AirAsia launches new low cost airline in Cambodia

Sivilai Asia director Vissoth Nam (seated, left) and Capital A CEO Tan Sri Tony Fernandes (seated, right) at the AirAsia Cambodia joint venture signing ceremony.

PETALING JAYA: AirAsia Aviation Group Limited (AAAGL), the aviation arm of Capital A Bhd, has signed a joint venture (JV) agreement with Sivilai Asia to establish AirAsia Cambodia, a new low cost airline in Cambodia.

In a statement, the budget carrier said the new airline would further cement AirAsia’s brand in Cambodia and Indochina, providing AirAsia with greater access to its domestic market and most importantly connecting it to the international markets across Asean, North Asia and beyond.

This new airline will allow AAAGL to operate to the various existing markets where it already has presence and operations to build scale, network connectivity and further reduce the cost of operations, it said.

AirAsia Cambodia aims to further stimulate the Cambodian aviation and tourism industries, launch exciting new destinations, create jobs and bring a true low cost operation to the country.

Subject to obtaining the relevant regulatory approvals, the JV is expected to commence operations in late 2023.

Capital A CEO Tan Sri Tony Fernandes said the group continued to focus on Asean where it know best and its brand is the strongest.

“Cambodia is the fifth Asean country where we are continuing our march of being the region’s number one mover of people and cargo, and providing a linchpin of economic growth for Asean countries.

“The value of AirAsia’s network is an insurmountable asset; it will be another flag of extensive connectivity in Cambodia and into the region, namely China, India and North Asia,” he said.

“2022 was about restarting our airline to pre-Covid levels. That machine is in place and will be completed by the second quarter of 2023. The second half of 2023 will be when we focus on our continued efforts in growth.

“We are confident of profitability in the first year. As Cambodia is a market that is familiar to us and where we have deep infrastructure in place. That’s why all our future airlines will be based in Asean. As this is an area we know well and can derive quick profitability and connect our very large network to the main points of Cambodia, namely Phnom Penh, Siem Reap and Sihanoukville,” Fernandes said.

AAAGL operates five routes to Cambodia from Kuala Lumpur to Siem Reap and Phnom Penh, from Penang to Phnom Penh (starting Jan 3,2023) as well as from Bangkok (Don Mueang) to Siem Reap and Phnom Penh.

Since entering the Cambodian market in 2005, AirAsia has carried over 10 million guests to and from Cambodia.