Lao Central Airlines (LCA), a privately owned Laotian carrier staffed mostly by Thais, has an ambitious plan that may supersede the position of the flag carrier, state-owned Lao Airlines.
Wholly owned by Laos's influential Phongsavanh business group, LCA is embarking on a major expansion to strengthen its initial target market _ Laos-Thailand _ and extend its reach to various key Asean cities.
On the radar screen for the longer term is the debut of intercontinental flights, to Europe, from LCA's Vientiane hub with the acquisition of Boeing 777 long-range wide-body jets, LCA chief executive Savanhphone Phongsavanh told the Bangkok Post.
Setting the stage for the aggressive regional expansion of LCA, which only took to the skies in May 2012, is the roll-in of a fleet of Russian-made Sukhoi Superjet 100s that commenced last month.
The Vientiane-based full-service airline signed a contract with Sukhoi Civil Aircraft Co in March 2011 for three single-aisle SSJ100s in a two-class configuration with 93 seats, with an option for an additional six jets.
LCA received the first SSJ100 on Feb 15, making it the first operator of such aircraft in Southeast Asia.
It has also set firm dates for taking delivery of the second and third SSJ100s, in May and August this year.
With the service entry of the three SSJ100s, which are joining LCA's original fleet consisting of two old Boeing 737-400s, the airline intends to gradually launch more than seven international routes in the region.
Over the next few months, LCA will begin regular service from Khon Kaen to Luang Prabang, the second Thailand-Laos route after Bangkok-Vientiane, LCA's first and only international route, said Mrs Savanhphone, the daughter of Laotian tycoon Od Phongsavanh.
Six other international routes in the pipeline are Vientiane to Hanoi, Ho Chi Minh City, Phnom Penh, Siem Reap, Kuala Lumpur, Singapore and Kunming.
LCA is keen to start flying Bangkok-Luang Prabang, a route dominated by Bangkok Airways, but a seat quota under the Thailand-Laos air traffic agreement has already been used up.
Mrs Savanhphone, in her early thirties, did not give a specific launch time frame for every route, though she did say all the Asean-bound routes should be in place by the end of 2015 when the Asean Economic Community takes effect.
She voiced optimism that the AEC would open up the seat quota for the Bangkok-Luang Prabang route.
In the short-to-medium term, LCA will look at acquiring Boeing 737-800 jets to allow longer routes with up to five-hour flying times from Vientiane.
Thailand has become a focus for LCA's sales campaign and publicity, as well as a market catchment area. The carrier recently appointed Thai Star Air Co, a leading Bangkok-based travel agent, as its general sales agent.
LCA operates nine flights a week on the Bangkok-Vientiane route. Plans call for deploying the SSJ100 on the route on March 18, supplementing the service of the two B737-400s.
To quickly capture the market, LCA has come up with promotional fares starting at 3,800 baht round-trip for Bangkok-Vientiane, a sharp discount to the 7,500 baht posted by Lao Airlines and Thai Airways International.
The only other route now operated by LCA is the domestic Vientiane-Luang Prabang with a daily frequency.
Up to 70% of LCA's 100-strong workforce is Thai, including managerial staff, pilots and cabin attendants, as Laos's aviation industry is still in its infancy, LCA officials said.
Mrs Savanhphone said her family, which runs a wide range of businesses in banking, international trade and petroleum, has no intention of seeking an equity partner for LCA.
"That's how we run our business and LCA does not need outside funding," she said.
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