Business News
Lao Airlines signs agreement to buy two Airbus 320s
Aug 11, 2011, 3:47 GMT
Vientiane - Lao Airlines has signed an agreement with Europe's Airbus SAS to buy two A320 aircraft as part of plans to get listed on the stock market, media reports said Thursday.
Lao Airlines planning and cooperation department chief Noudeng Chanthaphasouk refused to reveal the price it had agreed to pay for the two planes, but confirmed that the government had provided financial support for the purchase, the Vientiane Times reported.
The first Airbus 320 is expected to be delivered in October, to be used to operate Lao Airlines' new Vientiane-Singapore route.
Noudeng said the purchase was part of the state-owned airline's preparations to get listed on the Lao Securities Exchange.
The airline currently operates propeller aircraft, including the French ATR and Chinese M60, on flights to Thailand, China, Cambodia and Vietnam.
'If we don't improve our business and buy more aircraft, the public won't see improvements in our company and they may not buy stock in the company,' Noudeng said.
Communist Laos' first bourse opened in January, with only two listed companies - EDL-Generation, which is controlled by the state-owned power company Electricite du Laos, and Banque Pour Le Commerce Exterieur Lao, a state-owned bank.
Lao Airlines will face increased competition at the end of the year, when the privately owned Phongsavanh Airlines begins international air services, the Vientiane Times said.
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