Loading

Lao Airlines outlook brightens following North Asia expansion and domestic reductions

Analysis

Lao Airlines has rapidly expanded its international operation over the past few years with a focus on North Asia, particularly China. Six international destinations have been launched since late 2012, including four in China and two in South Korea.

Several unprofitable domestic routes have been handed over to a smaller government owned airline, Lao Skyway, enabling Lao Airlines to phase out smaller turboprops. Lao Airlines has expanded its ATR 72 fleet by three aircraft since 2011 while adding four two class A320s.

The new focus on North Asia along with a reduced focus on the domestic market have improved Lao Airlines' profitability and outlook. However it faces increased competition on international routes within Southeast Asia and will be impacted as Thai AirAsia launches services to Laos, becoming the first LCC in the increasingly popular Lao tourist destination of Luang Prabang.

Read More

This CAPA Analysis Report is 2,925 words.

You must log in to read the rest of this article.

Got an account? Log In

Create a CAPA Account

Get a taste of our expert analysis and research publications by signing up to CAPA Content Lite for free, or unlock full access with CAPA Membership.

InclusionsContent Lite UserCAPA Member
News
Non-Premium Analysis
Premium Analysis
Data Centre
Selected Research Publications

Want More Analysis Like This?

CAPA Membership provides access to all news and analysis on the site, along with access to many areas of our comprehensive databases and toolsets.
Find Out More