Announced joint venture with Sivilai Asia to establish AirAsia Cambodia
Phnom Penh – AirAsia Group Limited (AAAGL), Aviation Division capital limited companyand Sville Asia Establish AirAsia Cambodiaa new low-cost airline in the Kingdom of Miracles.
The new airline will further strengthen AirAsia’s brand in Cambodia and Indochina, providing AirAsia with greater access to the domestic market and most importantly connecting it to international markets in ASEAN, North Asia and beyond. The new airline will enable AAAGL to operate in various existing markets where it already operates and operates, to build scale, network connectivity and further reduce operating costs. AirAsia Cambodia aims to further stimulate Cambodia’s aviation and tourism industry, introducing exciting new destinations, creating jobs and bringing true low-cost operations to the country.
joint venture by Tony FernandezCEO of Capital A and Nam WissoDirector of Sivilai Asia Rosewood Phnom Penh. The signing ceremony was witnessed and presided over by His Excellency Dr. Wang Yi. Mao Havenall, Minister in charge of the State Secretariat for Civil Aviation, Bollingam, CEO AAAGL; Subarini SilvadasCEO AirAsia Consulting; and several key government and industry partners.
Subject to obtaining relevant regulatory approvals, the joint venture is expected to begin operations by the end of 2023.
Capital A CEO Tony Fernandes said: “Capital A continues to focus on ASEAN, where we know best and have the strongest brand. Cambodia is the fifth ASEAN country, and we are continuing to be the largest transporter of people and goods in the region and provide the key to economic growth for ASEAN countries.” AirAsia The value of the network is an insurmountable asset; it will serve as another flag for wider connectivity between Cambodia and the region (i.e. China, India and North Asia).
“2022 is about restarting our airline to pre-Covid levels. The machine is in place and will be completed by the second quarter of 2023. In the second half of 2023 we will focus on continuing to work towards growth. Full confidence in profitability for one year. Since Cambodia is a market we are familiar with and we have a deep infrastructure. That is why all our future airlines will be based in ASEAN. Since this is an area we are familiar with, we can quickly Profit and connect our very large network to key locations in Cambodia namely Phnom Penh, Siem Reap and Sihanoukville.
“As we celebrated our 21st birthday on December 8, 2001, as we dreamed of bringing ASEAN closer, our mission remained the same – to democratize air travel and connect people and places, delivering the best value , driving tourism and boosting ASEAN’s economic growth. Capital A will continue to build on this growth and I am confident in the opportunity to serve one of ASEAN’s most dynamic and fastest-growing economies in both digital and aviation.”
Vissoth Nam, Director of Sivilai Asia said: “As one of the first countries to open for international travel without quarantine in November 2021, Cambodia is leading the way in ASEAN’s post-COVID air travel recovery journey, with other countries in the region following suit. Today, we are proud to be able to Be the catalyst for a new low-cost airline operating in Cambodia.
“Increased connectivity and best value fares will certainly stimulate demand for air travel due to increased choice of airlines and destinations. This will open doors for students to travel abroad, support work-related travel and boost trade Connect and provide a welcome impetus to the growth of emerging SMEs.
“This would not have been possible without the support of our local government and tourism partners in Cambodia, many other relevant departments and AAAGL. We sincerely thank them for their continued support in making AirAsia Cambodia a reality and giving us the opportunity Contribute to the Cambodian government’s strategy to further expand its connectivity and boost tourism in the region. We can’t wait to connect the people of Cambodia with the rest of ASEAN and beyond as soon as possible.”
AAAGL Group CEO Bo Lingam said the establishment of a controlling joint venture in Cambodia was a natural step for the group as AAAGL is the largest foreign airline and the second largest airline group operating Cambodia as a whole in terms of capacity. Before the pandemic, AirAsia operated 90 weekly flights from Malaysia and Thailand, and currently has about 49 weekly flights to Cambodia.
“Setting up a joint venture in Cambodia is in line with our ASEAN expansion strategy. We plan to operate primarily at existing stations within a four-hour radius from the Kingdom. AirAsia Cambodia will increase in the future by launching new services to ASEAN, North Asia and beyond Cambodia web services.
“This is a true testament to the successful partnership between AAAGL and Sivilai Asia. We are excited about the prospect of delivering the best value in low-cost air travel connectivity, experience and convenience to the seventh largest country in ASEAN.”
AAAGL operates five routes to Cambodia, from Kuala Lumpur to Siem Reap and Phnom Penh, from Penang to Phnom Penh (from January 23, 2023), and from Bangkok (Don Mueang) to Siem Reap and Phnom Penh. Since entering the Cambodian market in 2005, AirAsia has transported more than 10 million passengers to and from Cambodia.