Philippine Airlines defers Cambodian joint venture. Does Cambodia (or PAL) need a new carrier?

Philippine Airlines (PAL) has shelved its planned affiliate in Cambodia nine months after signing a joint venture agreement with a local partner to launch Cambodia Airlines.

Cambodia Airlines was intending to compete in Cambodia's tiny domestic market, which is now only served by Cambodia Angkor Air, and the country's fast-growing international market starting with a new link to PAL's hub in Manila. But its launch, originally planned for mid-2013, was repeatedly delayed as the PAL Group and parent San Miguel re-examined the viability of the project.

The deferral and likely abandonment of the project makes sense as establishing a new carrier in Cambodia would be a risky proposition. The Cambodian market is growing rapidly but is unlikely to support a second full-service carrier. For PAL the group has a lot on its plate and does not need the distraction of an overseas venture.