COMAC acquires a 49% stake in the state-owned carrier Lao Airlines

The government of Laos confirmed on 10 November that it has reached an agreement for China’s COMAC to acquire a 49% stake in Lao Airlines, with the state retaining a 51% share.

The transaction is part of a broader effort to overhaul state-owned enterprises and address persistent financial losses at the flag carrier. Authorities and COMAC are currently conducting an independent audit and asset evaluation to finalize the share purchase.

Initial negotiations saw COMAC seeking a majority stake, but the Laotian government opted to renegotiate terms to maintain national control. Both parties are drafting a business improvement plan for Lao Airlines, which will require government approval.

The joint venture intends to enhance operational capacity, modernize the fleet, and pursue sustainable growth. This collaboration builds on a memorandum of understanding signed in October and involves the phased introduction of COMAC C909 aircraft under a leasing arrangement signed in April.

Lao Airlines currently operates 13 aircraft including four Airbus A320s, two COMAC C909s, three ATR 72-600s, and four ATR 72-500s. COMAC’s participation has included support for crew training, maintenance, and operational planning as part of the C909 integration.

The planemaker initially requested a 51% holding and proposed the exclusion of existing debts from the agreement. The Laotian parliament debated the issue, with some lawmakers advocating a phased ownership model to balance national interests with access to foreign expertise.

COMAC has been seeking to expand the operation of its commercial aircraft in countries neighboring China as a way to gain experience in support and after-sales service, with an eye on new global contracts.

The expectation is that the joint venture will include the C919 jet in the future, the flagship of the Chinese state-owned company, which does not yet have a foreign operator.

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Ricardo Meier

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