Lao Central Airlines

Lao Central Airlines was a private Lao airline headquartered in Vientiane. It was established in 2010 after Phongsavanh Airlines Public Company took control of Lao Capricorn Air Company, and it became part of the wider Phongsavanh Group, a Lao business group with interests including banking, trading, hospitality, telecommunications, timber, and security-related services. The airline was associated with Od Phongsavanh, who also owned Phongsavanh Bank. The carrier initially operated under the name Phongsavanh Airlines. In 2012, it was rebranded as Lao Central Airlines. The change was intended to present the carrier more clearly as a Lao-owned airline in international markets, while also separating its public-facing airline identity from the Phongsavanh name used elsewhere in the group. Lao Central positioned itself as offering both premium and budget seating, seeking to serve different categories of passengers in the relatively small Lao aviation market. The airline was based at Vientiane's Wattayyaithong Village in Sikhottabong District and used Vientiane as its principal base. Luang Prabang served as another Lao location in its network. During its active period, the airline operated services between Vientiane and Luang Prabang and international services to Bangkok. It was described as the second-largest Lao airline operator by fleet size, although it remained a comparatively small regional carrier. To support its operations and management systems, Lao Central Airlines engaged PricewaterhouseCoopers for management consultancy services. The stated purpose was to help the airline conform to international aviation standards. The carrier also pursued an expansion plan based around two Sukhoi Superjet 100 aircraft, with prospective services announced for destinations including Luang Prabang, Bangkok, Hanoi, Phnom Penh, Naypyidaw, Kuala Lumpur, and other regional cities. Operational difficulties interrupted that plan. Bangkok services were cancelled in December 2013 amid political unrest in Thailand. Services to Luang Prabang were suspended in July 2014 while the airline underwent restructuring. The company subsequently indicated that it might resume operations under new ownership in mid-2015. However, in December 2014, the two Sukhoi Superjet 100 aircraft associated with the airline were reported to be transferred to the Russian Federation Presidential Office. That transfer cast doubt on the proposed restart. No confirmed resumption had been announced by October 2016, and the airline is generally treated as having ceased operations in 2014.

Lao Central Airlines developed from Lao Capricorn Air Company, which was acquired by Phongsavanh Airlines Public Company under the leadership of Lao businessman Od Phongsavanh. The takeover became effective in January 2010. Following the transaction, the airline was renamed Phongsavanh Airlines and incorporated into the Phongsavanh Group, whose businesses included banking, international trading, timber, hospitality, telecommunications, and security products and services. In 2012, Phongsavanh Airlines adopted the Lao Central Airlines name. The rebranding was intended to raise awareness of the carrier as a Lao-owned airline in international markets. The company presented itself as a private Lao carrier offering both premium and budget seating. It was headquartered in Wattayyaithong Village in Vientiane's Sikhottabong District and used Vientiane as its operating base. Luang Prabang was also part of its domestic network. The airline operated scheduled passenger flights within Laos and to Thailand. Its documented destinations included Vientiane, Luang Prabang, and Bangkok. It was described as the second-largest Lao airline by fleet size, while remaining a small regional operator. Lao Central Airlines also hired PricewaterhouseCoopers for management consultancy work intended to support compliance with international aviation standards. The carrier planned a broader regional network and was associated with two Sukhoi Superjet 100 aircraft. Announced prospective destinations included Hanoi in Vietnam, Phnom Penh in Cambodia, Naypyidaw in Myanmar, Kuala Lumpur in Malaysia, as well as additional Lao and regional cities. These plans were not fully realized. Bangkok services were cancelled in December 2013 during political unrest in Bangkok, and Luang Prabang services were suspended in July 2014 to facilitate restructuring. Lao Central Airlines later announced that it expected to resume flights in mid-2015 under a new owner. The proposed restart became uncertain when the two Sukhoi Superjet 100 aircraft made for the airline were reported in December 2014 to have been transferred to the Russian Federation Presidential Office. By October 2016, no announcement had established when or whether service would resume. The airline is therefore recorded as having ceased operations in 2014.

• 2014

  Restructuring and service suspension

  [1]Lao Central Airlinesen.wikipedia.org

  Luang Prabang services were suspended in July while the company pursued restructuring.

• 2014

  Aircraft transfer casts doubt on restart

  [1]Lao Central Airlinesen.wikipedia.org

  Two Sukhoi Superjet 100 aircraft associated with the airline were transferred to the Russian Federation Presidential Office, weakening plans to resume service.

• 2013

  Bangkok route cancellation

  [1]Lao Central Airlinesen.wikipedia.org

  The airline cancelled Bangkok services in December because of political unrest in Bangkok.

• 2012

  Rebrand to Lao Central Airlines

  [1]Lao Central Airlinesen.wikipedia.org

  Phongsavanh Airlines was rebranded as Lao Central Airlines to strengthen its identity as a Lao-owned airline in international markets.

• 2010

  Phongsavanh takeover and airline renaming

  [1]Lao Central Airlinesen.wikipedia.org

  Phongsavanh Airlines Public Company took effective control of Lao Capricorn Air Company in January 2010, after which the carrier operated under the Phongsavanh Airlines name.

A Lao-owned private airline combining premium and budget seating with domestic and short-haul regional passenger services.

• Air transport · 2010

  Domestic passenger flights

  Scheduled passenger services within Laos formed the airline's domestic offering. The documented network included Vientiane, the principal base, and Luang Prabang, which was also identified as a branch location. Luang Prabang services were later suspended during the airline's restructuring in 2014.

• Air transport · 2010

  Regional international passenger flights

  Lao Central Airlines operated short-haul international passenger services, including flights between Laos and Bangkok, Thailand. The Bangkok route was cancelled in December 2013 amid political unrest in the Thai capital. The airline also announced a prospective network covering cities in Vietnam, Cambodia, Myanmar, and Malaysia, but those expansion plans were not confirmed as fully launched.

• Passenger service classes

  Premium and budget seating

  The airline marketed a mixed cabin proposition with both premium and budget seats. This approach was intended to address different passenger segments in the Lao domestic and regional travel market, although detailed fare rules, cabin specifications, and service standards are not established in the available reference material.

• Aircraft and fleet program

  Sukhoi Superjet 100 fleet plan

  Two Sukhoi Superjet 100 aircraft were made for Lao Central Airlines as part of its planned fleet and regional expansion. The aircraft were later reported to have been transferred to the Russian Federation Presidential Office, contributing to uncertainty over the airline's proposed return to operations.

• 2012Lao Central Airlines rebranding

  Laos · International markets

  The airline changed its name from Phongsavanh Airlines to Lao Central Airlines. The stated purpose was to improve recognition of the carrier as Lao-owned in international markets.

  Outcome. The new name was adopted, but the airline later suspended services and did not establish a confirmed long-term operating presence.

  Source

• 2014

  Suspend Luang Prabang services for restructuringStrategy

  Background

  The airline entered a restructuring period after operational disruption and the loss of its Bangkok service.

  Action taken

  Luang Prabang services were suspended in July 2014.

  Aftermath

  The company discussed a possible return under new ownership, but no confirmed restart was announced.

  Source

• 2014

  Plan a possible restart under new ownershipStrategy

  Background

  After suspending services, the airline announced that it might resume flights in mid-2015 under a new owner.

  Action taken

  The company communicated a prospective mid-2015 resumption plan.

  Aftermath

  The plan was placed in doubt after the two aircraft made for Lao Central Airlines were transferred to the Russian Federation Presidential Office. No confirmed resumption had been announced by October 2016.

  Source

• 2013

  Cancel Bangkok servicesStrategy

  Background

  Political unrest in Bangkok affected the operating environment for the airline's Thailand service.

  Action taken

  The carrier cancelled its Bangkok services in December 2013.

  Aftermath

  The cancellation reduced the airline's international network before its later restructuring and suspension of additional services.

  Source

• 2012

  Adopt the Lao Central Airlines identityStrategy

  Background

  The company sought a clearer Lao-owned identity for international audiences after operating under the Phongsavanh Airlines name.

  Action taken

  Phongsavanh Airlines was rebranded as Lao Central Airlines.

  Aftermath

  The airline continued domestic and regional operations under the new identity, but later faced route suspensions and restructuring.

  Source

• 2014

  Luang Prabang services suspended for restructuring[1]Lao Central Airlinesen.wikipedia.org

  Other

  The airline suspended its Luang Prabang services in July 2014 while undertaking a restructuring process.

• 2014

  Sukhoi Superjet aircraft transferred away from the airline[1]Lao Central Airlinesen.wikipedia.org

  Product generation

  Two Sukhoi Superjet 100 aircraft built for Lao Central Airlines were reported in December 2014 to be transferred to the Russian Federation Presidential Office, undermining the airline's proposed return to service.

• 2013

  Bangkok services cancelled amid political unrest[1]Lao Central Airlinesen.wikipedia.org

  Other

  Lao Central Airlines cancelled its Bangkok services in December 2013 because of political unrest in Bangkok.

• 2012

  Phongsavanh Airlines rebrands as Lao Central Airlines[1]Lao Central Airlinesen.wikipedia.org

  Campaign · Leadership change

  The airline adopted the Lao Central Airlines name as part of an effort to emphasize its Lao ownership and improve recognition in international markets.

• 2010

  Phongsavanh Airlines takes control of Lao Capricorn Air Company[1]Lao Central Airlinesen.wikipedia.org

  M&A · Leadership change

  Phongsavanh Airlines Public Company, headed by Od Phongsavanh, took effective control of Lao Capricorn Air Company in January 2010. The airline was subsequently aligned with the Phongsavanh Group.

1. 1Lao Central Airlinesen.wikipedia.org