AirAsia has announced the launch of a new low-cost carrier in Cambodia named AirAsia Cambodia.
AirAsia Aviation Group Ltd (AAAGL), Capital A Bhd, and Cambodia’s Sivilai Asia’s aviation arm have invested $25 million to launch a new low-cost airline. With the growth of passenger demand, it’s an excellent opportunity for AAAGL to increase its family group.
New Low-Cost Carrier Will Operate Under AAAGL
The airline will take off in late 2023, as they are still waiting for regulatory approvals. The company already has seven subsidiaries in its group, with one, AirAsia X, recently reporting its first net profit since 2019.
The company said in a statement:
“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.”
Capital A chief executive officer Tan Sri Tony Fernandes and Sivilai Asia director, Vissoth Nam, signed the JV agreement, with operations expected to commence in late 2023. The airline, which already has routes in Cambodia, will increase destinations and provide more options to travellers. With the grand return of travellers, AirAsia hopes to operate back at the total capacity of 2019.
“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.” said Fernandes
AAAGL operates five routes to Cambodia – Kuala Lumpur (KL)-Siem Reap; KL-Phnom Penh; Penang-Phnom Penh (starting January 3, 2023), Bangkok (Don Mueang)-Siem Reap, and Bangkok-Phnom Penh.
“We plan to operate mostly to our existing stations within the four hour radius from the Kingdom. AirAsia Cambodia will increase Cambodia’s network offerings by launching new services to Asean, North Asia and beyond in the future,” said AAAGL group CEO Bo Lingam.
AirAsia Cambodia will operate with Airbus A321, which, according to AAAGL, fits the market for this airline. Capital A hopes to extend its flight to China, India, and Japan long-term.
As there are no direct flights from Cambodia to these countries, it’s an excellent opportunity for the airline to expand its destinations. Japan, which has lifted restrictions after two years, has offered free visas to a dozen countries they hope will boost the Tourism sector.
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