Cambodia to launch new carrier this year

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PHNOM PENH—Cambodia is expected to launch a new airline later this year after a deal was struck between one of the country’s biggest tycoons and Philippine conglomerate San Miguel Corporation.

Kith Meng, chairman of Royal Group — a hotel, media and telecoms empire — inked the deal late on Tuesday with the Manila-based firm, which already owns a controlling stake in Philippine Airlines (PAL), according to a statement.

The Cambodian businessman will retain a 51 percent share of the newly-minted carrier — Cambodia Airlines — the statement said, adding that the Philippine company will own the remaining 49 percent.

The new airline, the country’s second, will “contribute to Cambodia’s economic growth by creating employment opportunities, bringing investors and building a strong aviation industry,” Kith Meng said in the statement.

Royal Group’s chief financial officer Mark Hanna told AFP that domestic flights could begin as early as June this year with international routes expected to begin in October.

“There is a huge growth in tourism and that has a direct impact on aviation,” Hanna said, predicting the Cambodian aviation industry will surge over coming years.

The southeast Asian country launched its first national airline, Cambodia Angkor Air, in 2009, after a previous effort folded in 2001.

More than 20 foreign airlines, including Japan Airlines and Qatar Airways, currently operate flights to Cambodia.

San Miguel has been aggressively branching out into new ventures like oil refining, aviation, toll road operations, and power generation to beef up its core businesses that includes a brewery that is now in its 123rd year.

Last month the firm announced its consolidated net profit surged 57 percent to P27.6 billion ($677.55 million).

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  • pfc_kulapu

    BOTCOTT CAMBODIA..

    • loneylonski

      Botcott? Bakit naman?

    • foreignerph

      Botcott? Lol. You already have to “botcott” China and Malaysia. It’s going to be very busy in the PH, “botcotting” the entire world in the end…

    • don alto

      BOTCOTT : Is that a NEW WORD? …LOL!

  • txtman

    OPEN SKY POLICY NOW NA!
    INUUNA PA KASI ANG KAPAKANAN NG KKK
    KAYSA SA BANSA
    PITIFUL

    • makinagulingon_nasud

      HAHA SAN MIG GOT THE BEST PARTNER TO CLIMB INTO BED WITH–ITS EQUAL
      Australian-Cambodian tycoon Kith Meng—a dual Cambodian-Australian citizen with a BA from Australian National
      University. Kith Meng, aka “Mr Rough Stuff”, is described in the US
      cable as a “ruthless gangster” and “is notorious for using his
      bodyguards to coerce others into brokering deals”. (SAN MIGUEL??)

      As CEO of Royal
      Group of Companies, he runs the influential Cambodia Television
      Network, several gambling companies and is an “exclusive distributor of
      Canon products”. He owns 45% of ANZ Royal Bank, the local
      joint-venture of ANZ bank.

  • http://www.facebook.com/Boycott.Made.N.China Val Sor

    Don’t forget the Cambodia is a puppet of China.

  • http://www.facebook.com/Boycott.Made.N.China Val Sor

    Boycott China only

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