New National Airline in the Works for Cambodia

The Cambodian government and Indonesia’s Rajawali Corporation have agreed to join forces to create a new national airline to serve Cambodia’s burgeoning tourism industry. The Cambodian government will own 51 percent of the joint-venture company, while Rajawali Group will own the rest. In the mid-1990’s Cambodia inaugurated its own national flag carrier, Royal Air Cambodge, which went bankrupt, resulting in heavy losses for the government. The new carrier will inherit a brighter tourism picture—Cambodia attracted more than two million tourists last year, an increase of 19 percent over 2006. Even more promising is the increase of air travel to Cambodia in 2007, which grew more than 25 percent. 

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