Mizzima News (www.mizzima.com)
October 25, 2007 - Air Bagan Limited has announced that it is temporarily suspending flights to Singapore starting November due to sanctions targeted at the airlines owned by Burmese business tycoon Tayza.
A letter signed by the airline's sales and marketing manager today said following the imposition of sanctions against the airline, Banks in Singapore have notified that "they will no longer deal with us for the time being."
"As such we are now facing some major hurdles that need to be dealt with in the next few months. In view of the above… we will temporarily be suspending operations to Singapore," the letter said.
"Our last flight to Singapore will be on November 4, 2007," the letter added.
"We are not sure when we can resume flights. And we don't know how long it will take to recover," an official of Air Bagan office in Rangoon told Mizzima,
The suspension badly affects the company as it has to refund passengers, who have booked tickets, the official added.
Though Air Bagan will suspend its flights to Singapore, the airline said it will continue to operate domestic flights.
"We are aware that the Singapore flights are impacted by sanctions but we will continue with domestic flights," said another official of the airline.
Air Bagan Limited, a private company owned by Tayza, son-in-law of Burmese junta supremo Snr Gen than Shwe, is the first to be affected by sanctions imposed against the junta for its brutal crackdown on peaceful protestors last month.
However, the letter said, "We will resume our flights once we have overcome the obstacles."
Meanwhile, sources said Tayza held a company meeting on Wednesday in Mandalay and admitted facing severe financial crisis."He [Tayza] said he was planning to sell two Air Bus aircrafts in order to stay afloat," the source added.