Myanmar Airways International is to acquire Airbus A320s on lease, in the face of threatened US Government trade sanctions being imposed against Myanmar's Yangon regime.
The three-year-old joint venture (with Singapore) carrier is understood to be finalising a five-year operating lease with Airbus Industrie for two International Aero Engines V2500-powered A320s. The aircraft are, scheduled to be delivered in December.
Myanmar needs additional aircraft to partially replace its two Boeing 737-400s leased from Malaysia Airlines (MAS). One of the aircraft is due to be returned to MAS, by the end of the year for sale, to Jet Airways of India.
Major international leasing companies have been reluctant to provide the airline with replacement jet-powered aircraft, particularly US-built products. According to one source, the threat of possible US sanctions has undermined financing for any long-term lease.
Recent discussions within the US Government and Congress, on imposing economic sanctions against Myanmar, has made potential investors nervous.
Companies fear a situation, similar to that experienced in Vietnam, where a US trade embargo, effectively prevented any US aircraft being sold or leased to Vietnam Airlines for many years. Non-US-companies were only able to lease 737s after agreeing that the aircraft would not remain in Vietnam overnight or appear in local airline colours. The bulk of Vietnam Airlines' fleet consequently now consists of A320s.
Despite an offer from Boeing to lease 737-300/400s, the airline has instead provisionally agreed to take two A320s now on lease to China Airlines until December.
Source: Flight International
