PAL says Cambodia Airlines investment still on

Philippine Airlines (PAL) is reportedly still pursuing plans to launch a Cambodian carrier with local firm Royal Group, despite the lengthy delays, fears of political unrest and aviation industry skepticism over the viability of another entrant into the small domestic market.


PAL says Cambodia Airlines investment still on


Philippine Airlines (PAL) is reportedly still pursuing plans to launch a Cambodian carrier with local firm Royal Group, despite the lengthy delays, fears of political unrest and aviation industry skepticism over the viability of another entrant into the small domestic market. PAL denied it had shelved preparations for the Cambodia Airlines venture, according to local media reports which cited a Philippines Stock Exchange disclosure statement.

“We wish to clarify that on-going preparations for the completion of the contemplated joint venture agreement between Philippine Airlines, Inc and Inter Logistics (Cambodia) Co Ltd, relating to Cambodia Airlines Co Ltd are currently being conducted,” PAL’s statement, reported by Philippine news site ABSCBN, said. The affirmation comes after months of confusion over the project, to which PAL has committed US$10 million.

Cambodia Airlines, which aims to become the country’s second full-service carrier after Cambodia Angkor Air, was initially slated to launch in mid-2013 with a $1 million investment from PAL.

But after missing closing dates in June and October, the venture has yet to be finalised. Further doubts were cast in January when PAL president Ramon S. Ang told reporters that its investment deal would be deferred because of the situation in Phnom Penh. “We are reviewing it whether that project is still viable,” Ang had said. Protests took place in Phnom Penh as Cambodians called for the resignation of Prime Minister Hun Sen on allegations his government rigged the elections held in July last year and garment industry protests in January turned deadly as police cracked down on protesters.