Laos aviation market poised for more rapid growth after doubling in size in only 15 months

The Laos aviation market, which has quietly more than doubled in size over the last 15 months, is poised for more rapid growth in 2013 as both of the country's small carriers continue to expand their fleets and networks.

Government-owned Lao Airlines, which added two A320s in 4Q2011 and a third A320 in 4Q2012, plans to take a fourth A320 and add two ATR 72-600s in 2013. Meanwhile, privately-owned start-up Lao Central Airlines plans to add three Sukhoi Superjet 100s in 2013, with the first aircraft due to be delivered in the coming weeks, to supplement its fleet of two Boeing 737-400s.

Laos is also starting to attract increasing interest from foreign carriers as the relatively unpopulated and rural Southeast Asian country gradually emerges as a popular tourist destination. The upcoming opening of a new terminal at the historical town of Luang Prabang, where the runway was recently extended to accommodate jets, is expected to attract several international carriers. Only two foreign carriers now serve Luang Prabang and only six foreign carriers serve Laos overall, accounting for slightly less than 50% of the country's total international capacity.