The government will not interfere with Lao Airlines' decision to raise ticket prices for Lao nationals, to bring them in line with prices paid by foreigners, according to a senior aviation official.
“The government has a new policy to allow the airline to run its business in accordance with market forces. That means we will not always do the same as we have in the past,” the Director General of the Civil Aviation Department of the Ministry of Public Works and Transport, Mr Yakua Lopangkao, told Vientiane Times yesterday.
Lao Airlines announced on Friday that it would charge all passengers the same rate without discrimination, saying that Lao people are now better off and can afford to pay the higher fares.
The airline's Commercial Director, Mr Rada Sounthone, said yesterday that a Lao citizen who wants to buy a round trip ticket from Vientiane to Huayxai in Bokeo province will now have to pay 1.62 million kip, instead of 1.45 million, from the middle of this month.
Mr Yakua said the government considers Lao Airlines to be a means of travel for high-income passengers. Those who cannot afford this form of travel could use other modes of transport, such as bus or boat.
“The situation has changed from the days when only planes could reach the most remote areas; there are now more alternatives to access almost every corner of the country,” he said.
In the past the airline charged foreigners more than locals because the company used the extra revenue to subsidise the lower ticket prices. This was one of the methods that helped the airline to operate effectively, and ensured sustainable service to all destinations around the country.
Mr Yakua said many foreigners had complained to the government about being charged more, and felt this to be unfair.
He hoped that the new policy of charging one rate for all passengers would please the airline's customers.
He explained that the government wanted Lao Airlines to run at a profit and expand its business operations independently.
The government's policy was not to subsidise losses as in the past because that would delay the growth of the airline.
Mr Rada said one of the main reasons behind the price increases was the higher price of fuel. If the company continued to charge passengers at the existing rate, it would have a negative impact on income generation and business performance.
On the advice of the government, the carrier will accept payment only in kip, following the continuing decline of the US dollar.
Mr Rada said the new ticket prices would not affect passenger numbers, as a pilot project had already demonstrated that demand would remain steady.
this mean first comes first serves!!! in the past they charged the lao national little less that the rest of tourists... and they also reserve the rights to bumb the lao national in order to serve the tourists... who paid a little higher price fares.
they need to upgrade/improve their ONLINE department.. seems like that site been hacked so many times..
