Laos has appointed a new committee set to reform the country’s troubled national airline.
Minister of Finance, Mr. Bounchom Oubonpaseuth, announced the appointment of the new Lao Airlines State Enterprise Reform Committee on Thursday at Wattay International Airport.
The ministry appointed Deputy Minister of Finance, Mr. Phouthanouphet Xaysombath, as the head of the new committee and Deputy Director General of the Ministry of Public Works and Transport, Mr. Ngampasong Muongmany, as deputy.
Lao Airlines President, Mr. Khamla Phommavanh, and Deputy of SOE Management, Development and Insurance Department, Ms. Sengaloun Inmixay, will also join the committee.
Minister Bounchom said that the committee will work to reform Lao Airlines and will also serve as the new board of directors.
The National Assembly’s recent Budget Resolution states that enterprises that utilize state investment funds (state enterprises), namely Electricite du Laos, EDL-Generation Public Company, Lao Cement Company, Lao State Fuel Enterprise, and Lao Airlines, have consistently reported a lack of liquidity and operated at a loss for several years.
Laos has seen the sale of shares in its state enterprises to local investors this year as part of reforms expected to unburden the state amid economic woes.
Lao Logistics State Enterprise was the most recent state enterprise to be sold, following the sale of the country’s postal enterprise and two state banks.
A reform committee has also been set up to overhaul the country’s debt-ridden power company, Electricité du Laos (EDL), which authorities have admitted is seeing massive losses.