Phongsavanh Group of Laos, Mekong Group from Singapore, and the Khon Kaen Chamber of Commerce in Thailand have signed a memorandum of understanding over the proposed establishment of Khonkaen Airlines (Khon Kaen).

Following the signing of the tripartite agreement, Mekong Group will conduct a feasibility study on the new airline, ranging from aircraft procurement and registration to marketing strategies and customer services. According to The Bangkok Post, Khonkaen Airlines has been registered in Thailand with a share capital of THB200 million baht (USD6.1 million). Should the project move ahead Phongsavanh Group, which previously operated Lao Central Airlines (LF, Vientiane), would source aircraft in the form of B737-8 and B777-300 equipment.

Khonkaen Airlines would focus on connecting Thailand's northeastern provinces with destinations in the Mekong region, as well as China and possibly other parts of Asia.

Its launch is expected to occur within a two-year timeframe.