One of Cambodia Angkor Air’s regional ATR-72 aircraft chartered from Vietnam Airlines Vietnam’s state-controlled national carrier, Vietnam Airlines, has finally ended operations in Cambodia after being pressured by losses from Covid-19 restrictions and weak air travel. The airline said it would completely withdraw from participation in Cambodia Angkor Air, which was established in 2009 by the Cambodian government and Vietnam Airlines in a 51:49% partnership with an initial capital of US$100 million. Cambodia Angkor Air aims to replace Royal Cambodian Airways, which ceased operations in 2001…
Vietnam’s state-controlled national carrier, Vietnam Airlines, has finally ended operations in Cambodia after being pressured by losses from Covid-19 restrictions and weak air travel.
The airline said it would completely withdraw from participation in Cambodia Angkor Air, which was established in 2009 by the Cambodian government and Vietnam Airlines in a 51:49% partnership with an initial capital of US$100 million.
Cambodia Angkor Air aims to replace Royal Cambodian Airlines, which ceased operations in 2001, as the country’s national airline, focusing on tourist routes serving Southeast and East Asia, most notably for tourists in the northern Cambodian temple town of Siem Reap Catering Services. All of its fleet and most of its employees are leased from Vietnam Airlines.
Plan to sell stake from 2020
However, the outbreak of the Covid-19 pandemic has dashed hopes of a profitable business with tourists and regional expansion, and Vietnam Airlines has already said in 2020 that it intends to sell its stake in the Phnom Penh-based airline.
Vietnam Airlines, however, said in a Ho Chi Minh City stock filing that Vietnam Airlines took the first step to sell a 35 percent stake in Cambodia Angkor Airways to an undisclosed buyer for $35 million. Just started selling shares. exchange. The remaining 14% will be sold by the end of the year, it added.
Vietnam Airlines as a whole has been hit hard by the pandemic. Its accumulated losses climbed to VND21.98 trillion ($955.6 million) last year, roughly the same as its charter capital.
