By Simon Montlake, Forbes Staff

Cambodian tycoon Kith Meng, who runs banking-to-telecoms conglomerate Royal Group, is teaming up with Philippine Airlines (PAL) to launch a new carrier later this year. In a filing to the Philippine Stock Exchange, San Miguel, the part-owner of flag carrier PAL, along with billionaire Lucio Tan, confirmed the joint venture, in which PAL will hold 49%. The news was first reported Wednesday by the Philippine press. The new airline will be called Cambodia Airlines, not to be confused with state-owned Cambodia Angkor Air. A handful of private carriers also ply Cambodia‘s skies, but the market is dominated by regional carriers, mostly flying in from neighbouring Bangkok. A Cambodian startup would need to offer new routes or attractive discounts to compete with carriers like AirAsia and Bangkok Airways. San Miguel gave no details of how PAL would be involved in the new airline’s launch. San Miguel acquired 49% of debt-ridden PAL last year; Tan holds the majority share. Under new ownership, PAL has finally begun to upgrade its fleet and turn around its poor image. …read more

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