AirAsia has announced the launch of a new low-cost carrier AirAsia Cambodia.

AirAsia Aviation Group (AAAGL), Capital A and Cambodia’s Sivilai Asia’s aviation arm have invested $25 million to launch the airline with a fleet of Airbus A321 aircraft in late 2023.

“AirAsia Cambodia aims to further stimulate the Cambodian aviation and tourism industries, launch exciting new destinations, create jobs and bring a true low-cost operation to the country.”

“2022 was about restarting our airline to pre-Covid levels. That machine is in place and will be completed by the second quarter of 2023. The second half of 2023 will be when we focus on our continued efforts in growth.” said AirAsia founder Tony Fernandes.

AAAGL already operates five routes to Cambodia – Kuala Lumpur (KL)-Siem Reap; KL-Phnom Penh; Penang-Phnom Penh (starting in January), Bangkok (Don Mueang)-Siem Reap, and Bangkok-Phnom Penh.

“We plan to operate mostly to our existing stations within the four-hour radius from the Kingdom. AirAsia Cambodia will increase Cambodia’s network offerings by launching new services to Asean, North Asia and beyond in the future,” said AAAGL group CEO Bo Lingam.