Thailand's low-cost carrier One-Two-Go is expanding into Cambodia with plans to begin domestic and international services from Phnom Penh in early October.
Kampuchea Airlines, partly owned by One-Two-Go owner Thai businessman Udom Tantiprasongchai, will operate the One-Two-Go branded service. 'We'll start the services in the first week of October,' he said.
Starting with two Boeing 757-200s and one Boeing MD82, One-Two-Go Kampuchea initially plans to fly from Phnom Penh to Siem Reap, Bangkok, Hong Kong and Korea.
'We were planning to serve the Phnom Penh-Singapore route, but with Tiger and Jetstar planning to operate this route, we will have to wait and see,' Mr Udom added.
One-Two-Go Kampuchea will offer the same product and service as One-Two-Go Thailand which sells all seats on all flights for the same price. Other low-cost airlines raise prices as the number of available seats falls.
Setting up a sister carrier in Cambodia allows One-Two-Go to exploit national traffic rights which countries usually award to airlines registered locally. Malaysia's AirAsia has set up airlines in Indonesia and Thailand for the same reason.