AirAsia to launch new low-fare carrier in Cambodia

AirAsia Aviation Group is set to launch a new low-fare carrier, AirAsia Cambodia, in a joint venture with Sivilai Asia. Operations are expected to commence in 2023. 

The joint venture agreement was signed by the CEO of Capital A, Tony Fernandes, and Vissoth Nam, Director of Sivilai Asia.

The new airline will seek to further cement AirAsia’s brand in Cambodia and Indochina, expanding its domestic network and further connecting it to international markets across North Asia.

It will also further reduce the cost of operations for AirAsia Aviation Group, as well as allow the Group to build network connectivity and the scale of its operations, and stimulate the Cambodian aviation and tourism industries. AAAGL currently operates five routes to Cambodia, one of which (Penang to Phnom Penh) will commence on 3 January 2023.

Tony Fernandes commented on the Group’s focus on ASEAN (Association of South Asian Nations) countries, stating that it intends for all future airlines to be based in this region. “Capital A continues to focus on ASEAN where we know best, and our brand is the strongest. […] The value of AirAsia’s network is an insurmountable asset; [this low-fare airline] will be another flag of extensive connectivity in Cambodia and into the region, namely China, India and North Asia.”

According to Bo Lingam, Group CEO of AAAGL, AirAsia is currently flying about 49 weekly flights to Cambodia. “Setting up a JV in Cambodia is in line with our ASEAN expansion strategy. We plan to operate mostly to our existing stations within the four-hour radius from the Kingdom,” he said. “We are excited about the prospect of delivering the best-value low-cost air travel connectivity, experience and convenience to the seventh largest country in ASEAN.”