MNA suffers over Ks-18 billion in loss in three years

 

Myanmar National Airlines (MNA) suffers a loss of over Ks-18 billion during three fiscal years after the transformation into the company, according the report by the Joint Public Account Committee findings on the Union Auditor-General’s finding report and comment for 2016-2017 FY.

The MNA, which started its operations outside of the Union fund since 2013-2014 FY, has to take over the Myanmar Airways’ money as well as moveable and immoveable properties and salaries of retired staffs that moved to other departments. There was a loss of Ks-8.962 billion in 2015-2016 FY, Ks-5.695 billion in 2016-2017 FY and Ks-3.401 billion in 2017-2018 FY.

The MNA still suffer losses but the rate of losses are declining. Currently, the MNA is offering domestic flight services to 27 towns and oversea flight schedules by 15 flights.

The number of passengers reached 587,272 in 2015-2016 FY, 1,027,904 in 2016-2017 FY and 1,425,439 in 2017-2018 FY.

The Union Auditor-General Office has suggested that the MNA’s operations sustained heavy damages during two years after the purchase of more flights. The MNA should review and scrutinize its purchasing policies and procedures as it has shown weaknesses in buying flights. In addition, the MNA’s cash account opening needs to follow the notification issued by the Ministry of Planning and Finance.

With the approval from a cabinet meeting, the government has to pay a loan of US$ 54.33 million (375.406 million yun) taken by the MNA for the purchase of three Xian MA-60 flights with the loan of Ex-Im bank of China.

The MNA has opened cash accounts at home and abroad, with the approval of the President’s Office. The MNA is shifting its ticket sale system from manual to IT and has appointed more than 840 ticket sale agents. The MNA needs to upgrade its cash payment and remittance system as it is operating domestic and foreign flight schedules. The MNA has to suffer losses as it has to purchase new flights and/or hire flights as it has to keep abreast with other international airlines.