Lao Airlines prepares for AEC challenges
Lao Airlines prepares for AEC challenges
Lao Airlines is continuing to upgrade its aircraft fleet, aiming to strengthen its business capacity ahead of establishment of the Asean Economic Community.
The national flag carrier received the latest aircraft last weekend at an official ceremony held at Watt ay International Airport in Vientiane.
Lao Airlines President Mr Somphone Duangdara, a number of a senior officials and media attended the hand over ceremony of the new ATR 720-600.
The airline expects to receive another US$20 million worth of turboprop aircraft at the end of this year, which will allow the state owned enterprise to increase flights to the provinces and foreign destinations amid rising business competition.
Lao Airlines Vice President Mr Somsamay Visounnalath said the decision by the state owned company to acquire more aircraft was part of its efforts to ready the airline in the face of stronger business competition after the Asean Economic Community is formed in 2015.
Policy makers believe that the establishment of the Asean Economic Community will make Asean a single market and production base, in which goods and services will be allowed to flow freely within the region. Air travel is one of the services which will be freed up.
Asean countries have agreed to open their skies to each other, meaning Lao Airlines can fly to any destination within Asean while at the same time other airlines in the region can also fly to Laos, which will create strong business competition among domestic airlines.
Mr Somsamay said as part of its efforts to strengthen business capacity ahead of regional economic integration, Lao Airlines has employed experts from Australia to help the company improve technical aspects of its operations so that they meet with international standards.
According to a report from Lao Airlines, over the past 25 years, the state owned company has seen remarkable growth. At present, the company owns 15 aircraft; four of them are Airbus A320s, which can accommodate 180 passengers.
The company plans to purchase more jet aircraft as it moves to open flights to more long distance destinations. The company is already operating flights to Singapore, Chinese cities and South Korea.
As part of efforts to transform the company into an international corporation, Lao Airlines has a strategy to list itself on the Lao Security Exchange but cannot confirm when it will be ready for listing. At present, the company is revising and improving its business management.
One of the challenges that must be addressed before the airline can become a public company is that it must demonstrate that it operates transparently so investors can feel confident in purchasing shares in the company. The company will also need to disclose all of its business operations to shareholders.
vientiane times
