Cambodian new national airline [owned and run by the Yuons] makes profit

24 December 2009
AFP

PHNOM PENH: Cambodian Prime Minister Hun Sen on Thursday said the country's new national airline, Cambodia Angkor Air, had begun to turn a profit, raising hopes it would not fail like its predecessor.

The airline, which has capitalisation of US$100 million, was launched in July following the failure of a previous effort in 2001.

Cambodia Angkor Air, a joint venture between the government and Vietnam Airlines, aims to promote Cambodia as a destination and boost tourism.

"We expected the airline to make losses for two years, but now this airline is making profit because a lot of passengers are using it," Hun Sen said during a provincial ceremony.

The last national carrier, Royal Air Cambodge, folded in 2001 after running up losses of US$30 million.

Cambodia Angkor Air flies between tourist hub Siem Reap and Vietnam's Ho Chi Minh City.

Tourism is one of the only sources of foreign exchange for impoverished Cambodia, which is recovering from nearly three decades of conflict that ended in 1998.

The kingdom aims to lure three million tourists annually by next year, and in 2009 attracted more than two million holidaymakers.

A number of foreign airlines, including Japan Airlines and Qatar Airways, currently operate direct flights to Cambodia.

Half Vietnamese-owned "Cambodia Angkor Air" to fly tomorrow

Cambodia Angkor Air will fly tomorrow

Jul 27, 2009
By Reinhard Hohler
eTN Ambassador

According to media sources from Phnom Penh, a signing ceremony was held on Sunday by Cambodia and Viet Nam on the establishment of the Cambodian Air Carrier, which is a joint venture between Vietnam Airlines and the National Cambodia Air Carrier, namely Cambodia Angkor Air (CAA).

"The Vietnamese side has invested a capital of US$100 million in Cambodia Angkor Air," said Mr. Sok An, Deputy Prime Minister and Minister in charge of the Council of Ministers, at the signing ceremony, which was presided over by Prime Minister Hun Sen and visiting Vietnamese Deputy Prime Minister Truong Vinh Trong, who is also the representative of the Prime Minister of Vietnam.

"Cambodia will have [a] 51 percent share, and the Vietnamese side controls 49 percent," Mr. Sok An said, adding that the new Cambodian airline will help to push the tourism sector in the kingdom, while the world has met with the global economic and financial crisis. The Vietnamese investment on Cambodia Angkor Air will be processed for 30 years, Mr. Sok An said.

Meanwhile, Vietnam has also invested another US$100 million to open the Bank for Development and Investment of Viet Nam in Cambodia.

These investments show the confidence from the Vietnamese side on the economic growth of Cambodia, Mr. Sok An said, adding that it is the pride of the country that they have our own national flag air carrier. He stressed that the new airline will launch the official flight tomorrow.

Prime Minister Hun Sen said at the ceremony, "I would like to urge the new Cambodia Angkor Air to strengthen the management on safety and security for all travelers."

Additionally, Dr. Thong Khong, Cambodian Tourism Minister, told reporters that tourism is one of the key sectors in the country saying, "This year we expect to have [a] two to three percent increase on this sector." For the first six month of this year, the tourism sector decreased about one percent across the country. However, in the capital of Phnom Penh, it has increased 14 to 16 percent so far.

Last year, Cambodia achieved about two million foreign tourists.