Myanmar Balloon sector review underway

The Myanmar Department of Civil Aviation is planning a third-party assessment of the ballooning industry in response to concerns over a decision to allow hot-air balloons from multiple operators to fly in Bagan without radio communication equipment.

On December 31, 15 pilots from Balloons Over Bagan responded to the DCA decision by signing a petition stating that they “believe that pilot to pilot communication on licensed radios is an absolute minimum for the continued aerial safety of Bagan”.

The Balloons Over Bagan pilots said they believe the lack of communications equipment “would constitute an unnecessary risk to the lives of passengers and pilots alike, irrespective of which company” they fly with.

In December, the DCA distributed an advisory circular granting approval for multiple companies to operate in the same area. Rather than require balloons to have radio equipment so that they communicate with each other, the DCA ruled that safety could be maintained based on visual contact but with a limit on the number of balloons. The advisory runs through to March 31.

Both the DCA and Oriental Ballooning, which launched its first flights in Bagan on January 1, have rejected suggestions that safety could be at risk.

Brett Melzer from Balloons Over Bagan told The Myanmar Times last week that a constructive meeting with DCA officials earlier this month left him feeling “a lot more positive” about not only the safety concerns but also the future direction of the industry.

“It seems to me [the DCA is] moving forward with a third-party assessment that will look at [a range of] issues, including communication, legislation and the implications of having multiple operators in the same area,” he said.

“That report should be in the public domain. What we’re asking for is a totally transparent process.”

Founded in 1999, Balloons Over Bagan has been the country’s only commercial ballooning company for more than a decade. Myanmar’s tourism boom has encouraged a number of new operators to set up, however, not only in Bagan but also in Mandalay and Inle Lake. Four companies are likely to be flying by late 2014.

Mr Melzer said the radio communication issue is symptomatic of the sector “opening up quickly and suddenly”.

“Bagan is a congested, sensitive and restricted area and we’re all flying together,” he said. “Our point is very much that safety has to be paramount. And one of the key aspects of safety is to ensure that all operators have correct and adequate communication between themselves in the air and that all licences and paperwork … are legal.”

DCA deputy director general U Win Swe Tun said he was absolutely confident that the decision to allow balloons to fly in Bagan without radio contact did not compromise safety.

“We never grant licences without doing an assessment. We did the assessments and we allowed them to operate until March 31 with a maximum 20 balloons in one destination,” he said.

“During this period, we will study how we should work in the coming season with a third-party assessment team from the UK.

“I think these companies should cooperate and share the market rather than trying to dominate the market alone. As a regulator, if things are not going well then we can regulate accordingly.”

The issue should be resolved by the end of March, when the two companies hope to have the radios installed. While they have agreed on a model to import so their pilots can communicate and the DCA has provided letters of recommendation to import the devices, it is yet to provide a common radio frequency.

Oriental Ballooning sales manager Daw Ni Ni Khaing said she does not believe the lack of devices will pose any threat to passenger safety in the coming months.

“It will take some time to get the [equipment] and until then the pilots will contact each other visually,” Daw Ni Ni Khaing said. “Our British pilots are holding UK commercial balloon pilot licences and they are very experienced.”

The company was established by Amata Group in 2013 and received its Air Operation Certificate from the DCA in November, following a number of test flights the previous month. It began commercial flights in Mandalay on November 21.

Yangon resident Ma Hnin said she was pleased with the professionalism of Oriental Ballooning staff when she flew with them at Bagan in early January.

“Based on what I saw I don’t think [the lack of radio communication] is a major issue,” she said. “It seems like this could be a case of one existing company not wanting a new one to compete against them at the same destination.”

However, Balloons Over Bagan insists its opposition to the DCA circular is not designed to stifle competition.

“What we’re pushing hard for is that safety takes precedence for every commercial operator,” Mr Melzer said. “We’re all businesspeople and if we’re not regulated there’s a tendency to push the limits. That’s why we need limits, particularly in aviation.”

via – Myanmar Times.