AirAsia to Launch Cambodian Subsidiary

The budget carrier will connect Phnom Penh, Siem Reap, and Sihanoukville with more destinations around ASEAN and the wider Asia-Pacific region.

Photo: AirAsia

AirAsia Aviation Group Limited (AAAGL), the aviation arm of Capital A Berhad, has inked a joint venture agreement with Sivilai Asia to establish AirAsia Cambodia before the end of next year. The new low-cost airline will further cement AirAsia’s brand in Cambodia, providing AirAsia with greater access to its domestic market and connecting local travelers to international markets across ASEAN, North Asia, and beyond. 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.

The joint venture was signed by Tony Fernandes, CEO of Capital A, and Vissoth Nam, Director of Sivilai Asia, at Rosewood Phnom Penh. Subject to obtaining the relevant regulatory approvals, AirAsia Cambodia is expected to begin operations in late 2023. Fernandes said in a statement, “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.”

He added, “We are confident of profitability in the first year, as Cambodia is a market that is familiar to us and where we have deep infrastructure in place. That’s why all our future airlines will be based in ASEAN, as this is an area we know well and can derive quick profitability and connect our very large network to the main points of Cambodia, namely Phnom Penh, Siem Reap, and Sihanoukville.

AAAGL currently operates five routes to Cambodia. AirAsia Malaysia flies from Kuala Lumpur to Siem Reap and Phnom Penh, while regular services between Penang and Phnom Penh are slated to begin on January 23, 2023. Thai AirAsia also operates flights from its main hub at Bangkok Don Mueang to Siem Reap and Phnom Penh. Since entering the Cambodian market in 2005, AirAsia has carried over 10 million passengers to and from the country.

Share this Article

Related Posts

AirAsia Announces Three More Chinese Routes

Kuala Lumpur–based travelers will soon enjoy better connections to Chengdu, Guilin, and Quanzhou.

Cathay Pacific Relaunches Its Inflight Magazine

Hong Kong’s home airline hopes to give readers equal doses of “inspiration, delight, and discove...

Emirates Goes Digital for Flights Departing Dubai

Paper boarding passes have been largely phased out except in certain cases, including for customers ...

AirAsia Resumes KL–Shantou Flights, Eyes Kota Kinabalu–Beijing Route

Malaysia’s biggest low-cost carrier is harnessing the pent-up demand for overseas holidays among C...

Indonesia AirAsia is Launching Flights to Perth and Phnom Penh

Jakarta-based travelers bound for Western Australia or Cambodia will enjoy better air links this yea...

Etihad is Launching Nonstop Flights to Osaka

The national airline of the UAE will serve Kansai International Airport with a Boeing 787-9 Dreamlin...