Thailand and Myanmar in airline dog

[darnott@xxxxxxxxxxx]

[NOTE FROM DAVID ARNOTT: THE BURMESE ACTION SOUNDS 
WTO-ILLEGAL TO ME (AS ALSO, INCIDENTALLY, DOES THE UNFAIR 
TRADE ADVANTAGE GIVEN BY FORCED LABOUR).  ANY EXPERTS
OUT THERE WHO COULD  VENTURE AN OPINION?]

Thailand and Myanmar in airline dog-fight 

AFP, Bangkok, 18 November 1999.  A new disagreement niggled 
at volatile Thai-Myanmar relations Thursday after a dispute 
flared over profits and capacity on the Bangkok-Yangon shuttle 
route flown by both countries' airlines. 

Myanmar has threatened to bar some Thai Airways flights to its 
capital unless the carrier reduces capacity or hands over revenue 
on a route also served by Myanmar Airways International, sources
here said. 

Thailand sent a delegation to Yangon Thursday for three days of 
talks with Myanmar officials on the issue, a well-placed source told AFP. 

The disagreement arose after Myanmar reportedly rejected a written 
understanding signed between the airlines two years ago allowing 
Thai to raise passenger numbers into Yangon to 3,800 a week from
3,500. 

Myanmar has now told Thai it must lower its capacity to 2,500 a week 
or hand over 12 percent of the 16 million dollars in annual revenue on 
the route, the source said. 

"Myanmar said they may decide to cancel flights if they can't agree." 

A spokesman for the Myanmar government made no immediate comment. 

The Thai team, led by Civil Aviation Director-General Suwat Sitthiwongse 
and senior Thai Airways and economic officials, is expected to propose 
a new profit-sharing scheme for the route during the talks. 

Thai and Myanmar Airways operate two daily flights on the short hop 
between Bangkok and Yangon. 

Myanmar badly needs the foreign exchange earnings brought in by the 
few tourists that still visit the military-ruled country. 

Its economy is battling an investment drought brought on by the 
Asian  crisis and economic measures designed to punish alleged 
human rights violations. 

Relations between Thailand and Myanmar deteriorated sharply 
last month after a hostage siege at Myanmar's embassy here. 

Yangon authorities were furious that Thailand allowed five gunmen 
to escape and closed its border with Thailand. 
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