Seat quotas up on Thai-Lao air routes

BANGKOK Weekly airline seat quotas on routes between Thailand and Lao PDR have been substantially increased in a bid to promote trade, investment and tourism between the two countries.

Thai and Lao PDR officials approved, last week, a revised Thai-Lao accord that increases the ceiling on seat capacity on routes between the two countries to as many as 14,500 seats weekly depending on the route.

According to the statement, the agreement will pave the way for designated carriers, registered in both countries, to add more flights on routes that have been restricted for years.

Under ASEAN open skies policy both countries signed off on a region-wide agreement that removes restriction on flights between member countries, first at capital city level and followed by the lifting of restrictions between secondary cities.

However, bilateral agreements still stand and each country has the right to adopt ASEAN open skies at a speed they are comfortable with, or that takes into account the interests of national airlines and the ability of airports to cope with expansion.

In the case of Lao PDR, the government protects its national airline, Lao Airlines, and has been reluctant to allow low-cost airlines to fly to Luang Prabang and Vientiane. However, it is now opening up and has given AirAsia permission to fly to both destinations.

Despite a resemblance of control over seating capacity, under the new accord, airlines from both countries will be able to expand flights considerably.

The seat capacity ceiling on the Bangkok-Vientiane route will increase more from 2,100 to 14,500 seats weekly. Most of the flights use A320 with a maximum of 200 seats.

On the Bangkok-Luang Prabang route, the weekly ceiling will increase from 1,000 to 10,000 seats.

The seat quotas for other customs and immigration enabled airports will increase from 450 to 2,100 per week.

Thai Airways International, Bangkok Airways and Thai AirAsia operate flights to and from Laos there are two airlines; Lao Airlines and Central Airlines.

Raising the seat capacity ceiling will now allow Thai Smile and Nok Air to apply for traffic rights.

A Nok Air executive told TTR Weekly, at the weekend, the airline has identified Laos as a priority destination, but has been hindered in the past due to the seat capacity limit.

“As we bring in new aircraft and resolve the pilot shortage by hiring foreign pilots on two-year contracts, we can review our expansion plans in the region in 2017,” he said.

According to Ministry of Tourism and Sports, Thailand attracted 1,233,138 Lao travellers, last year, increasing 17.00% from 1,053,983 visits in 2014.

Meanwhile, 2,321,352 Thai travellers visited Laos last year improving 13.58% from 2,043,761 visits in 2014, according to Laos’ Tourism Development Department data.