July 27, 2009
Hanoi - Vietnam and Cambodia have signed an agreement to establish a joint airline, a Vietnamese official said Monday.
'Although there are 14 airlines operating in Cambodia, we value the potential of this market in the future, so we decided to invest,' said Vietnam Airlines spokesman Trinh Ngoc Thanh.
The signing ceremony to establish Cambodia Angkor Air was held Monday in Phnom Penh between Vietnam Airlines and the Cambodian government.
The new airline has initial capital of 100 million dollars with Vietnam Airlines holding 49 per cent of the shares and the Cambodian side the rest.
The airline began advertising several weeks ago and staged its first flight Monday on its Phnom Penh-Siem Reap route, which it is to fly four times per day. On Tuesday, it plans to commence flights once per day between Ho Chi Minh City and Phnom Penh.
The airline operates two ATR72 turpoprop aircraft and one Airbus A320.
Cambodia Angkor Air plans eventually to increase its fleet to eight airplanes and begin flights to other countries in South-East and East Asia.