Vietnam 5,988,425 6,585,853 + 10.0

Philippines 3,917,454 4,259,600 + 8.7

Cambodia 2,881,862 3,560,000 + 23.5

Lao PDR 2,723,564 3,050,400 + 12.0

Myanmar 816,369 1,058,995 + 29.7

Brunei 242,061 300,139 + 24.0

TOTAL 81,335,563 89,571,552 + 14.4

Malaysia31.9%

Thailand23.1%

Singapore15.7%

Indonesia9.4%

Vietnam6.9%

Philippines4.7%

Cambodia3.6%

Lao PDR3.3%

Myanmar1.1%

Brunei0.3%

2012 ASEAN Secretariat

• Strong demand to visit Myanmar and current trends suggest that visitor arrivals will continue to rise sharply

• Conservative growth: 13% year-on-year

• Likely growth: 20% from 2013 to 2015 followed by 15% from 2016 onwardsfollowed by 15% from 2016 onwards

• Optimistic growth: 40% from 2013 to 2015 followed by 20% from 2016 onwards

Passenger Traffic in 2013

Year-on-Year Growth

Asia-Pacific + 7.2%

Middle-East +10.1%

Myanmar + 19.4%

• In terms of traffic growth via aviation:

Strengths / Opportunities

• Huge air travel growth to and from Myanmar

• Growing interest of major players from the aviation industry

• Growing middle class with increasing disposable income

• Low labour cost

Weaknesses / Threats

• Lack of infrastructure

• Lack of aviation professionals from top management to the lower ranks

• Human resource and capacity building

• Strategic National Aviation Plan not known

• Evolving Civil Aviation Laws• Low labour cost

• 30+ airports to offer travellers for both leisure and business

• 60+ million population that can potentially travel by air

• ASEAN Open Skies

• Strategically located between emerging World Economic Nations

• Evolving Civil Aviation Laws

• Unprotected market / ASEAN Open Skies

• Over-regulation of airport revenue streams

• Total 69 aerodromes

• 33 airport are operational

• 3 international airports

• 2 international airports operated by Pioneer Aerodrome Services

Nay Pyi Taw International Airport

Yangon International Airport

(PAS)

Mandalay International Airport

• Yangon – main gateway

• Yangon Airport is congested but expansion is underway

• Nay Pyi Taw Airport serves the new political capital

Airport

(PAS)

• 3.7 million passengers in 2013

• Total floor area dedicated on retail only 2,400 sq m

• 1,800 sq m of advertisement spaces

• Although total revenues increased by 39% in 2013 non-aeronautical revenues only contributed 12% of total revenues

MROsFree-Trade

Zone

Education &

Training

Warehouse

&

Distribution

Sports &

Leisure

Facilities

Industrial

Park

Landside

Shopping

Mall

Offices &

Business

Park

Hotel &

ConferencesAdvertisingParking

In-Terminal

Food &

Beverage

In-Terminal

Retail

Residential

Zones

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• New expansion to have about 40% of floor area dedicated to commercial activities

• Target to increase non-aero revenues to 30% by 2016

�� TotalTotal 6969 AirportsAirports

�� 3333 airportsairports areare operationaloperational

�� 33 internationalinternational airportsairports

• Yangon, main gateway to Myanmar

• Walk-through Duty Free

• Signature F&B outlets

• ‘Made-in-Myanmar’ handcrafts section

WarehouseSports & LandsideOffices & In-Terminal

• New airport: 100,000 passengers in 2013

• Currently only 145 sq m of retail

• In 2013 non-aeronautical revenues contributed only 3% of total revenues

MROsFree-Trade

Zone

Education &

Training

Warehouse

&

Distribution

Sports &

Leisure

Facilities

Industrial

Park

Landside

Shopping

Mall

Offices &

Business

Park

Hotel &

ConferencesAdvertisingParking

In-Terminal

Food &

Beverage

In-Terminal

Retail

Residential

Zones

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• Seeking compatible partner to develop Duty Free

• 620 sq m of advertisement spaces up for tender

• Target to increase non-aero revenues to 15% by 2016