Indonesian and Myanmarese operators are set to spend millions of dollars on airport upgrades at regional airports in both countries.
In Myanmar, the Ministry of Transportation has pledged MMK2.2billion ($1.9 million) for upgrades to regional airports within the next 12 months.
The airports include Myitkyina, Putao, Bamaw and Naungmon and come on top of recent upgrades to existing facilities aimed at easing tourist processing.
In Indonesia, Angkasa Pura II (APII) the operator of 13 airports including Jakarta's Soekarno-Hatta International, Medan, Pontianak, Padang, Bandung and Banda Aceh is to launch an initial (IPO) to raise up to IDR20 trillion ($1.5 billion).
The company said it will use the cash raised for upgrades and improvements across several of its sites. “If we could sell 25%-30% of the [company] shares, we can get around 20 trillion rupiah,” APII director Budi Karya Sumadi said. “This is what we are planning for.”
APII said the proceeds from the IPO would be used to upgrade key airports, in particular Soekarno-Hatta, which has seen major problems with overcrowding leading to missed schedules by several carriers.
The Myanmar government Directorate of Civil Aviation (DCA) had also looked at a partial or complete IPO for several of its airport facilities last year. However, it put the plans on hold due to lack of investor interest.
It could revamp the plan—to privatize some 30 airports out of a total of 69—if the Myanmar aviation industry continues to expand at its current rate. Likely candidates include tourist hotspots at Bagan, Inle Lake, Thandwe, Sittwe and Dawei, the DCA said.
APII hinted it could also use its funds from the IPO to expand operations in other countries regionally.
“In addition, the company can be more global,” Sumadi said. “If we are financially worldwide, we can also be technically worldwide,” he said.