Yangon Airways developed a dubious reputation when reports surfaced that it was an ally of the United Wa State Army (a separatist militia involved in the Internal conflict in Burma) and as such actively involved in drug trafficking, which prompted the US Government to have sanctions placed on the airline under the on 13 November 2008. On December 3, 2010, Yangon Airways had to suspend all flight operations after having its commercial transport license had been withdrawn by the . The Irrawaddy claimed this happened due to the affiliation of the airline with the separatists,
Destinations
Yangon Airways operated scheduled flights to the following dometic destinations: