Burma’s national airline sold to private bank

News - Business Source > Min Thet/Mizzima News Thursday, 04 February 2010 19:35

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Rangoon (Mizzima) – Myanmar Airways, Burma’s national carrier has sold 80 per cent of its shares to the privately held Kanbawza (KBZ) bank along with control of the management, sources and media reports said.

With 80 per cent stakes, Kanbawza Bank is said to have taken over the management and administration of the airline but Myanmar Airways retains 20 per cent of the shares. mai

A Burmese civil aviation official, close to officials at Myanmar Airways, told Mizzima that friends told him Aung Ko Win, a business tycoon and owner of Kanbawza Bank, had bought Myanmar Airways shares.

The local weekly in Rangoon, the ‘7 Days Journal’ on Wednesday also reported that Kanbawza Bank, after acquiring 80 per cent shares, has taken over the management of the Myanmar Airways.

However, when contacted by Mizzima, a marketing and commercial executive of the Myanmar Airways in Rangoon said, “We have not made any press release and we cannot talk on the issue.”

Similarly, a Kanbawza Bank official in Rangoon said they were unaware of the information and no senior officers were available to provide an answer.

Myanmar Airways began operations in 1993 under a joint venture between Myanmar Airlines, and the Singaporean Company Region Air (HK) Ltd. While the Myanmar Airlines held 51 per cent and the managing rights, the Singaporean Company held the remaining 49 per cent.

While the Myanmar Airways is the largest Burmese airline, into international operations, it was forced to suspend its international flights in late July 2008, after it failed to meet international safety standards.

Aung Ko Win, Chairman of the Kanbawza Bank, is known to be close to Burmese military junta’s second-in-command Vice-Senior General Maung Aye. He is also one of the few businessmen, who get special permits for business ventures in Burma.

Zaw Win Naing, the Managing Director of Kanbawza Bank is the son of the former military intelligence officer Brig-Gen Than Tun and is also the foster son of Aung Ko Win.

In late July 2008, rumours spread among Rangoon residents that Zaw Win Naing had been detained and interrogated in connection with drug deals. However, the information could not be independently verified.

Later the same year, eyewitnesses told Mizzima that a raid was carried out in the Kanbawza Bank’s head office in Kamayut Township in Rangoon and Chairman Aung Ko Win interrogated.

The Kanbawza group currently has a network of 23 bank branches across the country, has business interests in jade mining in Phakant town in Kacin State and Mine Hsu town in Shan State, which are both popularly known as the land of abundant jade and other precious stones.

Additional reporting by Khaing Suu, Editing by Mungpi

Original source: http://www.mizzima.com/business/3481-burmas-national-airline-sold-to-private-bank.html