China Commercial Aircraft Corporation will acquire a 49% stake in the Lao Airlines.
ASEAN Headline News: The latest news from the official media of Laos states that the Chinese state-owned aircraft manufacturer - China Commercial Aircraft Corporation (COMAC) - will acquire 49% of the shares of the Lao National Airlines - Lao Airlines.
According to the report of the Vientiane Times on November 12th, a government report submitted by the Lao government to the country's parliament shows that the Lao government and the Chinese state-owned aircraft manufacturer COMAC have reached an agreement. The Lao government will retain 51% of the shares of Lao Airlines.
The report states that the negotiations between the Lao government and COMAC have ended, confirming the equity structure that allows the Lao government to continue holding a majority stake in this national airline.
It is reported that the cooperation with COMAC is part of the Lao government's broader efforts to reform state-owned enterprises and improve their operational efficiency. Previously, Lao state-owned enterprises have been in a state of losses for many years.
The Lao authorities and the Shanghai-based COMAC are jointly drafting a business improvement plan for Lao Airlines. Once completed, it will be submitted to the Lao government for approval.