Korean to build new airline in Laos

Korean company keen to establish airline in Laos

A South Korean company has expressed interest in establishing an aviation business in Laos to offer direct flights from Vientiane to Seoul and other destinations in Asia , according to a senior official from the Ministry of Public Works and Transport.

Director General of the Lao Civil Aviation Department, Mr Yakua Lopangkao said on Friday the Booyoung Company has informed the government it would like to open an airline business in Laos .

“The company's representatives met with us three weeks ago to discuss the possibility of establishing an aviation company in Laos . However, they haven't provided us with an economic feasibility study,” he told Vientiane Times.

He said the government had urged the relevant sectors, including the ministries of Public Works and Transport and Planning and Investment, to facilitate the Korean company's bid to establish an airline in Laos...more>>

The government believes a new airline would enhance Laos ' connectivity with the region, as well as the rest of the world, he said.

There are currently only two aviation companies in Laos . Lao Airlines only offers international flights to Thailand , Vietnam , Cambodia and China , as well as domestic flight routes to major Lao cities. The other company, Lao Air, offers only a few domestic flight services.

Mr Yakua said the government has a policy to encourage foreign investment in the aviation sector.

“The introduction of a new airline in Laos would not be detrimental to current airline businesses because we would encourage the new company to offer flights to destinations not covered by the current airliners,” he said.

Manager of Booyoung Lao Company, Mr Khonesavanh Sengthavy confirmed the company is interested in establishing an aviation company in Laos to be named Lao-Booyoung Airlines, adding the company is now preparing an economic feasibility study.

He said the company would ideally like to commence operations this year, initially offering a Vientiane-Seoul-Hong Kong flight. However, he was unable to confirm that this would be the case.

He said the company would initially use three, 150 seat Airbus 320s.

Mr Khonesavanh said the company believes there is a growing demand for direct flights between Asian cities and Vientiane where investment is increasing rapidly.

He said Korean businesses are interested in investing in hydropower development and mining projects in Laos .

The South Korean government has a policy to support the development of clean energy sources such as hydropower to address climate change.

The Lao National Assembly has approved several new investment promotions, including offering foreign investors who spend more than 2.5 billion kip in Laos the privilege of owning residential land use rights.


By Times Reporters

Posted by samakomlao on 7:56 PM. Filed under development, headlines, Laos . You can follow any responses to this entry through the RSS 2.0. Feel free to leave a response