In a move that could lead to its privatisation, Lao Airlines, the tiny national carrier of Laos, has launched the most aggressive revamp in its history.
Earlier this year the carrier not only changed its name from the previous Lao Aviation, but also took an Airbus A320 on lease from Singapore Aircraft Leasing Enterprise. The aircraft, which is the only jet in Lao's its fleet, is crewed by Vietnam Airlines pilots, although Lao plans to have its own flightcrew within the year. The small carrier has also signed a deal with Vietnam Airlines to provide maintenance support for the A320.
The developments come as part of a modernisation plan aimed at boosting tourism to the poor, landlocked country.
Airline president Somphone Douangdara says the addition of the A320 should also help the carrier increase its market share on routes to and from Laos. At present the country's market is dominated by airlines from neighbouring Thailand.
Last year, Lao Airlines carried 200,000 passengers, of which 60,000 were on international routes serving points in Cambodia, China, Thailand and Vietnam. It expects to carry 400,000 passengers next year, when it hopes revenues will double from last year's $14 million.
In 2002, the Laos government hired Air France Consulting to advise on a revamp. Its international fleet now comprises the A320 and two ATR-72 turboprops, which are also used on the carrier's domestic routes.
Its domestic fleet is composed of Chinese Harbin Y-12 and Xian Y-7 turboprops, although the Y-7s are scheduled to be phased out, and the Y-12s will be replaced if suitable aircraft can be found.
Guy Le Sann, who is advising the carrier's management team, says Lao Airlines plans to add a second A320-family aircraft in time for the winter 2005 operating season. A third is planned for winter 2007.
Le Sann, who headed the Air France Consulting team at the carrier last year and who now works directly for the airline, says services to Hong Kong and Singapore should begin by winter 2005. Services to Kuala Lumpur in Malaysia are also under consideration.
Meanwhile, the government is seeking foreign investors to take up to a 60% stake in the national carrier, possibly before the end of this year. Le Sann says the plans call for 40-60% to be sold off in a deal that will include management rights. n
NICHOLAS LONIDES VIENTIANE
Source: Airline Business
