Khon Kaen plans to launch its own provincial airline to serve the rising number of domestic and international air travellers and better accommodate people in the Northeast.
A feasibility study for the proposed Khonkaen Airlines started yesterday when the Khon Kaen Chamber of Commerce, Laos-based Phongsavanh Group and Singapore's Mekong Group signed a memorandum of understanding (MoU) on the study, which will take six months.
"We're not going to compete with our national flag carrier, Thai Airways International," insisted Khon Kaen Chamber of Commerce chairman Khemchat Sochaiwong.
The new airline will focus on international routes for passengers from northeastern provinces and for foreigners visiting Thailand, he said. It will be registered as a Thai airline, Mr Khemchat added.
The move comes as aviation businesses are growing in Thailand and Khon Kaen Airport was recently upgraded to the status of an international airport.
It serves over 1.5 million travellers a year.
Local businessmen joined with Phongsavanh Group because the Lao company and the Khon Kaen Chamber of Commerce enjoy close ties, Mr Khemchat said.
The group also has a track record in the air travel industry as it owns Lao Central Airlines.
Phongsavanh Group plans to supply Boeing's 737-800 MAX and 777-300 aircraft for the joint venture, Mr Khemchat said.
"This is historic," said Somboun Phongsavanh, a representative of the group. He said Khon Kaen Airlines will connect first to countries and regions in the Mekong River basin area including southern China before expanding to the rest of Asia.
Mekong Group will conduct a study for the new airline, ranging from aircraft procurement and plane registration to marketing strategies and customer services, Mr Khemchat said. It is not known when they hope to launch the airline.
