Budget carrier AirAsia will be operating between the two cities, Foreign Minister Datuk Seri Syed Hamid Albar announced yesterday.

This was agreed upon by both governments at the third joint commission meeting for bilateral co-operation here.

The decision to resume direct air links was made as part of steps to increase co-operation in tourism and to boost trade and investment, he said after the two-day meeting.

Syed Hamid led the Malaysian delegation, while Laos Deputy Prime Minister and Foreign Affairs Minister Dr Thongloun Sisoulith led the Laos delegation.
Malaysia Airlines had mounted flights into Vientiane beginning in 1996 but ceased operations since 1998 due to the Asian financial crisis.

Syed Hamid said resumption of direct flights was mutually beneficial as Laos was keen to have more Malaysians invest there.

Malaysia is the ninth largest investor there, with interests in hotels and hydropower facilities.

Trade with Laos is now worth US$58 million (RM197.7 million).

Both countries also discussed plans to exchange plots of land in Putrajaya and Vientiane for the building of their respective embassies and ambassadors’ residences.

Other areas of co-operation such as capacity-building to help develop Laos’ economy were discussed, including plans for the country to explore rubber planting.

Laos has also extended an invitation to Prime Minister Datuk Seri Abdullah Ahmad Badawi to visit the country.

The next bilateral meeting will be held in Vientiane in 2009.

Quoted from nst.com.my