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Tue, 13 December 2022

Capital A Partners Sivilai Asia to Launch AirAsia Cambodia

(13/12/22)  AirAsia Aviation Group, part of Capital A, has signed a joint venture agreement with Sivilai Asia to establish a low cost airline in the Kingdom of Cambodia.

AirAsia Cambodia will enable the group to expand passenger and cargo operations in the country as well as across the ASEAN region and beyond.

The JV was signed by Tony Fernandes, CEO of Capital A, and Vissoth Nam, Director of Sivilai Asia, at the luxurious Rosewood hotel in Phnom Penh.

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

Vissoth Nam (left), Director of Sivilai Asia, with Tony Fernandes, CEO of Capital A. Click to enlarge.
Vissoth Nam (left), Director of Sivilai Asia, with Tony Fernandes, CEO of Capital A

“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,” said Tony Fernandes. “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. 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.”

“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,” said Vissoth Nam. “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.”

AirAsia 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.

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

Since entering the Cambodian market in 2005, AirAsia has carried over 10 million guests to and from Cambodia.

See also: HD Video Interviews from Cambodia Travel Mart 2019.

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