Chiang Mai (Mizzima) – Domestic airline Yangon Airways will suspend all flights from December 3 in the slipstream of the Burmese civil aviation authority rejection of its operating licence renewal, the carrier has admitted to tour operators.

The privately owned carrier also said it would assist customers in transferring tickets to other airlines.

Its present owner is Aik Hauk, a son-in-law of United Wa State Army (UWSA) chairman Bao Yuxiang, according to a source at the airline.

Observers said the revocation of the carrier’s air operator’s certificate (AOC) reflected the junta’s recent tendency to thwart the ethnic armed ceasefire group’s movement and livelihoods, observers said.

An AOC is granted by a national aviation authority to allow an operator to use aircraft for commercial purposes. It requires that the operator has staff, assets and systems to ensure staff and public safety. It will list the aircraft types and registrations to be used, for what purpose and in what area, including specific airports or geographic regions.    

Notorious drug traffickers, the UWSA has at least 20,000 troops and has rejected the Border Guard Force (BGF) plan, a junta proposal requiring that the groups bring their troops under Burmese Army command. The junta also cancelled national elections in the areas controlled by UWSA, citing security reasons.

The US government imposed sanctions against Yangon Airways under the Kingpin Act 1999, which targets international drug traffickers, on November 13, 2008.

Mizzima tried in vain to reach Yangon Airways for comment.

The carrier was established in 1996 as a joint venture between Myanmar Airways and the Krong-Sombat company of Thailand. In 1997, Myanmar Mayflower company acquired the remaining shares by Krong-Sombat.

In 2003, the US Treasury Department imposed special measures (money-laundering) under Section 311 of the USA Patriot Act against the Myanmar Mayflower bank so junta broke up the bank as a legal entity.

The Yangon Airways fleet comprises two ATR 72-210 aircraft.

Burma has two other carriers, the state-run Myanmar Airways and Air Bagan, owned by Tay Za, a Burmese tycoon and close associate of junta leader Than Shwe.

Following the junta’s brutal crackdown on nationwide protests against it led by monks on the streets of many cities in Burma in 2007, the United States government imposed sanctions against Tay Za and the companies he controls including Air Bagan and Htoo Trading.