Lao Airlines (QV, Vientiane) is set for an overhaul after the Laotian minister of finance, Bounchom Ubonpaseuth, appointed a reform committee to examine restructuring the airline.
Announced in Vientiane on Thursday, August 18, the ten-person team is tasked with ending years of financial losses at the state-owned carrier and will map out a plan that addresses systemic financial, operational, and HR concerns. Lao Airlines is a state-owned enterprise supervised by the Ministry of Public Works and Transport.
Flagging reforms in June, Laotian Prime Minister Phankham Viphavanh said embezzlement and poor management were the top reasons why so many Laotian state-owned enterprises kept losing money. At the same time, Viphavanh said the government would retain a majority interest in Lao Airlines.
According to a finance ministry statement, the Lao Aviation State Enterprise reform committee consists of ten members, including two female members. Deputy Minister of Finance Phouthanouphet Xaysombath will chair the committee that includes Lao Airlines President Khamla Phommavanh. The committee will make several reform recommendations to the government in a bid to improve the airline's performance.
Based at Vientiane Wattay International Airport, Lao Airlines operates a fleet of seven ATR72-600s and four A320-200s. It flies to six domestic and seven international destinations in Thailand, Vietnam, South Korea, and China.
