Chief Executive Adviser of Lao Central Airlines, Richard S. Miller, analyses in this interview the strategy the airline aims to follow in order to blossom and become more competitive. "We can become an influent player […]. Especially as we position ourselves as a premium carrier with a two-class service product"
Newest kid in ASEAN skies, Lao Central Airlines wants to be an influent player in a rather small market like Laos. The airline is part of one of Laos largest companies, the Phongsavanh Group of Companies. Pongsavanh is busy in international trading, timber, hotel, telecommunications, security products, banking and now air transport. Lao Central Airlines was previously known as Pongsavanh Airlines and was established in May 2010 to service the domestic and regional Asian market. It changed its name at the end of 2011. The carrier aims to be one of the premier airlines in Asia Chief Executive Adviser Richard S. Miller tells all about the airline’s strategy to blossom…
TravelDailyNews: Laos is a rather small market with a small population and limited wealth. Do you think that it can support two air carriers?
Richard S. Miller: Most ASEAN countries have at least two carriers. I strongly believe that competition is good for the industry, and good for the consumer by providing choices, more flights and the ability to choose between a state operator and a private one. We can become an influent player as Laos is in the midst of a tourism boom and that more people wants to visit us. Especially as we position ourselves as a premium carrier with a two-class service product.
TDN: Is Thailand a priority market to serve for Lao Central Airlines?
R.S.M.: We mostly go for neighbouring markets and Thailand is of course a natural market where we want to be. Not only due to the size of its population but also due to the historical and cultural affinities existing between Laos and Thailand. There is for example religious travel with many Thais interested to come to visit our temples or discover our historical sites. We have already been flying to Bangkok now for six months up to nine times per week. We are now planning to fly direct from Vientiane to Khon Kaen, one of Isan’s most important cities in Thailand. We would love to fly also from Bangkok to Luang Prabang as we feel there is a strong market. However, we are restricted by the bilateral between both countries which only allow two airlines to serve the route. Both Bangkok Airways and Lao Airlines are already serving it and we will have to wait for the complete ASEAN open sky to enter this market…
TDN: Which other markets do you target?
R.S.M.: We study many markets in the Greater Mekong Sub-region which can ideally be served with our newest aircraft, the Sukhoi Superjet 100, which can fly up to three hours and a half non-stop but has only a capacity of 93 seats. We identified routes from Vientiane to Cambodia, both Phnom Penh and Siem Reap, to Yangon in Myanmar as well as to Vietnam to both Ho Chi Minh City and Hanoi. But we think also that we could fly to Singapore as well as to China, most probably Kunming. We are a very flexible operator and can easily put a new flight according to the demand.
TDN: How many Sukhoi aircraft have you got in your fleet?
R.S.M.: We currently have two Boeing 737 and received on February 15 our first Sukhoi Superjet 100. We will add another three SSJ100s and have signed with Sukhoi for another six options. The aircraft will be put into service on our domestic route Vientiane-Luang Prabang as well as regional destinations. From April, we plan to add more international services most probably to Hanoi and Phnom Penh.
TDN: Payments online are still complicated with Lao Central Airlines. Do you plan any improvement?
R.S.M.: We accredited a number of travel agents for selling our flights and we also have a GSA in Bangkok. It is in fact possible to book online and pay to our GSA or from our reservation office. In Thailand, passengers can directly process their payment through Bangkok Bank counters.
Luc Citrinot a French national is a freelance journalist and consultant in tourism and air transport with over 20 years experience. Based in Paris and Bangkok, he works for various travel and air transport trade publications in Europe and Asia.
