A few of us had an exchange today in the Luxury Hotels forum about Lao Aviation. Bottom line is, in my opinion, it's minimally ok. I've flown it from Luang Prabang to Vientiane a couple of times and lived to tell the tale. If pressed, I'd let my daughter fly on it, grudgingly.

There are issues of flying to sites in bad weather or when the ground is obscured by smoke or low clouds because of the lack of navaids, especially when aircraft other than the ATR72 are used. On the other hand, not everyone like 11 hour bus rides as an alternative.

No comment on the hotels. I think you mentioned in another post about Yangon hotels that you stayed at the Strand. I had some drinks there, during happy hour, and wobbled back to my $15/night hotel after. (Well, ok, I stopped off at 50th Street Bar and Grill on the way back since I wasn't quite wobbling symmetrically.)
Rich