The Nationthailand

Add to Home Screen.

TUESDAY, January 31, 2023
AirAsia back to growth phase with the launch of a new low-cost airline in Cambodia

AirAsia back to growth phase with the launch of a new low-cost airline in Cambodia

FRIDAY, December 09, 2022

AirAsia Aviation Group Limited (AAAGL), the aviation arm of Capital A Berhad, today signed a Joint Venture (JV) agreement with Sivilai Asia to establish AirAsia Cambodia, a new low-cost airline in the Kingdom of Wonder.

The new airline will 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 in the various existing markets where it already has presence and operations to build scale, network connectivity and further reduce the cost of operations. AirAsia Cambodia aims to further stimulate the Cambodian aviation and tourism industries, launch exciting new destinations, create jobs and bring a truly low-cost operation to the country.

The JV was signed by Tony Fernandes, CEO of Capital A and Vissoth Nam, Director of Sivilai Asia at Rosewood Phnom Penh on Friday

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

Tony Fernandes said: “Capital A continues to focus on Asean where we know best and our 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." 

Vissoth Nam said: “As one of the first countries to open up international travel with no quarantine in November 2021, Cambodia has led the way in Asean’s air travel recovery journey post-Covid, with the rest of countries in the region following suit. Today, we are proud to be the catalyst for a new low-cost airline operating from Cambodia.

Bo Lingam, Group CEO of AAAGL said setting up a majority-controlled JV in Cambodia is a natural step for the Group as AAAGL is the largest foreign airline and the second largest airline group overall operating in Cambodia in terms of capacity. Pre-pandemic, AirAsia operated 90 weekly flights from Malaysia and Thailand and is currently flying about 49 weekly flights to Cambodia.

AAAGL operates five routes to Cambodia from Kuala Lumpur to Siem Reap and Phnom Penh, from Penang to Phnom Penh (starting 23 January 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.