AirAsia parent Capital A to launch new airline in Cambodia

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AirAsia parent Capital A to launch new airline in Cambodia

PHNOM PENH PENH Reuters-Capital A, the parent of Malaysian budget carrier AirAsia, plans to launch a new airline in Cambodia with a domestic partner as it resumes expansion plans put on hold during the Pandemic, its chief executive said on Friday.

Capital A said AirAsia Cambodia, a joint venture with Sivilai Asia, would launch in the second half of 2023.

Capital A Chief Executive Tony Fernandes told reporters in Phnom Penh that AirAsia Cambodia is expected to have a fleet of 10 to 12 planes within a few years after it starts flying.

We wanted our growth story to start today in Cambodia. It was a long time coming, he said, in reference to the need to ground most of the carrier's 210 planes when demand plunged during the Pandemic.

Fernandes said AirAsia Cambodia, headed by Cambodian national Mam Vissoth, will focus on growing inbound tourism from places like China, South Korea, Southeast Asia and India.

Capital A said the fully paid-up capital requirement will be $25 million, with AirAsia using internal funds for its share of the equity investment.

Partner Sivilai was founded in January as a consultancy that aims to operate hospitality businesses in Cambodia.

Fernandes told Reuters last week that Capital A is looking to start a new airline in Vietnam to join its existing carriers in Malaysia, Thailand, Indonesia and the Philippines.

As part of a corporate restructuring designed to shed its status as a financially stressed firm, the company plans to combine its AirAsia aviation business with long-haul offshoot AirAsia X. The airline brands will be separate from each other.