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Cambodia aviation outlook: rapid growth but challenges for local airlines as more start ups launch

Cambodia is experiencing another surge of start up activity with several airlines seeking to commence operations. Cambodia already has four local airlines, including two start ups from 2014, despite a relatively small market consisting of approximately 7 million annual passengers.

Cambodia’s aviation market has doubled in size over the past five years and will likely continue to grow rapidly, driven by surging inbound demand from China. However competition is intense, with Cambodia now served by over 30 foreign airlines, including 10 from China.

Cambodia may not be able to support more than four local airlines over the long term. The four existing airlines, none of which operate more than seven aircraft, lack the scale to compete effectively with foreign airlines, and the proposed start ups will face similar challenges if they succeed at launching services.

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