Tuesday, 28 July 2009

Cambodia gets national carrier with Vietnam's help

Reuters - Monday, July 27

PHNOM PENH, July 27 - Cambodia launched a new national carrier on Monday, a $100 million, three-aircraft venture set up in a bid to boost the tourist sector with the help of Vietnam Airlines.

Cambodia will hold 51 percent of Cambodia Angkor Air and Vietnam Airlines the rest.

The airline will operate domestic flights from Cambodia's capital, Phnom Penh, to Siem Reap, site of the Angkor temples, the country's biggest tourist destination, and to the coastal tourist town of Sihanoukville.

"The government is investing to facilitate the company's flight operations to carry tourists for competitive fares, to attract more visitors," Prime Minister Hun Sen told a crowd at Phnom Penh International airport.

The new airline will initially operate with two ATR 72 planes and is scheduled to get an Airbus A321 in September.

It was looking to expand commercial flights to Vietnam and another neighbouring country, Laos, and hoped to increase its fleet to 10 by 2015, said Vietnam Airlines Executive Director Pham Ngoc Minh.

Vietnam and Cambodia are traditional rivals, and Vietnam's deputy prime minister, Truong Vinh Trong, said at a signing ceremony on Sunday evening that the airline was not just a rare joint investment, but a way to "improve the two Asian neighbours' bilateral relations".

Cambodia has had no national carrier since Royal Air Cambodge went bankrupt in 2001 with estimated losses of $25 million.

In 2007, Indonesia's Rajawali Group signed a deal with Cambodia to establish a flag carrier and planned to begin flights in mid-2008, but the deal was cancelled because of the global economic downturn.

Cambodia welcomed 2.2 million tourists last year.

Tourism brought in the equivalent of 13 percent of gross domestic product in 2005 to 2007, according to the International Monetary Fund.

The sector had been growing at around 18 percent a year before the global financial crisis but growth in the sector is likely to be only 5 percent this year, according to tourism officials.

The IMF has forecast that Cambodia's economy could shrink 0.5 percent this year, hurt by a drop in tourism and a slowdown in garment exports.
(Reporting by Ek Madra; Additional reporting by Nguyen Nhat Lam in Hanoi; Editing by Alan Raybould)

1 comment:

Anonymous said...

Since 2001, Thai company SAMART, monitors civil and military air traffic in Cambodia via its 100% owned subsidiary
Cambodia Air Traffic System (CATS). With such a brand name, Cambodia can have the impression of having its own air
traffic control company. Previously, this activity was handled by Aerothai.
Last year, with the Preah Vihear clashes, Cambodia planned to have some Chinese fighters for October 2008! Beyond
being open to ridicule, wouldn't we have to ask the Thai the authorisation to take off ?
For this sensitive area, why not chose a partnership with countries such as NZ, Australia, Japan ...? Are they less open
to bribery and corruption?
Phnom-Penh signs numerous bilateral air traffic agreements. In exchange of direct access to Siem Reap for foreign
carriers, Khmer carriers can land in major cities in China, Thailand, Japan ... except there are no Khmer companies!
With the Cambodian open-sky policy at Siem Reap, none survived. If this policy kept on, preliminary studies showed a
new airport is requiredfor Siem Reap. But the question is, do we need direct international flights to Angkor Watt * ?
To pretend having Khmer carriers and justify reciprocities, companies with Khmer names are created. Angkor Airways or
Siem Reap Airways, affiliated to foreign companies. In this way, Bangkok Airways provides odd equipment and airplanes
to its subsidiary Siem Reap Airways. The company met no international standards. Since November 2008, it is on the
blacklist of he European Community. Under pressure, it is banned from flights, even in Cambodia. Especially after the
accidents of another Cambodian blacklisted carrier PMT air.
With 51% of the shares, the Cambodian government is launching the new national flag carrier Cambodia Angkor Air. Will
Vietnam Airlines, its partner, take care of the Aviation in Cambodia? Currently, to go to Xième-riep or Xiemrep (English
version), this “national flag company” offers on-line booking only in Vietnamese or Vietnamized English. Let's be tolerant
with the small Vietnamese company SNT (if one can talk of company) in charge of the web site.
Bangkok Airways and Vietnam Airlines already account for 40% of the Khmer sky. Even for the domestic flights; from
Phnom Penh to Siem Reap, Bangkok Airways alone provides four daily departures. Thanks to the Cambodian
Government, the neighbors will eventually control everything. Cambodia has nothing to worry about. It just has to be
content with its Number One position in Asia, for unsafe airlines.
To build the new Bangkok airport fit for the Airbus A380, loans were granted by international banks and agencies as
Thailand presented itself as the unavoidable regional hub to meet the increasing traffic due to among other things, the
influx of tourists to Angkor Watt. The return on investment is practically guaranteed.
3.3 million Passengers in 2007 and 3.2 in 2008. Without competing with anyone and instead of a considering a new
airport at Siem Reap that serve neighboring countries, can't we get loans for our own national hub to cope with (or easy
expendable for) wide-bodied aircraft? Which means sufficient runway and taxiways that do not require delicate
maneuvering (therefore, long and costly and hence uninteresting commercially) for a 747?
Do we just want to accommodate marginal flights or inaugural 747 flights like so far? Just to demonstrate a 747 can
come? If so, then Pochentong is actually fine. But how about a traffic with 747s or Boeing 777-300s at its MTOW
(maximum takeoff weight) for Europe? Do we offer optimal conditions for fluid, efficient and safe commercial operations?
How many carriers are willing to try?
Should we wait people to buy cars before building a road or should we build the road and bet that people will buy cars?
Should we wait forever for honest and capable leaders to come? Should we educate them or should we find a
way to choose better ones?
Democracy, freedom, education, justice and public health are the foundation for sustainable developments.