PHNOM PENH, Dec. 9 (Xinhua) -- Capital A Berhad (AirAsia Group Berhad) on Friday signed a joint venture agreement with Sivilai Asia to establish AirAsia Cambodia, a new low-cost airline in the kingdom.
The new airline will further cement AirAsia's brand in Cambodia and the region, providing AirAsia with greater access to its domestic market and most importantly connecting it to the international market across the Association of Southeast Asian Nations (ASEAN) and beyond, said a Capital A Berhad statement.
This new airline will allow the group to operate in the various existing markets where it already has a presence and operations to build scale, network connectivity and further reduce the cost of operations, the statement 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," it added.
Subject to obtaining relevant regulatory approvals, the joint venture is expected to commence operations in late 2023, the statement said.
Capital A Berhad CEO Bo Lingam said that during the pre-pandemic, AirAsia operated 90 weekly flights from Malaysia and Thailand and is currently flying about 49 weekly flights to Cambodia.
"Setting up a joint venture in Cambodia is in line with our ASEAN expansion strategy," he said. "We plan to operate mostly to our existing stations within the four-hour radius from the kingdom."
Capital A Berhad currently operates flights to Cambodia from Malaysia and Thailand, the statement said, adding that since entering the Cambodian market in 2005, it has carried over 10 million guests to and from Cambodia. ■