The domestic airlines Air Mandalay on Friday denied rumours doing the rounds that it was being taken over by Air Bagan.  Air Mandalay is into international operations between Rangoon and Chiang Mai in Thailand.

Following the temporary suspension of Air Mandalay’s Rangoon-Chiang Mai weekly flights, rumours have spread among the business community in Burma that Air Bagan is preparing to take over Air Mandalay.

But a public relations officer of the Air Mandalay Company denied the rumours saying, “It is not true and we are not aware of any such development.  These are rumours.”

Air Bagan officials were not immediately available for comment.

The official said, Air Mandalay is currently operating normal domestic flights, while its international flight Rangoon-Chiang Mai sector will resume in November.

In May, a decrease in the number of passengers forced Air Mandalay to temporarily suspend its international flights. While it was scheduled to resume in August, with little or no passengers available it was further forced to postpone it till November.

Similarly, Air Bagan owned by Burmese business tycoon Tayza, who is close to the ruling junta supremo Snr. Gen. Than Shwe, has also been forced to suspend the Rangoon-Bangkok and Rangoon-Singapore flights due to sharp fall in passengers, an airline ticketing agency in Rangoon said.