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SilkAir Part 1: Luang Prabang, Vientiane launch positions SIA to benefit from growth in Laos tourism

Analysis

Singapore Airlines' full service regional subsidiary SilkAir has confirmed plans to launch Luang Prabang and Vientiane in Laos in late Oct-2016. SIA will become only the eighth foreign airline group to serve Laos, which has a small but fast-growing international market.

SilkAir's new Singapore-Vientiane-Luang Prabang-Singapore circular route is strategically important for the SIA Group as Laos is the only Southeast Asian and ASEAN country not yet served by the group. AirAsia is now the only airline group serving all the 10 countries that make up ASEAN.

Enhancing regional connectivity is an important component of the new SIA Group strategy as it aims to differentiate itself from competitors and grow, despite intensifying competition. The group's Southeast Asian network will exceed 40 destinations by the end of 2016. In 2016 SIA is also expanding its network in China and India, two other strategically important markets, to 23 and 15 destinations respectively.

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