The Commercial Aircraft Corporation of China (Comac) has reportedly bid to take a majority stake in the flag carrier of Laos, as the state-owned Chinese aviation firm continues its push to expand its market in Southeast Asia.
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The deal – which is pending approval by the Lao authorities – would see Comac help Lao Airlines overhaul its operations and stem its losses in exchange for the carrier agreeing to use the Chinese company’s passenger jets, Vientiane Times quoted Prime Minister Sonexay Siphandone as saying on Monday.
Comac and Lao Airlines already signed a memorandum of understanding on a potential deal in October 2024, and an independent auditing firm has been hired to value Lao Airlines and examine its liabilities.
The Lao carrier also recently acquired its first C909 jet – a narrowbody Comac model for regional routes – through a lease agreement. The jet is now flying key domestic routes in Laos, with plans being made for it to begin flying on international routes between Laos and China.
The Lao government is “considering Comac’s proposal on a comprehensive joint venture, particularly its proposal to hold at least a 51 per cent stake”, Prime Minister Siphandone told the Lao National Assembly.
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The bid is just the latest move by Comac to expand its presence in Southeast Asia, as the Chinese firm strives to prove the reliability of its planes to Western regulators and ultimately position itself to compete with Airbus and Boeing in the international market.
Brian Yang Bo, an aviation industry veteran and consultant, said the Laos deal mirrored the strategy Comac used when selling its C909 jets to TransNusa – a budget airline in Indonesia.