VINCI in Cambodia - icy relationship thaws, as normal service is resumed

VINCI Airports, like all operators in the sector, has had its ups and downs over the years. Physical size doesn't protect you from events, and VINCI hasn't always been as big as it is today.

Its biggest problem recently has been that of its majority-owned subsidiary Cambodia Airports, which was all but booted out of the country consequent to the government's dissatisfaction about earnings versus expenditure on the airport estate.

While existing investments remained intact, VINCI was prohibited from bidding for lucrative new airport contracts at Phnom Penh and Siem Reap.

It looked as if the game might be up, but following a high level meeting between French and Cambodian government officials in Jan-2024 VINCI has regained territory. Its work is now capped by an invitation to take on the operational management of the new Phnom Penh Airport; one named Techo Takhmao, and of which the name "honours historical figures and the protective spirit of the region".

But one must not get carried away.

The celebrity World and his dog have jumped on the announcement without noticing the small print. VINCI will only be in a management role; it will still be a state airport - and VINCI will not only have zero financial input, but also no construction role either.

It is there to develop business, simple as that.

VINCI will be on notice for how it handles the management of the new airport, which opens in Sep-2025. Big traffic gains will be expected.

It will still be glad to be back, where it could be argued that it all started for VINCI in 1995 when it signed a contract through Cambodia Airports for the airports of Phnom Penh and Siem Reap.