Post by : Jyoti Gupta

Photo:REUTERS

The Lao government is thinking about letting a Chinese company, COMAC (Commercial Aircraft Corporation of China, Ltd.), buy a big part of Lao Airlines — more than 50%. This is part of the government’s plan to fix and improve some of its major state-owned companies, which have been losing money for many years.

The Prime Minister, Sonexay Siphandone, told the National Assembly that Lao Airlines is one of four important companies currently being reformed. The other three are Electricite Du Laos , the Lao State Fuel Company, and Nayobay Bank.

COMAC and Lao Airlines already signed an agreement last year in October 2024 to start working together. Now, COMAC wants to own at least 51% of Lao Airlines. However, they also asked not to take on any of Lao Airlines’ current debt as part of the deal.

This request caused disagreement. A National Assembly member from Vientiane, Valy Vetsaphong, said she disagrees with the idea. She thinks the debt should not be left out of the deal. She also said that instead of selling most of the company, the government should hire better leaders or a new CEO to help fix Lao Airlines. She believes no foreign company should control a national airline which is important for the country.

But another member of the Assembly supports the idea. They said that maybe Laos can sell more shares now, and later, within an agreed time, buy back enough shares to have control again. This way, Laos can still benefit from foreign experience and training.

COMAC also wants Lao Airlines to use more of their airplanes. Lao Airlines already leased a COMAC C909 jet earlier this year. It has 90 seats and is flying on domestic routes between Vientiane, Pakxe, and Savannakhet. The airline plans to expand to more destinations, especially in China.

COMAC is also helping Lao Airlines follow international safety rules and provide better service. Lao Airlines currently flies to 10 countries and 7 cities within Laos. It also runs special flights to places like China and South Korea. The airline was founded in 1976 and works with over 30 other airlines through sharing agreements.

This move by COMAC is part of its bigger plan to grow its business in Southeast Asia.