PAL Defers Cambodian Airline Investment

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Philippine Airlines has revealed that it will defer its investment in Cambodia Airlines due to political instability in Cambodia. 

pal a340
Copyright Photo: Angelo Agcamaran/PPSG
According to PAL President Ramon Ang, the deal with Royal Group of Cambodia needs to be reviewed given the current political climate. "We have delayed it because of the situation there," said Ang. "We are reviewing whether that project is still viable."

The Cambodia government has faced a public uprising with citizens of Cambodia calling for the resignation of Prime Minister Hun Sen following allegations that his government rigged the elections in July of 2013. 

Philippine Airlines had originally intended to close a deal with the Royal Group of Cambodia on October 15, 2013. The deal involved a $10 million investment in exchange for a 49 percent stake in Cambodia Airlines. Cambodia Airlines Co Ltd is currently wholly owned by Inter Logistics Co Ltd, a division of the Royal Group of Cambodia.
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5 comments:

  1. AnonymousJanuary 25, 2014 at 8:07 PM

    Word around the hangers is that PAL has no available money for investing in other carriers. Apparently, it has borrowed to the hilt and the banks won't lend it any more money.

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  2. Ian | GoingRoamingWanderingJanuary 25, 2014 at 8:20 PM

    And whatever happen to the Cayman Airways deal too? Care share the updates on these news too?

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    Replies
    1. AnonymousJanuary 26, 2014 at 12:27 AM

      There is a big chance that R.P. will be upgraded to Cat 1 by the F.A.A. In the near future. Therefore it does not need to invest on a small airline at this time. The plan was to use a small airline's staff & give them planes so Pal can expand flights to the U.S. using "Cayman" or Cambodia airlines. That was a loophole in the cat 2 policy

      Delete
  3. AnonymousJanuary 27, 2014 at 3:44 PM

    I think the deal was delayed because of political nature there..if the deal was close PAL will be receiving 300-400M dollars as shares from the new airlines able to back-up PAL's operations too..this is what other airline companies do..
    With regards to Cayman deal..it will push through if and only if PH will remain in Cat 2..pulling off PAL's investment in PH and transfer it to cayman islands...but i believe we will still be on category 2..so expect nio na na para ma save ng SMC ang kanilang investment sa PAL they have to push through sa Cayman Islands..

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  4. AnonymousJanuary 29, 2014 at 1:30 PM

    The Cambodian government is run by Vietnam. Cambodian Angkor air is owned by Vietnam Air. Vietnam Air/Angkor Air want to funnel people to their southern island and not places like Sihanoukville with its beach's and casino's. Cambodian Angkor Air only has three leased from Vietnam air turboprops for domestic flights. Cambodian Air want to expand flights and add $1.5 billion dollars in airplanes. Something doesn't smell very good with all this, can you find it?

    ReplyDelete

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