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Lao Airlines to purchase two Airbus aircraft
Lao Airlines signed a purchase agreement with the Airbus-An Eads Company of France for two brand new A320 aircraft in Vientiane on Friday .
“The first aircraft will be in Laos by the end of October and the second one will arrive in November this year,” said Lao Airlines representative Mr Sengpraseuth Mathouchanh at the signing ceremony.
Airbus Company representative Mr Jean-Francois Laval said “This is the first time that Airbus has sold our aircraft in Laos. Lao Airlines are a new customer for our company and it is a new country customer as well. So far we have 330 customers and more than 7,600 aircraft have been delivered or sold.”
The purchase agreement followed the US$71 million loan agreement signed on Tuesday between the Banque pour le Commerce Exterieur Lao Public (BCEL) and Lao Airlines. The bank decided to partially finance the airline' purchase of the two new ai rcraft to expand its business amid growing competition in the aviation market.
The Bank of Lao PDR will provide an additional US$20 million to the national airline to complete the US$91 million acquisition to increase the state owned enterprise's capacity to offer more flights.
BCEL will charge Lao Airlines a 6.5 percent interest rate per annum with the terms of repayment of the loan and interest extending until 2019.
Lao Airlines also signed a memorandum of understanding with Lao-Viet Insurance to underwrite the new aircraft.
The airline will initially use the two 142-seat airbuses for the recently announced Vientiane-Singapore route.
Lao Airlines Administration and Planning Director Mr Noudeng Chanthaphasouk said “The first flight will take place on November 1.”
The decision of the company and the Lao government to purchase the aircraft was based on a thorough analysis of the business potential and increasing customer demand. The two new aircraft will help Lao Air lines to provide better services to more countries.
“We may use the new aircraft to fly between Vientiane and China in the future,” Mr Noudeng said.
The purchase is an important step for Lao Airlines and its growth as at present it owns only propeller aircraft. The airline made the purchase following increased demand for flights from tourists and government officials. It is part of a project to improve and expand Lao Airlines, supported by various organisations.
Lao Airlines now has eight aircraft - four MA60 and four ATR72-500 - which fly on domestic and international routes.
The airline offers flights between Vientiane and Luang Prabang, Xieng Khuang, Oudomxay, Luang Namtha, Bokeo, Savannakhet and Champassak provinces. International destinations include Cambodia, China, Thailand and Vietnam.
Another local operator Lao Central Airlines Public Company, had initially hoped to make its inaugural flight next month or in October. It will commence initial operations with two 150-seater Boeing 737-400s, which were purchased recently.
At first it expects to operate flights from Laos to Thailand, and then Vietnam, China and Cambodia. After that, it will consider offering flight services to all Asean countries.
vientiane times
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