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.