Royal Air Cambodge's brochure from the 60s - with full map of Phnom Penh

New Cambodia National Airline

May 13, 2008
By C Mahida
Posted at nubricks.com

While Cambodia’s history has been one of highs and lows, it seems that the prospects look good for this South East Asian country with signs of a surge in tourist visitors and prompting the Cambodian government to release news of its plans to re-launch a national carrier to promote air travel and more flights to Cambodia.

The news of a deal with Indonesian giant Rajawali to develop a new Cambodian national carrier has been greeted with surprise given that the government’s early attempt at such a venture collapsed with massive losses in 2000. However, using the strength and experience of massive conglomerate Rajawali, there are genuine hopes that this new airline venture will be a success. Recent figures show that the country had over 2 million visitors in 2006, 60% of whom travelled by air – creating a large base for the national carrier to tap into.

Dubbed the ‘New Thailand’, Cambodia offers the opportunity to experience virgin beaches and undiscovered landscapes to date as yet untainted by tourism development. General tourism numbers in Cambodia are also on the up with a 20% increase reported in 2007 alone. The main hub of the Cambodian tourist sector seems to be Sihanoukville where the natural terrain and beautiful beaches such as Serendipity Bay are attracting large numbers of foreign visitors eager to be one of the first to experience South East Asia’s newest hotspot. While the Cambodian authorities are desperate to develop the country’s tourism economy, they are also acutely aware that there is a need to consider the environment and the long term implications making an investment in a tourist based property development in Cambodia something of a long term venture.

Whilst the development of Cambodia’s tourism sector will move at a slower pace than many investors would hope, the wider impact upon the country’s economy should be rapid. As local economies around the country continue to benefit from the growing numbers of tourists visiting, there will be more money for the population to spend and many are expecting a steady rise in property prices. The policies of the government and controlled growth of the economy are vital not only to the country as a whole, but the property sector in particular.

Property prices at the moment are relatively low, the norm for emerging markets but when compared to other similar regions of the world and there is the potential for long term capital gains and substantial rental income in the medium to longer term. A new national carrier is the first step for Cambodia along the road to tourism success.

Government Inks Deal on National Airline

By Chun Sakada, VOA Khmer
Original report from Phnom Penh
10 April 2008

Cambodia has signed an agreement with an Indonesian company to bring back a national airline, following the bankruptcy of Royal Air Cambodge in 2001.

The government signed a deal with the Rajawali Group, which plans to invest $50 million in a 49 percent stake in the airline, according to a joint statement Thursday.

The advent of a national carried is hoped to bring a rapid increase in tourism, Council Minister Sok An said in the statement.

Cambodia saw more than 2 million visitors in 2007, and the government expects 3 million by 2010 and 5 million by 2015.

Cambodia, Indonesia's Rajawali to set up airline

JAKARTA, April 10 (Reuters) - The Cambodian government and Indonesia's Rajawali Corporation agreed on Thursday to set up a new national flag airline to serve Cambodia's growing tourism industry, the company said in a statement.

The joint-venture company's capital is estimated to reach $50 million and the Cambodian government will own 51 percent while Rajawali Group will own the rest.

"With a national flag carrier, we envisage our economy and tourism industry will grow rapidly," Cambodia's Deputy Prime Minister, Sok An, said in the statement released by Rajawali.

Cambodia launched its own national flag carrier, Royal Air Cambodge (RAC), in the mid-1990s but it went bankrupt, resulting in heavy losses for the government.

The new carrier, however, might have a better chance due to the rising number of tourists to Cambodia. In 2007, the country attracted more than 2 million tourists and more than 60 percent of them used air travel.

The number of tourist arrivals in 2007 rose almost 19 percent from the previous year and air travel increased more than 25 percent, according to the tourism minister on the official Web site www.mot.gov.kh.

Rajawali was founded by Indonesian entrepreneur Peter Sondakh, ranked by Globe Asia magazine as 19th wealthiest Indonesian with a net worth of $510 million. The group controls diversified businesses from a cement firm to department stores and a taxi company.

It holds an around 25 percent stake in Semen Gresik SMGR.JK, Indonesia's largest cement maker. Rajawali also founded the country's third-largest mobile phone firm before selling its stake to Telekom Malaysia and Emirates Telecommunications.

(Additional reporting by Tyagita Silka) (Reporting by Nury Sybli, writing by Tyagita Silka, editing by Sugita Katyal)

Khmer Intelligence News - 13 December 2007

Evidence of Keat Chhon's role as Pol Pot's assistant (1)

There is evidence to prove that Cambodian Finance Minister Keat Chhon was a close assistant to Khmer Rouge top leader Pol Pol. For instance, on 30 November 1975, Keat Chhon sent, in the form of a telegram, a report to Pol Pot about "the withdrawal of people from the East to the North". In his report, Keat Chhon mentioned several districts, especially Chhlaung, in Kratie province, which he is a native of. [There is currently a "Keat Chhon University" in Chhlaung]. Keat Chhon signed his telegram by writing only "Chhon". But Pol Pot had only one close assistant whose given name is "Chhon" and who is a native of Chhlaung district in Kratie province.

In other telegrams from the same period of time, a Khmer Rouge commander is referred to as "Pauk", but the whole name of the notorious commander is Ke Pauk, who was in charge of the Northern region.

Source: Yale Cambodian Genocide Project Resources. The Pol Pot Files, 1975-1977.

Norodom Ranariddh at odds with Kem Sokha (1)

Human Rights Party (HRP) President Kem Sokha earlier this week asked Beehive Radio Station, which sells airtime to political parties, to stop broadcasting programs from the Norodom Ranariddh Party (NRP) because Prince Ranariddh's supporters had accused the HRP leader of corruption when he headed the Cambodian Center for Human Rights (CCHR). Sixteen former CCHR employees, including prominent journalists and lawyers, are also accusing Kem Sokha of stealing their salaries and committing other dishonest acts. They have issued several statements to denounce Kem Sokha's corruption and have filed complaints against him at the Court (see KI, 27 October 2007: "Attempt to cover up corruption scandal"; KI, 27 September 2007: "Hun Sen holds Kem Sokha hostage").

There is a leaflet about the HRP, which reads: "He used to steal his employees' salaries; he is now seeking opportunities to steal the whole country; he has formed a shady party to earn his living through corruption under the banner of human rights."

See leaflet in Khmer by clicking here.

Six Funcinpec MPs to defect to NRP (2)

By the end of January 2008, at least six Funcinpec National Assembly members (out of 26) will defect to the Norodom Ranariddh Party (NRP), thus showing their allegiance to their historical leader, Prince Norodom Ranariddh who now heads the NRP. Any defector must reasonably wait until 27 January 2008 before changing side. The election law stipulates that National Assembly members can leave the party under the banner of which they were elected, without losing their parliamentary seat, if their defection takes place less than six month before the next elections (the next legislative elections will be held on 27 July 2008).

Dubious partnership bodes ill for national carrier (2)

To replace the defunct Royal Air Cambodge, the Cambodian government decided last month to launch a new national flag carrier by associating itself with two dubious partners from Indonesia: Rajawali Group and PT Ancora International. The CEO of PT Ancora International is Ith Vichit, who was the Chairman of Royal Air Cambodge. After six years away from Cambodia (since Royal Air Cambodge was declared bankrupt), Ith Vichit has managed to make a comeback and to position himself as a possible CEO for Cambodia's new national carrier. But Ith Vichit is widely seen as the person who had done the most, through corruption, to slowly kill Royal Air Cambodge from 1995 to 2001.

Government Plans to Re-Open Official Airline

Mean Veasna, VOA Khmer
Original report from Phnom Penh
12 September 2007

Cambodia has long been without an official airline, but officials said Wednesday they hope to change this.

Authorities hope a new national carrier will cash in on the country's growing tourism industry, which is one of its most important economic engines.

Tourism Minister Thong Khon said Wednesday that the Cambodian government was preparing to renew efforts for an airline.

"But it is searching for a suitable partner," he said.

National carriers in the past have been plagued by inefficiency and perceived safety hazards.

The last national carrier, Royal Air Cambodge, claimed bankruptcy in October 2001. The company reportedly owed a Malaysian share partner $30 million.

In one memorable mishap, a Royal Air Cambodge flight scheduled to fly former king Norodom Sihnouk out of the country was over-fueled. The wide puddle of jet fuel left on the tarmac was a lasting image for many would-be fliers.

Cambodia to establish nat'l air carrier [-Another money-losing company?]

Sep 4, 2007
AFP

PHNOM PENH - CAMBODIA hopes to establish a national airline in the near future in a bid to take advantage of rising regional tourism, Prime Minister Hun Sen said on Tuesday.

The country's last national carrier, Royal Air Cambodge, was shuttered in 2001 after running up losses of US$45.7 million.

Since then, several other domestic airlines have failed to get off the ground, allowing at least 10 foreign carriers free reign to take advantage of lucrative tourist routes both within Cambodia and abroad.

'I am waiting for more negotiations, but don't let this carrier end up like Royal Air Cambodge,' Mr Hun Sen said at a meeting between the private sector and government officials.

It is unclear when a new airline might be formed, or by whom, but Mr Hun Sen said talks were underway between the government and prospective airline companies.

The premier downplayed the effect losing Cambodia's national carrier had on tourism, which remains one of the few sources of revenue in the country.

Some 1.7 million visitors came to Cambodia in 2006, and the country looks set to surpass that total this year, according to tourism officials.

But a national carrier would also help promote Cambodia's tourism potential, as well as encourage visitors to remain longer in the country, travel industry officials say.

Domestic air routes are expected to prove vital to developing some of Cambodia's more remote locations, as well as encouraging travelers to seek sights beyond the famed Angkor temples in north-west Cambodia which remain its most popular tourist draw.

'National carriers are an important tool for promoting destination tourism for any country,' said Ho Vandy, president of the Cambodian Association of Travel Agents.

'The private sector is glad to hear this news - we have long expected to see Cambodia with its own airline,' he added.

Cambodia to establish national air carrier, says PM [-Another financial fiaso looming?]

PHNOM PENH (Thomson Financial) - Cambodia hopes to establish a national airline in the near future in a bid to take advantage of rising regional tourism, Prime Minister Hun Sen said Tuesday.

The country's last national carrier, Royal Air Cambodge, was shuttered in 2001 after running up losses of 30 million dollars.

Since then, several other domestic airlines have failed to get off the ground, allowing at least 10 foreign carriers free reign to take advantage of lucrative tourist routes both within Cambodia and abroad.

'I am waiting for more negotiations, but don't let this carrier end up like Royal Air Cambodge,' Hun Sen said at a meeting between the private sector and government officials.

It is unclear when a new airline might be formed, or by whom, but Hun Sen said talks were underway between the government and prospective airline companies.

The premier downplayed the effect losing Cambodia's national carrier had on tourism, which remains one of the few sources of revenue in the impoverished country.

Some 1.7 million visitors came to Cambodia in 2006, and the country looks set to surpass that total this year, according to tourism officials.