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NEWS UPDATES Asean Affairs        2  April 2011

Air France returns to Cambodia

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Air France KLM’s return to Cambodia after 37 years of no flights reconnects two countries with close historical ties, but also reflects the growing economic importance of the region.

Asia as a whole is “growing extraordinarily,” CEO Pierre-Henri Gourgeon said. For that reason, and France’s history with Cambodia, the move is a “natural” one for Air France KLM. “Certainly this business [in Indochina] is attractive for the future,” he said.

Air France’s inaugural flight to Cambodia, number 274, touched down at Phnom Penh International Airport on Friday. It was the first of its kind from any European carrier since the Khmer Rouge took the city in 1975.

The company will start with three round-trip flights a week, with a stop in Bangkok. But Gourgeon said he hopes to see direct flights between Paris and Phnom Penh in five or so years.

The CEO wouldn’t offer an expectation of revenues from the new route, but he did say it would take “a year, maybe less” before it was profitable. He added it was because, while businessmen may put the route to use immediately, it usually takes time for consumers to incorporate it into their vacation plans.

“But we are optimistic enough to think it’s worthwhile,” Gourgeon said, “and we see the future for a profitable route.”

He also said he plans to eventually add flights to Siem Reap, a major tourist destination in the Kingdom. When asked why Air France didn’t start with flights to the Angkor Wat area, he said he thought it had to do with issues with local Cambodian operators.

“From what I understand, it’s not feasible yet,” he said.

Minister of Tourism Thong Khon yesterday welcomed the flights and the potential growth in tourism that they could offer by making travel from Europe more convenient.

“European tourists like to visit Cambodia because we have Angkor Wat, beaches and ecotourism areas,” he said, adding that while the Kingdom’s economy doesn’t benefit directly from the new flights, it does benefit from the increased spending brought by tourists. France was the largest European source of tourists to Cambodia in the first two months of 2011.

Ang Kim Eang, President of the Cambodian Association of Travel Agents, said the flights, coupled with the visa exemption for visitors from ASEAN countries, “will bring Cambodia further inflows of tourists.”

Deputy Prime Minister Sok An said he saw Air France’s return as a sign the global community increasingly feels comfortable doing business in the Kingdom.


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ASEAN  ANALYSIS

This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More

 

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