Four more Chinese-backed airlines to launch within a year.

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Kung-fu Hillbilly
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Four more Chinese-backed airlines to launch within a year.

Post by Kung-fu Hillbilly » Fri Jun 15, 2018 4:38 am

Image

by Jennifer Meszaros

Despite a progressive shift toward deregulation and an influx of airline reforms, several Chinese investors are moving beyond their home turf and establishing new entrants on foreign soil. Cambodia State Secretariat of Civil Aviation spokesman Sinn Chanserey Vutha told AIN that four Chinese-backed carriers—KC International Airlines, Cambodia Airways, Domrey Angkor Airlines, and MJ Airlines—have reached various stages of applying for their air operator certificates (AOC) with plans to launch late this year or early next year.

If approved, the new entrants would bring the tally of Cambodia’s airlines to 11, a large number for a relatively small market consisting of roughly 8 million passengers.

“There are various challenges to setting up an airline in China, challenges that are not present in Cambodia," said Vutha. ‘‘With no foreign ownership control, Cambodia is very business friendly and an appealing market for aviation investors.’’

In recent years, Cambodia’s liberalized regulatory environment has enabled Chinese groups to launch airlines and/or forge joint ventures with Cambodian investors.

In 2014, two Chinese-backed carriers launched services: Cambodia Bayon Airlines—a wholly owned subsidiary of Bayon Holdings that enjoys financial backing from Aviation Industry Corporation of China’s Joy Air, and Bassaka Air, a joint venture between China International Travel Services and Hong Kong-listed NagaCorp.

Last year, two more Chinese-backed airlines launched operations—JC International, which operates a small fleet of five Airbus A320s, and Lanmei Airlines, which leases two A321s and one A320.

“Based on previous experience, investors must demonstrate that they have $25 million to $30 million for the first three years to cover operating costs,” said Vutha. “This does not include aircraft purchasing, and information, communication, and technology costs.’’

Like their predecessors, the new entrants concentrate on capturing the growing inbound Chinese travel market, which represents roughly 22 percent of Cambodia’s total passengers. Initially, the proposed startups must fly to other markets because Chinese regulators require foreign airlines to complete six months of flight and 1,000 cycles outside of China.

Overall, China has invested more in foreign airlines than any other country.

One particularly active investor—China’s HNA Group—either owns or holds stakes in 10 foreign airlines, including Hong Kong Airlines, Hong Kong Cargo, Hong Kong Express, Ghana’s Africa World Airlines, France’s Aigle Azur, Azul Brazilian Airlines, TAP Air Portugal, Virgin Australia, South Africa’s Comair, and Turkey-based MyCargo Airlines.

Smaller players such as China’s Spring Airlines maintain a joint venture in Spring Airlines Japan. China Eastern holds a 10 percent stake in Air France-KLM and Air China holds minority stakes in Cathay Pacific, Cathay Dragon (via its stake in Cathay Pacific) and a 31 percent share in Tibet Airlines. In turn, Lhasa-based Tibet Airlines holds a 49 percent stake in Himalaya Airlines.

Non-airline investors include China’s Henan Civil Aviation and Investment Company, which owns a 35 percent share in Luxembourg’s Cargolux. Chinese investment group CEFC China Energy holds a 49.9 percent stake in Czech charter company Travel Service, which owns 98 percent of Czech Airlines.

Meanwhile, China’s Hualing Group owns a clutch of investments in Georgia, including MyWay Airlines. The new startup recently launched its first charter flight from Tbilisi to Tehran with plans to offer scheduled international flights from May 2018.

https://www.ainonline.com/aviation-news ... oliferates#
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Re: Four more Chinese-backed airlines to launch within a year.

Post by bolueeleh » Fri Jun 15, 2018 8:32 am

idiot report, its not the small 8million KoW market they are after, its the 1.3billion market they are after :facepalm:
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Re: Four more Chinese-backed airlines to launch within a year.

Post by Duncan » Fri Jun 15, 2018 9:13 am

bolueeleh wrote:
Fri Jun 15, 2018 8:32 am
idiot report, its not the small 8million KoW market they are after, its the 1.3billion market they are after :facepalm:
With all the competition in the airline business my guess is there is more money to be made in setting up a airline and selling shares to investors , rather than hanging around for years for it to show a dividend by selling cheap tickets to fly on it.
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Re: Four more Chinese-backed airlines to launch within a year.

Post by Kammekor » Fri Jun 15, 2018 9:27 am

Good to hear some reputable airlines with an extensive network will come to Cambodia...

KC International Airlines, Cambodia Airways, Domrey Angkor Airlines, and MJ Airlines
</sarcasm>

Who needs more point to point connections, other than the Chinese for coming in and flying out?
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Re: Four more Chinese-backed airlines to launch within a year.

Post by CEOCambodiaNews » Fri Jun 15, 2018 1:27 pm

Original thread on the subject:
the-road/topic18500.html
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Re: Four more Chinese-backed airlines to launch within a year.

Post by Fourkinnel » Fri Jun 15, 2018 3:16 pm

Kammekor wrote:
Fri Jun 15, 2018 9:27 am
Good to hear some reputable airlines with an extensive network will come to Cambodia...

KC International Airlines, Cambodia Airways, Domrey Angkor Airlines, and MJ Airlines
</sarcasm>

Who needs more point to point connections, other than the Chinese for coming in and flying out?
Well at least the flying out part will be satisfying for some. Hopefully with more deportees!
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Re: Four more Chinese-backed airlines to launch within a year.

Post by Kung-fu Hillbilly » Fri Jun 22, 2018 3:43 am

New airline about to take off

Cambodia Airways, a locally owned airline with $200 million paid-up capital, will launch operations in the next few weeks, operating local and international routes, particularly to destinations in China, according to a representative of the Secretariat of State Civil Aviation.

“They are in the process of securing the AOC, which they should receive in the first week of July. If all goes as planned, they should start flying in July or August,” he said

https://www.khmertimeskh.com/50503667/n ... -take-off/
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Re: Four more Chinese-backed airlines to launch within a year.

Post by logos » Fri Jun 22, 2018 4:26 am

Duncan wrote:
Fri Jun 15, 2018 9:13 am
bolueeleh wrote:
Fri Jun 15, 2018 8:32 am
idiot report, its not the small 8million KoW market they are after, its the 1.3billion market they are after :facepalm:
With all the competition in the airline business my guess is there is more money to be made in setting up a airline and selling shares to investors , rather than hanging around for years for it to show a dividend by selling cheap tickets to fly on it.
Just like the bar business, the real money is selling it on to the next sucker.

Only difference is they sell $50 tickets rather than 50c beers, and the girls' uniforms tend to be more classy.

I'm eagerly waiting for angry birds airlines, after all isn't there an air force bar on 104 already?
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