Lao Airlines takes off with fleet expansion
Lao Airlines takes off with fleet expansion
National carrier Lao Airlines expects to take delivery of two more ATR aircraft at the end of this year and early next year, as it expands services in both the domestic and regional markets.
The state-owned airline has signed a purchase agreement for two ATR 72-600s valued at US$46 million at the catalogue price. It expects to take delivery of the 74-seat aircraft at the end of this year and early in 2013, the company said last week.
The two new planes will be an addition to Lao Airlines' current fleet of 4 ATR 72-500s, and will enable the airline to increase flights on existing routes and fly to new destinations both in Laos and the region.
At present, Lao Airlines operates flights from Vientiane to Bokeo, Luang Namtha, Oudomxay, Luang Prabang, Xieng Khuang, Savannakhet and Pakxe, and to major cities in the region including Bangkok, Chiang Mai, Hanoi, Singapore, Kunming and Siem Reap.
Lao Airlines President Dr Somphone Duangdara said the company's decision to purchase the two new ATRs was aimed at modernising its services. The new planes would also save on fuel and operation costs.
The airline is facing strong business competition as the number of carriers in Laos and the region increases. Laos will also open up its airspace to overseas airlines after it joins the World Trade Organisation at the end of this year and the Asean Free Trade Area in 2015.
Lao Central Airlines launched a service earlier this year, which has forced Lao Airlines to improve its operations to protect its position in the domestic market. Korean Jin Air has also launched a Vientiane-Seoul flight to meet customer demand.
Lao Airlines has undergone rapid growth since taking delivery of its first two A320 jet aircraft at the end of last year and early this year. The company opened the Vientiane-Singapore sector using the jet aircraft earlier this year and launched charter flights to Japan and the Republic of Korea.
The airline is in discussions about the purchase of an Airbus A321 and A300 for use on direct flights to Myanmar, the Republic of Korea, and China's Guangzhou and Hong Kong.
The airline says it is considering selling shares on the Lao stock market, and that recent improvements will enable it to mobilise funding for business expansion. A precise timeframe for listing on the stock market was not available.
The ATR 72-600s will be equipped with a fully glassed cockpit and a new Giugiaro-designed cabin interior and will be powered by PW 127M engines.
vientiane times
