Local airlines to face headwinds

Cambodian airlines trying to grow and capture a slice of the more promising Chinese market will face stern competition from more-established international carriers, while new startups could struggle to gain a foothold in the Kingdom’s relatively small market, according to new research by the Centre for Aviation (CAPA).

All four of Cambodia’s local airlines – Cambodia Angkor Air, Sky Angkor Airlines, Cambodia Bayon Airlines and Bassaka Air – have made China a focus of their international expansion. However, the airlines lack the scale and resources to compete with the 10 foreign carriers that already provide air connectivity between the Kingdom and China, the Australia-based aviation research and consulting firm said in a report released yesterday.

“Cambodia may not be able to support more than four local airlines over the long term,” it said. “The four existing airlines, none of which operate more than seven aircraft, lack the scale to compete effectively with foreign airlines, and the proposed start-ups will face similar challenges if they succeed at launching services.”

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