Philippine Airlines says it will still pursue plans to
launch a Cambodian carrier with local partner, Royal Group, despite lengthy
delays, fears of political unrest and aviation industry skepticism over the
viability of another entrant into the small domestic market.
The Philippine news site ABS-CBN reported Philippine
Airlines (PAL) denied, last week, that it was shelving a joint venture deal
with Royal Group of Cambodia to form Cambodia Airlines.
“We wish to clarify that on-going preparations for the
completion of the contemplated joint venture agreement between Philippine
Airlines, Inc. and Inter Logistics (Cambodia) Co Ltd relating to Cambodia
Airlines Co Ltd are currently being conducted,” PAL said in a disclosure to the
stock exchange.
“As such, it is not true that the joint venture project has
been ‘shelved’,” it added.
PAL issued the clarification after Business Mirror quoted
the Center for Asia-Pacific Aviation (CAPA) as saying “PAL’s decision to shelve
and question the viability of its Cambodian joint-venture project is the right
move.”
“The group should focus on the Philippine market, where it
has opportunities, but challenges including stiff competition from low-cost
carriers. It should avoid the temptation of revisiting the Cambodian project or
pursuing any other potential overseas joint venture,” the CAPA said.
The centre is a highly reliable and respected source of
independent news and analysis on the region’s aviation.
Cambodia Airlines, which aims to become the country’s
second full-service carrier after Cambodia Angkor Air, was initially supposed
to launch services in mid-2013 with a US$1 million investment from PAL. But
after missing closing dates in June and October, the venture has yet to be finalized.
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