Identifier
Created
Classification
Origin
08RANGOON710
2008-09-08 09:36:00
CONFIDENTIAL
Embassy Rangoon
Cable title:
BURMA: MAI LEASES AIR BAGAN PLANE
how-toVZCZCXRO7530 OO RUEHCHI RUEHDT RUEHHM RUEHNH DE RUEHGO #0710/01 2520936 ZNY CCCCC ZZH O 080936Z SEP 08 FM AMEMBASSY RANGOON TO RUEHC/SECSTATE WASHDC IMMEDIATE 8135 INFO RUCNASE/ASEAN MEMBER COLLECTIVE RUEHBY/AMEMBASSY CANBERRA 1500 RUEHBJ/AMEMBASSY BEIJING 2026 RUEHKA/AMEMBASSY DHAKA 4976 RUEHNE/AMEMBASSY NEW DELHI 4989 RUEHUL/AMEMBASSY SEOUL 8582 RUEHKO/AMEMBASSY TOKYO 6151 RUEHMV/AMEMBASSY MONROVIA 0059 RUEHCN/AMCONSUL CHENGDU 1570 RUEHCHI/AMCONSUL CHIANG MAI 1821 RUEHCI/AMCONSUL KOLKATA 0421 RUEHMT/AMCONSUL MONTREAL 0055 RUEAIIA/CIA WASHDC RUEATRS/DEPT OF TREASURY WASHDC RUEKJCS/DIA WASHDC RUEHGV/USMISSION GENEVA 4012 RHEHNSC/NSC WASHDC RUEKJCS/SECDEF WASHDC RUEKJCS/JOINT STAFF WASHDC RUCNDT/USMISSION USUN NEW YORK 1975 RUEHBS/USEU BRUSSELS
C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 000710
SIPDIS
STATE FOR EAP/MLS, INR/EAP, EEB/TRA, CA/OCS/ACS
PACOM FOR FPA
MONTREAL FOR ICAO REPRESENTATIVE
TREASURY FOR OASIA, OFAC
E.O. 12958: DECL: 09/08/2018
TAGS: ECON PREL PGOV EAIR CASC ASEC BM
SUBJECT: BURMA: MAI LEASES AIR BAGAN PLANE
REF: A. RANGOON 664
B. RANGOON 192
C. RANGOON 693
RANGOON 00000710 001.2 OF 002
Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4
(b and d)
Summary
-------
C O N F I D E N T I A L SECTION 01 OF 02 RANGOON 000710
SIPDIS
STATE FOR EAP/MLS, INR/EAP, EEB/TRA, CA/OCS/ACS
PACOM FOR FPA
MONTREAL FOR ICAO REPRESENTATIVE
TREASURY FOR OASIA, OFAC
E.O. 12958: DECL: 09/08/2018
TAGS: ECON PREL PGOV EAIR CASC ASEC BM
SUBJECT: BURMA: MAI LEASES AIR BAGAN PLANE
REF: A. RANGOON 664
B. RANGOON 192
C. RANGOON 693
RANGOON 00000710 001.2 OF 002
Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4
(b and d)
Summary
--------------
1. (C) Myanmar Airways International (MAI),one of Burma's
two international carriers, recently signed a three-month
lease with Air Bagan for a Fokker 100, which will service its
flights from Rangoon to Bangkok. MAI assured us that
potential safety concerns were addressed through a third
party audit and the arrangement with Air Bagan is temporary.
However, given Air Bagan's checkered safety history and the
new link between Air Bagan and MAI, the British and
Australian Embassies in Rangoon are recommending against
flying MAI. We will make the same recommendation in our
Consular Information Sheet. End Summary.
Playing Musical Planes
--------------
2. (C) Myanmar Airways International (MAI),the only one of
Burma's two international airlines (Ref A) currently
operational, recently leased a Fokker 100 from Air Bagan to
service its Rangoon-Bangkok-Rangoon flight. According to MAI
Managing Director Aung Gyi, in early August MAI terminated
its Boeing 737 lease (signed in July 2008) with Thai-owned
Nok Air due to Nok's maintenance problems (Ref A). Desperate
to find a plane to cover its Bangkok route, MAI turned to Air
Bagan, which had grounded several of its planes for financial
reasons. Air Bagan, a Burmese company owned by regime crony
Tay Za, has been bleeding money and offered MAI a three-month
lease for its Fokker 100 at a low price, Aung Gyi noted.
3. (C) Aware that Air Bagan has had severe safety and
maintenance problems (Ref B),MAI brought in an independent
third party, Singapore company FD Aviation, to conduct a
safety audit of the plane. Aung Gyi acknowledged that FD
Aviation identified several minor concerns about the plane,
including lack of up-to-date documents, documents that were
not endorsed by the Civil Aviation Authorities, and lack of
revised manuals from the Fokker company. He emphasized,
however, that these concerns did not indicate technical
problems with the plane. Aung Gyi added that MAI is
concerned about passenger safety, noting that the company has
terminated previous leases due to safety concerns and that
Air Bagan resolved the outstanding issues before MAI signed
the lease.
4. (C) MAI's relationship with Air Bagan is temporary; the
company has already signed a contract with Australian-owned
Jet Star to lease a 2007 Airbus 320 beginning in November
2008, Aung Gyi explained. He opined that Air Bagan would not
resume its international flights, noting that the company
faces cash-flow problems, as well as insurance woes (Ref C).
Questioning Air Bagan's Safety Record
--------------
5. (C) Although MAI is satisfied that its leased Fokker 100
meets international safety and maintenance standards, other
aviation contacts have questioned Air Bagan's commitment to
RANGOON 00000710 002.2 OF 002
safety. Ref C details French-owned Total's November 2007
assessment of Air Bagan's operations, which concluded that
the airline was not safe to fly. The Daewoo Health and
Safety Officer Sandy Thomas told us that Daewoo recently
forbade its expatriates to fly Air Bagan for the same
reasons. He also noted that the GOB Directorate General for
Civil Aviation (DGCA) has little to no oversight over Air
Bagan, as senior officials have told DGCA officials that Air
Bagan is not subject to international regulations. While the
Fokker 100 may be the most reliable plane in Air Bagan's
fleet, reliability is subjective, Thomas added.
No Double Standard
--------------
6. (C) In March 2008, EMBASSY Rangoon submitted to CA a
revised CountQ Specific Information Sheet recommending
against flying Air Bagan due to serious concerns about the
airline's ability to maintain its airplanes. We also
submitted via diplomatic note a request to the Ministry of
Transport to discuss Air Bagan's safety issues, to which we
never received a response (Ref C). Given that MAI has leased
an Air Bagan plane, albeit one with a seemingly acceQble
safety record, and that both the British and Australian
Embassies have recommended formally that their citizens avoid
flying MAI, EMBASSY Rangoon will submit to CA a revised
Country Specific Information Sheet with the same
recommendation. We will also send another diplomatic note to
the Ministry of Transport requesting a meeting to discuss the
safety of Burma's aviation sector.
DINGER
SIPDIS
STATE FOR EAP/MLS, INR/EAP, EEB/TRA, CA/OCS/ACS
PACOM FOR FPA
MONTREAL FOR ICAO REPRESENTATIVE
TREASURY FOR OASIA, OFAC
E.O. 12958: DECL: 09/08/2018
TAGS: ECON PREL PGOV EAIR CASC ASEC BM
SUBJECT: BURMA: MAI LEASES AIR BAGAN PLANE
REF: A. RANGOON 664
B. RANGOON 192
C. RANGOON 693
RANGOON 00000710 001.2 OF 002
Classified By: Economic Officer Samantha A. Carl-Yoder for Reasons 1.4
(b and d)
Summary
--------------
1. (C) Myanmar Airways International (MAI),one of Burma's
two international carriers, recently signed a three-month
lease with Air Bagan for a Fokker 100, which will service its
flights from Rangoon to Bangkok. MAI assured us that
potential safety concerns were addressed through a third
party audit and the arrangement with Air Bagan is temporary.
However, given Air Bagan's checkered safety history and the
new link between Air Bagan and MAI, the British and
Australian Embassies in Rangoon are recommending against
flying MAI. We will make the same recommendation in our
Consular Information Sheet. End Summary.
Playing Musical Planes
--------------
2. (C) Myanmar Airways International (MAI),the only one of
Burma's two international airlines (Ref A) currently
operational, recently leased a Fokker 100 from Air Bagan to
service its Rangoon-Bangkok-Rangoon flight. According to MAI
Managing Director Aung Gyi, in early August MAI terminated
its Boeing 737 lease (signed in July 2008) with Thai-owned
Nok Air due to Nok's maintenance problems (Ref A). Desperate
to find a plane to cover its Bangkok route, MAI turned to Air
Bagan, which had grounded several of its planes for financial
reasons. Air Bagan, a Burmese company owned by regime crony
Tay Za, has been bleeding money and offered MAI a three-month
lease for its Fokker 100 at a low price, Aung Gyi noted.
3. (C) Aware that Air Bagan has had severe safety and
maintenance problems (Ref B),MAI brought in an independent
third party, Singapore company FD Aviation, to conduct a
safety audit of the plane. Aung Gyi acknowledged that FD
Aviation identified several minor concerns about the plane,
including lack of up-to-date documents, documents that were
not endorsed by the Civil Aviation Authorities, and lack of
revised manuals from the Fokker company. He emphasized,
however, that these concerns did not indicate technical
problems with the plane. Aung Gyi added that MAI is
concerned about passenger safety, noting that the company has
terminated previous leases due to safety concerns and that
Air Bagan resolved the outstanding issues before MAI signed
the lease.
4. (C) MAI's relationship with Air Bagan is temporary; the
company has already signed a contract with Australian-owned
Jet Star to lease a 2007 Airbus 320 beginning in November
2008, Aung Gyi explained. He opined that Air Bagan would not
resume its international flights, noting that the company
faces cash-flow problems, as well as insurance woes (Ref C).
Questioning Air Bagan's Safety Record
--------------
5. (C) Although MAI is satisfied that its leased Fokker 100
meets international safety and maintenance standards, other
aviation contacts have questioned Air Bagan's commitment to
RANGOON 00000710 002.2 OF 002
safety. Ref C details French-owned Total's November 2007
assessment of Air Bagan's operations, which concluded that
the airline was not safe to fly. The Daewoo Health and
Safety Officer Sandy Thomas told us that Daewoo recently
forbade its expatriates to fly Air Bagan for the same
reasons. He also noted that the GOB Directorate General for
Civil Aviation (DGCA) has little to no oversight over Air
Bagan, as senior officials have told DGCA officials that Air
Bagan is not subject to international regulations. While the
Fokker 100 may be the most reliable plane in Air Bagan's
fleet, reliability is subjective, Thomas added.
No Double Standard
--------------
6. (C) In March 2008, EMBASSY Rangoon submitted to CA a
revised CountQ Specific Information Sheet recommending
against flying Air Bagan due to serious concerns about the
airline's ability to maintain its airplanes. We also
submitted via diplomatic note a request to the Ministry of
Transport to discuss Air Bagan's safety issues, to which we
never received a response (Ref C). Given that MAI has leased
an Air Bagan plane, albeit one with a seemingly acceQble
safety record, and that both the British and Australian
Embassies have recommended formally that their citizens avoid
flying MAI, EMBASSY Rangoon will submit to CA a revised
Country Specific Information Sheet with the same
recommendation. We will also send another diplomatic note to
the Ministry of Transport requesting a meeting to discuss the
safety of Burma's aviation sector.
DINGER