18-3-2024 (PHNOM PENH) AirAsia’s Cambodia unit has commenced ticket sales for domestic flights as the budget carrier aims to extend its presence across the region and capitalise on the resurgence in travel demand.
The joint venture between AirAsia parent Capital A Bhd and Cambodian hospitality firm Sivilai Asia announced that its inaugural flight between Phnom Penh and Siem Reap is scheduled for May 2, as stated in a Monday release. The company plans to operate routes between the two cities, as well as to Sihanoukville, utilizing two Airbus A320 aircraft.
The commencement of flights comes over a year after the initial announcement, marking the group’s first foray into a new market since the pandemic severely impacted its finances, leading to the closure of units in India and Japan.
AirAsia, aspiring to become the world’s first low-cost network carrier, is already exploring further opportunities in the rapidly expanding Southeast Asian market. AirAsia founder Tony Fernandes has expressed interest in establishing units in Singapore and Vietnam, supplementing existing operations in Malaysia, the Philippines, Indonesia, and Thailand.
According to AirAsia Cambodia Chief Executive Officer Vissoth Nam, there has been “significant growth” in Cambodian air travel and tourism. Nam stated in the release, “Our vision is to transform the way people travel in Cambodia and make air travel an integral part of the country’s transportation network.”
The initiation of domestic services in Cambodia reinforces the positive outlook for Capital A, which remains classified as financially distressed by the Malaysian stock exchange. The company is in the process of merging AirAsia operations with its long-haul affiliate AirAsia X Bhd. Despite the challenges, it reported its first annual profit since the pandemic last year and anticipates returning its entire grounded fleet to service this year amidst robust demand and high airfares.
