The government has announced that they will not hold the 100 percent stake on the national flag carrier Cambodia Angkor Air, which is now facing turbulent times with the minority partner putting its stake for sale, including its five aircraft.
The national flag carrier, Cambodia Angkor Airline is a joint venture with Vietnam Airline.
Cambodia Angkor Air was formed in 2009 with an initial capital of $100 million and uses Phnom Penh International Airport as its main hub with Siem Reap International Airport as a secondary hub along with Tan Son Nhat International Airport in Vietnam.
It has a fleet strength of seven, comprising four Airbus aircrafts and three ATR turbo props, though the announcement by Vietnam Airlines last week said it had five Airbus jets.
Sin Chansereyvutha, spokesperson of the State Secretariat Civil Aviation (SSCA), said yesterday that Cambodia Angkor Air has sold their stake to new investors.
“Angkor Air has three parties involved, including the government that holds a stake of around 30 percent, local private investor hold around 20 percent and Vietnam Airlines holds 49 percent,” Sin said.
“Now, new investors have acquired the stake of Vietnam Airlines and the private sector too. The government’s stake in the airline remains unchanged.and the structure will not change until the deail has been signed and shares have been transferred,” Mr Sin said.
He added that the government has no plan to control the Cambodia Angkor Air. It is the national flag carrier,a joint venture between the public and private sector.
“Our government’s policy is not a monopoly practice, so they (Cambodia Angkor Air) have to compete with another local airlines, but the government has many measures to sustain the Cambodia Angkor Air and growth compared to local airlines. But we cannot mention the strategy. The intervention to the each company must work carefully,” Sin added.
Tek Reth Samrach, chairman of Cambodia Angkor Air, confirmed with Khmer Times that Vietnam Airlines had already reached a purchasing agreement with the airline with an unnamed Chinese company.
He said that there were three companies that had shown their interest in negotiation for purchasing a stake in Angkor Air but now only one Chinese company that has reached agreement.
“The agreement has been completed since before Chinese New Year, but everything has now been stuck due to the COVID-19 pandemic,” he said. “It shows the normal operation of the company and that the sale of the purchasing stake has been happening.” Tek declined to disclose the value of purchase, saying that it is an internal agreement by shareholders.
Cambodia Angkor Air launched a direct flight to the coastal Vietnamese city of Danang last November, aiming to attract more tourists from Vietnam to Cambodia.
- Tags: Cambodia Angkor Air