Laos’ aviation sector requires greater transparency, Assembly hears

by Somxay Sengdara

National Assembly (NA) members have proposed for the circumstances around the business of the national civil aviation to be opened for the Assembly through the enforcement of the Law on Civil Aviation.

National Committee on civil aviation security, drone management were also among the top issues at the legislative debate on the Law on Civil Aviation.

Assembly members made proposals at the debate on amendments to the ten-year-old law yesterday.

Several NA members present at the debate sought clarification about the current status and performance of Lao Airlines as the national civil airline.

From its audit in 2015, the International Civil Aviation Organisation (ICAO) Coordinated Validation Mission (ICVM) team gave a 73 percent score to the Lao Department of Civil Aviation (DCA).

Despite that, unofficial information disseminated inferred that the civil air transport services have faced losses over several years.

Mr Viengthavisone Thepphachanh said he wanted this law to create more open discussion on the national civil aviation business, as had been achieved in the finance sector via the Law on the Bank of Lao PDR.

“Many laws discuss related businesses, but this law did not mention about the Lao Airlines, the form of enterprise, administration structure, business operation, funding source, and priorities,” he said.   

Lao Airlines is as yet the only civil airline in Laos that is offering services in both domestic and international markets.

“The government funds the Lao Airline business or gives guarantee for loans, however, the result of the business operation, as we have learned, was not very optimal yet this information was not disseminated to the Assembly,” Mr Viengthavisone noted, also referring also to the stated opinions of fellow NA members.

The updated drafted of the Law on Civil Aviation has 18 parts, divided into 173 articles.

Some 67 articles have been amended and 95 new articles included.

NA member for Xiengkhuang province, Mr Vilaysouk Phimmasone, asked for figures on how much Lao Airlines contributed to the national economy.

He pointed out the example of the national carrier of a neighbouring country, which was said to have generated some US$6 billion to their GDP, and US$1.7 billion to state revenue.

Mr Vilaysouk wanted Lao Airlines to achieve its potential as an income generator for Laos especially as a landlocked country, something requiring the proper enforcement of the law.

NA for Vientiane province, Mr Hongkham Souvannavong said he did not see in this law an article about airport administration and services, noting the importance of selection procedures for all contracts.

In his opinion, an airport administrator must be a technically capable person, who has experience in management, and selection procedure should follow the relevant international standards.

Source Vientiane Times