On the 18th July of 2007, the chairman of Htoo Group Of Companies announced to establish a football club. So, for the 2007-2008 season, the company took over a first division club, Viva FC and changed the name to Air Bagan FC and competed in the 2007-2008 season.

Air Bagan FC became champions of first division in their first year. After being promoted to the top division, Air Bagan FC competed in the 2008-2009 season and finished in the top half of the table.