The Chinese aircraft manufacturer Commercial Aircraft Corporation of China (Comac) is considering acquiring a majority stake in Lao Airlines, the national flag carrier of Laos. The state-owned newspaper Vientiane Times reported this, citing a statement by Laotian Prime Minister Sonexay Siphandone before the National Assembly. According to the report, the Laotian government is reviewing a proposal from China for a "comprehensive joint venture" in which Comac would hold at least 51 percent of the shares. Lao Airlines is one of four state-owned enterprises in Laos currently undergoing a reform phase.
Neither Lao Airlines nor Comac have yet commented on the reports. Comac's potential entry into Laos' national carrier follows the delivery of a Comac C909 regional jet to Lao Airlines at the end of March this year. Since then, the airline has been operating the aircraft on its domestic routes. This is part of Comac's strategy to gain a foothold in foreign markets and compete with established aircraft manufacturers Airbus and Boeing. The C909, formerly known as the ARJ21, is China's first mass-produced jet aircraft and entered service in 2016.
Since the beginning of last year, Comac has intensified its marketing efforts toward international regulators and airlines in order to compete globally with rivals Airbus, Boeing, and Embraer and ramp up production of its aircraft. While the narrow-body C919 currently flies only within China, the smaller C909 regional aircraft have already been sold to airlines in Indonesia, Vietnam, and Laos. An independent audit firm is currently assessing the total value of Lao Airlines as part of the partnership negotiations. Comac has requested that Lao Airlines' existing debt be excluded from the joint venture.