Vietnam Airlines’ stake in Cambodia Angkor Air up for sale

• Apr 13, 2020

Vietnam Airlines, the 49 percent shareholder of the Cambodian national airline, Cambodia Angkor Air, has said that it is looking to divest its shares in the airline.

Cambodia Angkor Air currently has five A321 aircraft and is said to be currently in an advanced stage of negotiations to sell the aircraft and the stake to an undisclosed buyer, rumoured to a Cambodian registered private airline.

In its audited report for 2019, Vietnam Airlines has said that difficult operating conditions, stiff competition by home grown airlines has pushed the founding partner to opt for the sell decision.

But the challenge will be to find a buyer when airlines are grounded, and the Covid-19 shows few signs of receding in the short-term. 51 of the shares in Cambodia Angkor Air belongs to the Cambodian government.

This will be yet another failure for Cambodia’s aspirations to have its own flag carrier as previous joint ventures also failed, such as Royal Air Cambodge in the 1990’s. Then, it was a joint venture between the Royal Government of Cambodia and Malaysia Helicopter Services, the then owners of Malaysia Airlines.

Airline sources said that Cambodia’s inability to become a tourist destination in its own right is a big impediment to any national carrier.

Source: https://www.khmertimeskh.com/50712484/vietnam-airlines-stake-in-cambodia-angkor-air-up-for-sale/