Abacus and Lao Airlines sign JV agreement
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Robert Bailey, President and Chief Executive Officer of Abacus International, and Dr Somphone Douangdara, President of Lao Airlines, exchange contracts at Don Chan Palace Hotel in Vientiane
Abacus International and Lao Airlines today signed a ten-year joint venture agreement. Under the new agreement, valid until May 2021 with a five-year renewal option, Abacus-connected travel agents will have access to Lao Airlines full range of fares, while the airline will benefit from greater access to international business and leisure travellers.
A key product of the deal is the launch of Abacus National Marketing Company (NMC), which will provide a global distribution system for travel companies and travel agents in Laos. Through NMC, in which the companies hold an equal share, Abacus will work with local travel agents and suppliers, providing them with the tools and training to broaden their markets and expand their business. Operations will initially be based out of the Lao Airlines headquarters, before moving to Abacus’ new Vientiane office, which is set to open within the next few months.
“Abacus sees Laos as a very important market given its rapid growth and development into the travel hub of Indochina region,” said Robert Bailey, President and Chief Executive Officer of Abacus International, calling the country “the growth tiger of Indochina”. The CEO said the new partnership with the national carrier will improve turnover and profit for Abacus customers, and he expect their joint business to grow in the years to come.
For Lao Airlines, the agreement will broaden the carrier’s continuity and investment horizons, expanding its reach in the Asia Pacific region. This is good timing for the flag carrier which is to launch new service to Singapore in November following the arrival of new A320 aircraft. Airline sources told Travel Daily Asia that Seoul, South Korea, and Japan are possible network destinations after that, with promising growth in the business and leisure travel from both North Asian countries.
Commenting on the agreement, Lao Airlines President Dr Somphone Douangdara said; “
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