AirAsia Aviation Group Limited (AAAGL) has signed a Joint Venture (JV) agreement with Sivilai Asia to establish AirAsia Cambodia, a new low-cost airline. With this new airline, the AirAsia Group plans to cement AirAsia’s brand in Cambodia and Indochina. Besides this airline will also provide AirAsia with greater access to its domestic market and international markets across Asean, North Asia, and beyond.
Tony Fernandes, CEO of Capital A, said: “Capital A continues to focus on ASEAN where we know best and our brand is the strongest. Cambodia is the fifth Asian 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, Director of Sivilai Asia, said: “As one of the first countries to open 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 the 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 into 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. This is a true testament to a successful partnership between AAAGL and Sivilai Asia. We are excited about the prospect of delivering the best value low-cost air travel connectivity, experience, and convenience to the seventh largest country in ASEAN.”
The Cambodia market is already familiar to AirAsia Group with AAAGL operating five routes to Cambodia from Kuala Lumpur to Siem Reap and Phnom Penh, from Penang to Phnom Penh, starting 3 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.
The JV is expected to commence operations by late 2023, subject to regulatory approvals. Also, the new airline 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.