Myanma Air to lease 10 Boeing jets from GECAS

SINGAPORE Mon Feb 10, 2014 7:40pm EST

A man prepares to fuel an ageing Myanma Airways airplane in the city of Myitkyina in northern Myanmar February 27, 2012. REUTERS/Staff

A man prepares to fuel an ageing Myanma Airways airplane in the city of Myitkyina in northern Myanmar February 27, 2012.

Credit: Reuters/Staff

SINGAPORE (Reuters) - Myanma Airways has agreed to lease 10 new Boeing (BA.N) 737 jets from GE Capital Aviation Services (GECAS), the world's biggest leasing company, in what appears to be the largest single fleet expansion in Myanmar.

State-run Myanma will work with GECAS to develop and upgrade its airline fleet and expand routes into key markets in the region, officials from Myanma Airways told a news conference on Tuesday as the Singapore Airshow kicks off.

Myanma currently flies only on local routes. Officials from Myanmar's government and Boeing were also present at the signing ceremony on Tuesday.

GECAS said the deal had a list price of $960 million and the aircraft will be delivered through 2020. Leasing companies rent aircraft to airlines in exchange for a monthly fee.

After years of isolation, Myanmar is seen as one of the last frontiers for aviation in Asia, with passenger numbers surging as new airlines spring up and foreign carriers rush in.

(Reporting by Anshuman Daga; Editing by Ed Davies)