Cambodian, Phl conglomerate sign deal to establish new airline

PHNOM PENH (Xinhua) - Cambodia Airlines, a majority-owned Cambodian company, and San Miguel Corp., the Philippines' most diversified conglomerate, on Tuesday signed a joint venture agreement to set up a Cambodia-based airline - Cambodia Airlines - to service domestic and regional flights.

The agreement was inked between Cambodian tycoon Kith Meng, president of Cambodia Airlines, and Ramon S. Ang, president of San Miguel Corporation and Philippine Airlines, under the presence of Cambodian Deputy Prime Minister and Cabinet Minister Sok An.

"These are exciting times for the local aviation industry," Kith Meng said at the event. "The establishment of a full-fledged Cambodia-based airline is a natural step for Cambodia."

The would-be airline will contribute to Cambodia's economic growth by creating job  opportunities, bringing in foreign investors and building a strong aviation industry, he said.

Under the agreement, Kith Meng will have a 51-percent controlling share in the joint venture, while San Miguel Corporation will hold the remaining 49 percent stake.

According to a joint press release, the deal is the largest known venture between the Philippines and Cambodia; however, the statement did not disclose the amount of investment in the airline project.

"This joint venture is another strategic move in San Miguel's continuing diversification into fast-growing industries and economies," said Ramon S.Ang. "It is also a testimony of our commitment to make a difference in any business that we participate in--whether it be in the Philippines or internationally."

He said the Philippine Airlines would bring in the expertise needed to build a world-class national carrier in Cambodia.  

Currently, besides the national flag carrier, Cambodia Angkor Air, there are 23 foreign airlines operating regular flights to Cambodia, according to the report of the state secretariat of civil aviation.