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Laos market poised for major shake-up as Lao Airlines doubles capacity following delivery of A320s

31st August, 2011

Laos is poised for unprecedented change as flag carrier Laos Airlines prepares to launch new international routes and up-gauge several existing routes following delivery of two new A320s. As a result, total capacity at Lao Airlines will almost double in 4Q2011 and capacity in the entire Lao market will surge by 50%. For most countries the impact from two additional narrowbodies would be just a drop in the bucket, but for the smallest market in ASEAN and the region’s smallest flag carrier there are huge ramifications. [3127 words]

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This report contains the following subheadings:

  • Lao Airlines A320s to be used on Singapore, Kunming, Hanoi and Ho Chi Minh services 
  • A320s to allow Lao Airlines to maintain leadership position when new Luang Prabang airport opens
  • Prospect of new local competition for Lao Airlines
  • A320s capacity will be challenging to fill
  • Implications for ASEAN
  • Lao Airlines domestic capacity to surge by 87%
  • Lao Airlines' international market share to increase from 39% to 53%
  • Lao Airlines' share of the key Vientiane-Bangkok route to increase from 32% to 49%
  • Singapore becomes new transit point for long-haul passengers heading to Laos
  • Laos-China market has big potential

This report contains the following charts and tables:

  • Current capacity to/from/within Laos by carrier (seats per week, 29-Aug-2011 to 4-Sep-2011)
  • Planned capacity to/from/within Laos by carrier for Nov-2011 (seats per week, 7-Nov-2011 to 13-Nov 2011)
  • Laos Airlines’ current route network
  • ASEAN's 10 aviation markets
  • Lao Airlines’ current fleet
  • Capacity from Bangkok to Vientiane (one-way seats per week) for 4-Jul-11 to 19-Feb-12
  • Capacity from Vientiane to Hanoi (seats per week, one way) for 4-Jul-11 to 19-Feb-12