San Miguel Corp., Cambodian Airlines set $1.5-B fleeting program

SMC president Ramon S. Ang. AP FILE PHOTO

MANILA, Philippines — Conglomerate San Miguel Corp. and its Cambodian partner are planning a $1.5-billion maiden fleeting program for their newly created Cambodian Airlines for the next two years.

About 16 to 22 aircraft would likely be deployed by Cambodian Airlines within the next two years, said Ramon S. Ang, president of San Miguel Corp. and flag carrier Philippine Airlines.

Last month, PAL struck a deal to help set up the new airline in Cambodia in partnership with local tycoon Okhna Kith Meng.

At the sidelines of the stockholders meeting, Ang said Cambodian Airlines would also enter into a “code-sharing” arrangement with PAL through which the local flag carrier could earn additional revenues of $300 to $400 million per year.

“Code-sharing” is a reciprocal agreement through which two or more airlines offer their passengers a single booking, ticket and check-in flight to a certain destination and only one of these airlines services them.