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The planes are not that small, there are not the small planes, seem to be similar size to what AirAsia use. I think they are better than the trains, its not just bumpy but they sway from side to side. The flights are so short anyway not like the trains. Same planes on all routes.

I see AirBagan have some jet engines, not sure if thats their whole fleet.

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re flying..note the Mandalay Airasia shuttle has stopped some time ago....so Mandalay out to Mandalay airport by share taxi (collect at your hotel door) is 4000 or 5000 Kyat. Taxi at Bagan end is 7000+ Kyat.
I don't think there are many jet planes on any domestic routes...vast majority are prop, but large planes, unless you are flying somewhere remoter..
Mandalay to Bagan is the one route that you are better off with bus/van...takes around 4.5 hours...flying - takes 1 hour from Mandalay out to airport,1 hr check-in, 30min+ flight...so road isn't much longer, but a 1/10 the price.
Flying is far more comfortable than Myanmar trains...if you are concerned about comfort - forget trains...okay for the Myanmar train 'experience' but not for comfortable rides...especially overnight.

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[I see AirBagan have some jet engines,]
Two semi derelict, not airworthy A300 parked up at Yangon for years. Their ATR schedule is now operated by their sister company,Asian Wings
Air Mandalay has newish Embraer's and Myanmar National new 737's and Golden a couple of A320 but you are unlikely to see them on the Mandalay/Bagan route ,methinks...
SS

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In response to #3

in July, 2014 so I do not remember how much we paid, our group have 8 persons so we shared cost. You can ask your hotel about price

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