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AirAsia Launches New Low-cost Airline In Cambodia

13 Dec, 2022

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

Operations are expected to commence in late 2023, subject to regulatory approvals.

The new airline will further cement AirAsia’s brand in Cambodia and Indochina, providing AirAsia with greater access to its domestic market and connecting it to the international markets across South-east Asia, North Asia and beyond.

AirAsia Cambodia aims to further stimulate the Cambodian aviation and tourism industries, launch new destinations, create jobs and bring a true low-cost operation to the country.

Tony Fernandes, CEO of Capital A said: “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.

“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.”

Vissoth Nam, director of Sivilai Asia added: “As one of the first countries to open up international travel with no quarantine in November 2021, Cambodia has led the way in (South-east Asia’s) air travel recovery journey post-Covid, with the rest of (the) countries in the region following suit.

“An increase in connectivity alongside best value fares, will certainly stimulate demand for air travel amongst the population due to increased airline and destination choices. This will open the doors for students travelling abroad, supporting work-related travel, boosting trade ties, and providing a welcome boost for the growth of new small and medium enterprises.”

Pre-pandemic, AirAsia operated 90 weekly flights from Malaysia and Thailand and is currently flying about 49 weekly flights to Cambodia.

Operating five routes to Cambodia from Kuala Lumpur to Siem Reap and Phnom Penh, from Penang to Phnom Penh (starting January 3, 2023) as well as from Bangkok (Don Mueang) to Siem Reap and Phnom Penh, AirAsia has carried over 10 million guests to and from Cambodia since entering the market in 2005.



TTG Asia

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