Lao Airlines has canceled flights between Vientiane Capital and Oudomxay province owing to decreasing number of passengers on the route.
Lao Airlines announced on social media on Tuesday that the airline will stop flying between Vientiane-Oudomxay from October 5. A source from Lao Airlines says that operations on the route were impacted by Laos-China Railway’s operations to northern Laos, particularly, Oudomxay.
Due to the current economic climate and currency rate variations, the demand for flight travel to Oudomxay has declined by 50%, leaving the airline with a liquidity imbalance in terms of income and expenditure. The source also pointed out that while the income from flight operations was in LAK, the airline expenditure was in USD.
Lao Airlines also informs that fights to other northern towns like Luang Prabang and Luang Namtha that now have connectivity with Laos-China train service, from Vientiane, still see a steady stream of passengers. The last flight from Vientiane to Oudomxay was on Monday.
Laos appointed a new committee set to reform the country’s troubled national airline in August.