China-Laos airline deal

China-Laos airline deal

BEIJING (Reuter): China's Yunnan Airlines has signed a contract with Vientiane to lease and operate airliners on both domestic and international routes for Laos, the Xinhua news agency said on Saturday.

The contract, signed on Dec. 31 in Vientiane, establishes the Lao Aviation Development Venture Company, the president of Yunnan Airlines, Xue Xiaoming, told the agency.

The Chinese company, based in Kunming, provincial capital of Yunnan, will hold 60 percent of the company's shares and Laos Airlines the rest. Yunnan Airlines will lease planes to operate on the smaller country's domestic and international routes, Xue said.

The joint venture plans to open new air routes from Laos to Singapore, Malaysia and Thailand, and to connect both Laos and Yunnan with neighboring countries, he said.

The new company will operate flights from Vientiane to Beijing via Kunming.