Allocation of flight charge money discussed in Pyithu Htuttaw

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Pyithu Hluttaw is being convened in Nay Pyi Taw.

How revenue from international flight fees are being spent was discussed on the fifth day of the Pyithu Htuttaw’s fourth regular session.
The discussion was started in response to a question by the U Tun Tun, a Member of Parliament for the Pyint Phyu constituency.
“I would like to know which ministry is collecting the over flight charges starting from which year and how this revenue is being spent,” U Tun Tun questions.
International flights that pass over Myanmar air space are charged a fee, called an overflight fee. The response came from U Kyaw Myo, Deputy Minister for Transportation and Communication.
“The Department of Civil Aviation has collected the overflight service charges since 1948 under the Aviation law enacted in 1948. The rate of the overflight fee is collected based on the weight of the flight according to the guidelines of the International Aviation Association.
“We paid all collected money to the government through the ministry and spent systematically those funds under the management of the government,” the deputy minister said.
According to ministry statistics, international flights over Myanmar can currently reach 600 a day. Revenue from the overflight charges was USD$83.233 million in the 2015-2016 fiscal year and USD$58.491 million as of December 31 in the current fiscal year.
The deputy minister made clarifications on the issue of direct flights from Nay Pyi Taw to Kyaing Tong once a week by U Steven, MP for Kyaingtong constituency that there is one state-owned airline and nine private airlines in Myanmar and that state-owned Myanmar National Airline has commercially run as an international airline without asking for budget assistance from the government since 2013-2014, when the ministry replaced old planes with modern Boeings or ATRs and established aircraft maintenance buildings in which the ministry has invested and took out loans from GECAS Co, Ltd for items over budget.
“We invested a large amount of money. Currently we have overhead costs and some domestic routes have not been operated commercially. We had operated direct flight from Kyaing Tone to Nay Pyi Taw from 2010 to 2014 but we stopped it as the revenue cannot cover the operation cost,” he replied, adding that private airlines also have not operated the unprofitable Kyaing Tong-Nay Pyi Taw route.

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