Air Asia Cambodia to Begin Scheduled Operations in Mid-2024

Cambodia’s subsidiary of the LCC Air Asia brand will commence operations on May 2 this year.

DALLAS Cambodia’s subsidiary of the low-cost carrier (LCC) Air Asia (AK) brand will commence operations on May 2 this year.

The Phnom Penh (PNH) based airline will use two Airbus A320-200s to operate scheduled flights on a triangular three-route network. It will offer flights from PNH to Siem Reap (SAI), PNH to Sihanoukville (KOS), and SAI to KOS. On March 18, Capital A, AK’s parent company based at Kuala Lumpur International Airport (KUL), and its affiliated sister airlines confirmed the start date for scheduled operations in Cambodia.

"Our vision is to transform the way people travel in Cambodia and make air travel an integral part of the country's transportation network," said AirAsia Cambodia CEO Vissoth Nam. "We are confident that AirAsia Cambodia will play a pivotal role in reshaping the country's aviation landscape, contributing to fostering the local economy by providing jobs to locals and unconditionally supporting Cambodia's government aspirations for economic growth and tourism development.”  Capital A said in a media statement.

Main Terminal Building and Tower at KLIA. Photo: By Craig - Own work, Public Domain, https://commons.wikimedia.org/w/index.php?curid=1366817
Main Terminal Building and Tower at KLIA. Photo: By Craig - Own work, Public Domain

A Joint Venture

AirAsia Cambodia is a 51/49 percent joint venture between Capital A subsidiary AirAsia Aviation Group and local hospitality group Sivilai Asia.

In a December 2022 Bursa Malaysia filing, Capital A said that the joint venture partners would provide an initial capital contribution of US$5 million to launch the LCC, with Capital A contributing US$2.55 million and Sivilai Asia putting up the rest of the money. At the time, Capital A said it expected AK's capital over the long term to increase to US$25 million.

Several carriers already operate scheduled flights in Cambodia. AK's Cambodian subsidiary will become the fifth scheduled passenger airline operating in the country. Other operators include Cambodia Airways (KR), Cambodia Angkor Air (K6), Lanmei Airlines (LQ), and Sky Angkor Airlines (ZA).

Capital A CEO Tony Fernandes foresees the new airline's fleet expanding to as many as 15 aircraft. He expects the Cambodian operation to extend its flights to additional regional destinations. Fernandes anticipates AK will focus on servicing routes within four hours of Cambodia's flying time.

Featured image: 9M-AJK AirAsia Airbus A320-200 WIMM KNO. Photo: Wilbert Tana/Airways

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