China steps up global aviation expansion as Comac bids for Laos carrier
Laos’ flag carrier would reportedly agree to use Comac jets as part of the deal, as the Chinese aviation firm continues its push into Southeast Asia
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.
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 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.
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.