New national carrier Cambodia Airlines is born

Cambodia's second flag-carrying airline was established on Tuesday as a local conglomerate and a company from the Philippines signed a deal in Phnom Penh.

Cambodian-owned Royal Group and the San Miguel Corporation—which owns a controlling stake in Philippine Airlines—tied up to create Cambodia Airlines, a brand-new carrier that will fly domestic and international routes from Cambodia.

The new airline is looking to capitalise on Cambodia's rapidly growing economy and air traffic numbers, as well as on the dynamic Association of Southeast Asian Nations (Asean) region, which has plans for an integrated economic community by 2015.

"The benefits of partnering with Philippine Airlines are, initially, we will see increased arrivals from amongst 94 million Filipinos," said Kith Meng, chairman of the Royal Group.

"Later, as our route network expands, we will see a greater number of business [and] tourist arrivals from Asean and East Asia. The increased travel into and out of Cambodia will foster increased commerce. In turn, the greater FDI in Cambodia can be expected...with the arrival in 2015 of the Asean economic community."

According to Royal Group CFO Mark Hanna, the airline will initially lease two Airbus A321s for international routes and two Bombadier Dash 8s for domestic flights.

The key benefit, Hanna said, will be Phnom Penh's only direct flight to Manila, which will link up with Philippines Airlines flights going to the US and elsewhere.

Although routes had not yet been firmly decided upon, domestic flights could begin as early as June this year and international flights are expected to begin in October, he added.

"I would like to thank the Cambodian government and our partner, Royal Group, for this opportunity to help introduce a national carrier that will boldly carry the flag of your country throughout the world," said Ramon S. Ang, San Miguel Corporation and Philippine Airlines chief operating officer and president.

"We are confident that Cambodia Airlines will play a significant role in helping spur more economic growth and tourism in Cambodia."

The deal was signed in an elaborate ceremony, attended by one of the sons of Cambodian Prime Minister Hun Sen as well as Deputy Prime Minister Sok An, a sign that the new carrier has high-level local support.

But it will compete with Cambodia Angkor Air, the existing national carrier established in 2009, in which the Cambodian government owns a majority share in a partnership with Vietnam Airlines.

Phnom Penh International Airport handled 2.08 million passengers in 2012, a growth of 13 percent year on year. Phnom Penh's airport, as well airports in the tourist towns of Siem Reap and Sihanoukville, is operated under concession by Cambodia Airports.

The operator, which is majority-owned by French infrastructure giant Vinci Group, is spending nearly $150 million on doubling the capacity of both airports to handle 5 million passengers each a year by 2015.

Sourced: Cambodia News