Indonesia`s Rajawali to establish airline in Cambodia

11/26/07

Jakarta (ANTARA News/Asia Pulse) - Indonesia's Rajawali Group and PT Ancora Internasional, in cooperation with the Cambodian government, will establish a Cambodian flag carrier, based on a memorandum of understanding signed in Phnom Penh last week.

Rajawali and Ancora will have 49 per cent of the shares and the Cambodian government would hold majority shares of 51 per cent, Rajawali managing director Darjoto Setyawan said.

Details including the investment cost had yet to be studied, Setyawan said.

Source: Business in Asia Today - NOVEMBER 26, 2007
published by Asia Pulse

Cambodia to set up new national airline

Cambodia's Deputy Prime Minister Sok An (R) signs with Peter Sondakh (L), chairman and chief executive officer of Rajawali Group, the agreement for a new national flag carrier in Phnom Penh November 23, 2007. The Cambodian government and two Indonesian partners agreed on Friday to set up a new national flag airline to serve the country's fast-growing tourism industry. REUTERS/Chor Sokunthea

Nov 23, 2007
DPA

Phnom Penh - The Cambodian government signed an agreement with two Indonesian companies Friday to establish a national airline, six years after its former national carrier went bankrupt.

'Today we signed to establish a national carrier with the Rajawali Group and the Ancora International company, which are joint venture companies from Indonesia,' Cambodian Deputy Prime Minister Sok An told reporters after the signing in the capital.

The announcement came exactly two weeks after Prime Minister Hun Sen publicly signalled his impatience with the long delay in setting up the national carrier as Cambodian tourism figures rose 19 per cent in the first three quarters of 2007 and vowed to negotiate a deal himself if necessary.

The new carrier is scheduled to begin operations in six months, with its planes provided by the private companies, according to the public statement.

The Cambodian government will hold a 51 per cent stake and receives 30 per cent of profits and operations will be handled by a chairperson appointed by the Cambodian government, Sok An said, but other key positions will be filled by the companies themselves.

Cambodia has been without a national carrier since Royal Air Cambodge went bankrupt in 2001 and negotiations with private airlines to set up a joint deal managed under government auspices have dragged on since 2002.