Phongsavanh Airlines

Phongsavanh Airlines was a private Lao passenger airline associated with the Phongsavanh Group. It emerged after Lao Capricorn Air Company was sold to Phongsavanh Airlines Public Company, headed by Lao businessperson Od Phongsavanh, which took effective control in January 2010. The acquisition and renaming brought the airline into the same wider business group as Phongsavanh Bank and other Phongsavanh interests. The airline was positioned as a Lao-owned carrier serving both premium and budget passengers. It was described as the first private airline in Laos and, during its operating period, became the second-largest Lao airline operator by fleet size. Its base was in Vientiane, with Luang Prabang serving as another operational location. The airline operated scheduled services linking Laos and Thailand, including flights between Vientiane and Bangkok, and services involving Luang Prabang. In 2012, the business changed its public identity from Phongsavanh Airlines to Lao Central Airlines. The rebranding was intended to make the carrier's Lao ownership more recognizable in international markets rather than to retain a name closely identified with the Phongsavanh banking and business group. The renamed airline also sought to develop a broader regional network. Announced or proposed destinations included Hanoi, Phnom Penh, Naypyidaw and Kuala Lumpur, in addition to existing or planned services to Bangkok and Lao domestic points. To support its management and operational development, the airline engaged PricewaterhouseCoopers for management consultancy services. The stated purpose was to help the carrier meet international aviation standards. The fleet included two Sukhoi Superjet 100 aircraft associated with the airline, although the planned expansion around those aircraft did not result in a sustained return to service. The carrier's operations weakened during a period of regional and company-specific disruption. Bangkok services were cancelled in December 2013 amid political unrest in Bangkok. Luang Prabang services were suspended in July 2014 while the airline underwent restructuring. Although the company announced that flights might resume in mid-2015 under new ownership, the proposed restart became doubtful after it was reported in December 2014 that the two Sukhoi Superjet 100 aircraft built for Lao Central Airlines would be transferred to the Russian Federation Presidential Office. No confirmed resumption had been announced by October 2016, and the airline is generally treated as defunct.

The airline's immediate predecessor was Lao Capricorn Air Company. In January 2010, Lao Capricorn Air was sold to Phongsavanh Airlines Public Company, a company headed by Lao businessman Od Phongsavanh. The transaction gave Phongsavanh effective control of the carrier. It was subsequently renamed Phongsavanh Airlines, aligning the airline with Phongsavanh Bank and the broader Phongsavanh Group, whose activities also included international trading, timber, hospitality, telecommunications, banking, and security-related products and services. Phongsavanh Airlines was presented as Laos's first private airline. Its commercial proposition covered both premium and budget seating, and the carrier sought to establish a role in domestic and short-haul regional travel. Vientiane served as its principal base, while Luang Prabang was identified as a branch or secondary operating location. The airline's known scheduled network included Vientiane, Luang Prabang and Bangkok. It was described as the second-largest Lao airline operator by fleet size during the period in which it was active. The company changed its name to Lao Central Airlines in 2012. The rebranding was intended to communicate Lao ownership more clearly to international customers and partners. Under the new identity, the airline publicized ambitions for a wider Southeast Asian network, with proposed destinations including Hanoi, Phnom Penh, Naypyidaw and Kuala Lumpur. These plans represented an attempt to move beyond a limited Laos–Thailand network, although the available record does not establish that all of the announced routes entered regular operation. The airline also sought external management support. PricewaterhouseCoopers was engaged as a management consultant, with the stated objective of supporting compliance with international aviation standards. Fleet expansion plans were associated with two Sukhoi Superjet 100 aircraft manufactured for Lao Central Airlines. Those aircraft became important to expectations that the airline might restart and expand its services. Operational difficulties followed. In December 2013, the airline cancelled its Bangkok route because of political unrest in Bangkok. In July 2014, services to Luang Prabang were suspended to permit restructuring. The company later announced that flights could resume in mid-2015 under a new owner. That prospect was weakened in December 2014 when the two Sukhoi Superjet 100 aircraft intended for the airline were reported to be transferred to the Russian Federation Presidential Office. Without those aircraft, and with no confirmed operational restart, the airline's future became uncertain. By October 2016, there had been no public announcement confirming when or whether services would resume. The carrier is therefore treated as defunct, with Phongsavanh Airlines representing its earlier operating name and Lao Central Airlines its later public identity.

• 2014

  Luang Prabang route suspended

  [1]Lao Central Airlinesen.wikipedia.org

  The airline suspended Luang Prabang services in July as part of a restructuring process.

• 2014

  Sukhoi Superjet aircraft transferred

  [1]Lao Central Airlinesen.wikipedia.org

  Two Sukhoi Superjet 100 aircraft made for Lao Central Airlines were reported to be transferred to the Russian Federation Presidential Office, undermining plans to resume operations.

• 2013

  Bangkok route cancelled

  [1]Lao Central Airlinesen.wikipedia.org

  Bangkok services were cancelled in December amid political unrest in the Thai capital.

• 2012

  Rebrand to Lao Central Airlines

  [1]Lao Central Airlinesen.wikipedia.org

  The airline adopted the Lao Central Airlines name to strengthen recognition of its Lao ownership in international markets.

• 2010

  Phongsavanh takes control of Lao Capricorn Air

  [1]Lao Central Airlinesen.wikipedia.org

  Lao Capricorn Air Company was sold to Phongsavanh Airlines Public Company, which took effective control and renamed the carrier Phongsavanh Airlines.

A Lao-owned private airline intended to combine premium and budget passenger offerings with regional connectivity from Vientiane.

• Passenger air transport · 2010

  Scheduled passenger services

  The airline's core offering was scheduled passenger transportation from its Vientiane base, with service involving Lao domestic destinations and regional international routes. Its known network included Bangkok and Luang Prabang, although some routes were later cancelled or suspended.

• Airline cabin offering

  Premium and budget seating

  Phongsavanh Airlines was described as offering both premium and budget seats, indicating an attempt to serve more than one passenger segment within the Lao and regional markets.

• Aircraft fleet

  Sukhoi Superjet 100 fleet plan

  Two Sukhoi Superjet 100 aircraft were made for Lao Central Airlines and were associated with its plans for continued or resumed operations. Their later transfer to the Russian Federation Presidential Office cast doubt on the proposed restart.

• 2014

  Suspend Luang Prabang services for restructuringStrategy

  Background

  The airline faced operational difficulties and needed to reorganize its business.

  Action taken

  Services to Luang Prabang were suspended in July.

  Aftermath

  The company announced a possible restart under new ownership, but no confirmed resumption followed.

  Source

• 2013

  Cancel Bangkok servicesStrategy

  Background

  Political unrest in Bangkok affected the airline's international operations.

  Action taken

  Lao Central Airlines cancelled its Bangkok services in December.

  Aftermath

  The cancellation reduced the carrier's active international network before its later restructuring.

  Source

• 2012

  Adopt the Lao Central Airlines identityStrategy

  Background

  The Phongsavanh name connected the carrier closely with its owner and affiliated businesses, while the company sought stronger recognition as a Lao airline in international markets.

  Action taken

  The airline rebranded from Phongsavanh Airlines to Lao Central Airlines.

  Aftermath

  The new identity was used during the carrier's later expansion plans and final operating period.

  Source

• 2014

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

  Other

  Lao Central Airlines suspended Luang Prabang services in July while undertaking restructuring.

• 2014

  Planned Sukhoi Superjet 100 aircraft are transferred[1]Lao Central Airlinesen.wikipedia.org

  Other

  Two Sukhoi Superjet 100 aircraft built for Lao Central Airlines were reported to be transferring to the Russian Federation Presidential Office, casting doubt on the airline's proposed restart.

• 2013

  Bangkok services are cancelled[1]Lao Central Airlinesen.wikipedia.org

  Other

  The carrier cancelled its Bangkok services in December during political unrest in Bangkok.

• 2012

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

  Other

  The airline adopted the Lao Central Airlines name to emphasize its Lao identity in international markets.

• 2010

  Lao Capricorn Air Company is taken over and renamed Phongsavanh Airlines[1]Lao Central Airlinesen.wikipedia.org

  M&A · Leadership change

  Phongsavanh Airlines Public Company took effective control of Lao Capricorn Air Company, bringing the carrier into the Phongsavanh Group.

1. 1Lao Central Airlinesen.wikipedia.org