Search form

Login - Register | FOLLOW US ON

Logo of Phnom Penh Post newspaper Phnom Penh Post - Launch of Cambodia Airlines faces delay

Launch of Cambodia Airlines faces delay

A joint venture to get the country’s second major carrier, Cambodia Airlines, off the ground will be delayed by three months, according to a stakeholder disclosure statement.

Cecilia L Pesayco, assistant corporate secretary of Philippine Airlines Inc’s parent company, PAL Holdings Inc, said in a statement dated August 8 to the Philippine Stock Exchange that the closing date “for completion of PAL’s [Philippine Airlines] Joint Venture with Inter Logisticts (Cambodia) Co Ltd has been moved to October 15, 2013”.

The target closing date was initially July 15.

According to an earlier statement to the same stock exchange at the end of May, Philippine Airlines would invest $10 million for a 49 per cent stake in Cambodia Airlines, with the first $1 million due on the closing date last month.

The other 51 per cent would be owned by Inter Logistics (Cambodia), which is controlled by Royal Group of Companies chairman Kith Meng, the statement in May said.

David Pearson, group controller at Royal Group, said yesterday the completion was postponed because the regulatory process was taking longer, but that “it’s not a big deal”.

“There’s a lot of work involved in preparing to launch an airline but everything is [progressing] smoothly,” he said.

Pearson said the delay will not affect the first flights. He confirmed they will take off in the third quarter of this year.

The airline would compete against Cambodia Angkor Air, which has until now dominated scheduled domestic flights.

0

Comments

Please, login or register to post a comment

Latest Video

Phnom Penh eats: Ptas Nak Battambang

As the name suggests, Ptsa Nak Battambang – which in English means Battambang's house – is the right place for those who want to try some of the province's typical dishes in Phnom Penh.

Q&A with Pung Chhiv Kek, Cambodia’s first female doctor and founder of rights group Licadho

Last year, Pung Chhiv Kek was awarded the Legion d’Honneur, France’s highest decoration, for services to peace-building and human rights.

“Electric guitar is possible. Why not chapey then?”

After more than a millennium in existence, Cambodia’s traditional two-stringed chapey has finally gone electric.