AirAsia Cambodia to launch in November, with MRO unit to follow

AirAsia Cambodia to launch in November, with MRO unit to follow

by Nathan Buabeng

In an effort to establish a joint venture for MRO in Cambodia, sibling business Asia Digital Engineering (ADE) will launch AirAsia’s branch there in November.

Parent company Capital A revealed the launch date in a stock exchange filing on September 20 along with plans for an ADE unit in Cambodia.

By the end of this year, Capital A had intended to launch AirAsia Cambodia, its sixth airline subsidiary in Southeast Asia, but was vague about a precise date.

Capital A’s airline division, AirAsia Aviation, owns 51% of the carrier’s shares, with 49% held by Sivilai Asia, a Cambodian company.

Additionally, Sivilai will invest in Capital A’s new MRO venture in the nation, acquiring a 40% interest; ADE will maintain the remaining shares.

According to Capital A, ADE would invest roughly $1.2 million in the new business over two installments utilizing internal cash from the company.

The impending launch of AirAsia Cambodia, according to Capital A, will “provide an opportunity for ADE to establish its operation in Cambodia by providing service to AirAsia Cambodia and other third-party airlines operating into Cambodia’s major airports,” explaining its motivations for establishing the Cambodian MRO company.

In order to optimize more productive, sustainable levels of operation and service for the [airline units], it continues: “The proposal will facilitate and expedite the consolidation of all of ADE’s resources and assets, which will allow Capital A to take advantage of cost-saving opportunities and potentially capture surpluses from new revenue streams generated.”

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