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Wednesday, November 12, 2025
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Lao Government Keeps Majority in Lao Airlines as COMAC Takes 49% Stake

This Week

On 10 November, the Lao government confirmed an agreement with the Chinese state-owned aircraft manufacturer, Commercial Aircraft Corporation of China (COMAC). Under the deal, COMAC will acquire a 49 percent stake in Lao Airlines while the government retains a 51 percent majority.

The deal is part of broader efforts to reform state-owned enterprises and improve operational efficiency after years of financial losses.

Negotiations initially involved COMAC seeking a majority stake, but the Lao government opted to renegotiate to retain control. An independent audit and valuation of Lao Airlines’ assets is currently underway to finalize the agreement.

As part of the partnership, Lao authorities and COMAC are drafting a business improvement plan for the airline, which will be submitted to the government for approval. 

Officials said the joint venture aims to strengthen operational capacity, modernize the fleet, and ensure sustainable growth.

The collaboration builds on a memorandum of understanding (MoU) signed in October 2024 and follows the addition of COMAC C919 aircraft to Lao Airlines’ fleet in April 2025 under a lease agreement. 

The airline now operates 13 aircraft, including four Airbus A320-214s, two COMAC C919s, three ATR 72-600s, and four ATR 72-500s.

Discussions over COMAC’s stake in Lao Airlines have been ongoing since 2024. 

In May, the Chinese company requested a minimum 51 percent share through a joint venture, with proposals to exclude existing debt from the deal. Lawmakers have debated concerns over national control versus the benefits of foreign expertise, with some suggesting a phased ownership model. 

The partnership also involves integrating COMAC aircraft into Lao Airlines’ operations, a process that began in April 2025 with the C909 jet, supported by COMAC teams in training, maintenance, and operational planning.

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