Lao Air was established on 24 January 2002, as a helicopter charter service company.

[3] On 8 December 2003, the airline signed a lease-to-purchase agreement with Lane Xang Minerals Limited Company for the lease of a Cessna Grand Caravan to use on its charter services.

On 7 October 2005, a second leased Cessna Grand Caravan was added to its fleet.

On 14 April 2007, its regular scheduled services began using the Cessna Grand Caravan.

[4] In April 2014 the company began using larger passenger aircraft on its scheduled routes.