Cambodia air policy ends joint venture

Malaysian Helicopter Services is likely to end its involvement with Royal Air Cambodge now that Cambodia has indicated its willingness to introduce an open skies agreement.

Malaysian Helicopter chief and chairman of flag carrier Malaysia Airlines, Tajudin Ramli, said: 'I do not see the need for us to operate Royal Air.' Royal Air is a joint venture between the Cambodian Government and Malaysian Helicopter. The Malaysian Government entered into the deal because it would make it easier for Malaysian carriers to apply for permits to fly into Cambodia.

The deal also meant Malaysian Helicopter could lease two Boeing 737s to Royal Air, resulting in a management contract for Malaysian Airlines.

Now that an open skies agreement may create unlimited, unconditional access into Cambodia for Malaysian carriers, Mr Tajudin appears ready to end the deal with Royal Air.

Mr Tajudin said the open skies arrangement would mean he no longer needed to station people and equipment in Cambodia as part of the joint venture.