Cambodia Air deal being finalised
Philippine Airlines (PAL) announced on February 12 that a deal with the Royal Group of Cambodia (RGC) to form Cambodia Airlines Co. Ltd was underway despite a 7-month delay. In a filing to the Philippine Stock Exchange, PAL said that that “ongoing preparations for the completion of the contemplated joint venture agreement between PAL and Inter Logistics are currently being conducted.” Inter Logistics (Cambodia) Co. Ltd. is fully owned by RGC chairperson Neak Oknha Kith Meng.
Ramon Ang, president and chief operating officer of San Miguel Corporation, one of the owners of PAL apart from tycoon Lucio Tan, earlier said that PAL was “reviewing when to start [investing] and whether that project is still viable.” Ang also said that PAL was delaying moving forward as it studied the political situation in Cambodia.
PAL announced previously it was putting $10 million of equity for a 49 per cent stake in Cambodia Airlines, which would be 100 per cent owned by Inter Logistics (Cambodia) Co. Ltd. PAL was supposed to make a $1 million downpayment of the total acquisition cost based on completion of closing conditions that were set for July 15, 2013. The balance would be paid based on the board of Cambodia Air’s call.
The closing conditions for the deal included registration of PAL’s investment in Cambodia Air. Cambodia Air would also get the necessary franchises, permits, and licenses to operate and maintain an airline company. Cambodia Air should end up being a flag carrier, entitling the airline to traffic rights, as well as slots under the bilateral agreements of Cambodia and other countries.
To equip Cambodia Air, PAL would deploy 16 to 22 aircraft worth $1.5 billion. Around 8 to 10 would be deployed on Cambodia Air’s first year of operations.
Philippine Airlines (PAL) announced on February 12 that a deal with the Royal Group of Cambodia (RGC) to form Cambodia Airlines Co. Ltd was underway despite a 7-month delay. In a filing to the Philippine Stock Exchange, PAL said that that "ongoing preparations for the completion of the contemplated joint venture agreement between PAL and Inter Logistics are currently being conducted." Inter Logistics (Cambodia) Co. Ltd. is fully owned by RGC chairperson Neak Oknha Kith Meng. Ramon Ang, president and chief operating officer of San Miguel Corporation, one of the owners of PAL apart from tycoon Lucio Tan, earlier said...
Philippine Airlines (PAL) announced on February 12 that a deal with the Royal Group of Cambodia (RGC) to form Cambodia Airlines Co. Ltd was underway despite a 7-month delay. In a filing to the Philippine Stock Exchange, PAL said that that “ongoing preparations for the completion of the contemplated joint venture agreement between PAL and Inter Logistics are currently being conducted.” Inter Logistics (Cambodia) Co. Ltd. is fully owned by RGC chairperson Neak Oknha Kith Meng.
Ramon Ang, president and chief operating officer of San Miguel Corporation, one of the owners of PAL apart from tycoon Lucio Tan, earlier said that PAL was “reviewing when to start [investing] and whether that project is still viable.” Ang also said that PAL was delaying moving forward as it studied the political situation in Cambodia.
PAL announced previously it was putting $10 million of equity for a 49 per cent stake in Cambodia Airlines, which would be 100 per cent owned by Inter Logistics (Cambodia) Co. Ltd. PAL was supposed to make a $1 million downpayment of the total acquisition cost based on completion of closing conditions that were set for July 15, 2013. The balance would be paid based on the board of Cambodia Air’s call.
The closing conditions for the deal included registration of PAL’s investment in Cambodia Air. Cambodia Air would also get the necessary franchises, permits, and licenses to operate and maintain an airline company. Cambodia Air should end up being a flag carrier, entitling the airline to traffic rights, as well as slots under the bilateral agreements of Cambodia and other countries.
To equip Cambodia Air, PAL would deploy 16 to 22 aircraft worth $1.5 billion. Around 8 to 10 would be deployed on Cambodia Air’s first year of operations.
