A Change of Guard

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Thursday 2 May 2013

Cambodia Angkor Air plans network and fleet expansion ahead of PAL-backed Cambodia Airlines launch


Cambodia Angkor Air plans network and fleet expansion ahead of PAL-backed Cambodia Airlines launch
2nd May, 2013
Cambodia Angkor Air is planning rapid fleet and network expansion as competition intensifies in the Cambodian market. The Cambodian flag carrier is expected to more than double its fleet by the end of 2015 and launch services to several new markets, including mainland China, Hong Kong, India and South Korea. Cambodia Angkor Air was established in 2009 as a joint venture with Vietnam Airlines but remains one of the smallest flag carriers in Southeast Asia, only operating domestically and to two neighbouring countries.
Cambodia Angkor Air has already seen its most dramatic expansion in its four-year history, launching three international routes over the last six months. Further rapid expansion of Cambodia Angkor Air and the planned launch of a second Cambodian scheduled carrier that will be affiliated with Philippine Airlines (PAL) should lead to more rapid growth in the Cambodian market. The Cambodian passenger market grew by 18% in 2012 and by 21% in 1Q2013, based on figures from Cambodia Airports.

Cambodia Angkor Air looks to catch up with ASEAN peers

Cambodia Angkor Air currently accounts for only 15% of international capacity in Cambodia, lower than the home market penetration of any Southeast Asian flag carrier. It is also the smallest of Southeast Asia’s flag carriers based on fleet size and the second smallest based on seat capacity.
Southeast Asia’s flag carriers ranked by weekly seat capacity and fleet size: as of 1-May-2013
Rank Carrier   Weekly seats Number of aircraft   % of international seat capacity in home market
1. Singapore Airlines  546,000 126 40%
2. Malaysia Airlines 538,000 133 29%
3. Thai Airways 532,000 103 30%
4. Garuda Indonesia 478,000 88 16%
5. Vietnam Airlines 385,000 83 39%
6. Philippine Airlines 298,000 65  24%
7. Lao Airlines 32,000 21  43%
8. Royal Brunei Airlines   29,000 10  72% 
9. Cambodia Angkor Air 22,000 15% 
10. Myanmar Airways International   15,000 16% 
Cambodia Angkor Air currently operates a fleet of three A321s and two ATR 72s to only three domestic and three international destinations. It has a smaller share of capacity in Cambodia’s international market than close partner and shareholder Vietnam Airlines. Its 15% share is also only slightly larger than the 11% share from Bangkok Airways and AirAsia. Read the full article here.

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