AirAsia Looks to Expand into Cambodia, Looking for Local Partner

News in Asia
AirAsia Looks to Expand into Cambodia, Looking for Local Partner

AirAsia, a low-cost airline from Malaysia, is eyeing expansion into Cambodia through partnership with a local player. AirAsia Group acknowledges Cambodia's potential in air travel and tourism and is eager to get its fair share.

Together with Myanmar and China, Cambodia is one of the three Asian countries where AirAsia is considering a local affiliate. Tony Fernandes, AirAsia CEO and co-founder, has recently admitted that the failure to set an affiliate in Vietnam pushed the company to explore other destinations in the region.

Cambodia looks promising to AirAsia thanks to its tourism potential. AirAsia is now in search of a 'right partner' in Cambodia to proceed with the project. Currently 49 airline companies fly to different destinations in Cambodia with the majority of them being foreign carriers. The number of home-grown airlines is constantly increasing, too, thanks to the growth of Cambodia's popularity in terms of tourism – the Kingdom is the third fastest growing destination in SEA after Vietnam and Indonesia. Last year, the Kingdom with the population of 16 million people welcomed 6.2 million guests with 6.7 million expected this year.

While AirAsia does already serve routes to Cambodia, it does not yet have a local affiliate in the Kingdom similar to other countries in SEA like Indonesia, Thailand or Philippines.



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