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   Vol. 14  No. 8
Tuesday January 27, 2015

Notes From Phnom Penh

Notes From Phnom Penh

     Talk about a tropical paradise of a different kind: Cambodia (or Pre_h Réachéanachâk Kâmp_chéa, as its official name goes) or most notably its capital, Phnom Penh is certainly a horse of a different color.
     When thinking of a tropical paradise, places such as Hawaii or maybe the resorts in Southern Thailand come to mind—warm, breezy, and clean getaway places for those who can afford air travel.
Phnom Penh is a tropical paradise, too, but one seen through the eyes of Charles Bukowski, whose L.A. underground newspaper column, “ Notes of a dirty old man” earned him a reputation as an “American primitive” writer as well as an FBI file.
     It would probably require the masterful, down-to-the roots language of a Donald Ray Pollock (“Knockemstiff”) to describe what Phnom Penh truly is.
     But Phnom Penh is more than the filthy back alleys and sunny Sisowath Quai Promenade, with its abundance of awesome restaurants (including the PP Foreign Correspondents Club, where the history of the Vietnam War was written up to a large degree) and its neocolonial Phsar Thmey (Central Market).
     The ancient Khmer culture, one of the world’s oldest, which managed the construction of Angor Wat 1,000 years ago, had a good run of bad luck in modern times: the atrocities committed by the Red Khmer under its leader Pol Pot (brother number one) in their attempt to create a totally agrarian form of communism, in which they evicted the cities and slaughtered almost one third of its population, is still present these days; that era was never closed for good.
     Many of today's leaders, including Head of State Hun Sen, came to power under the Red Khmer.
      With left-leaning politicians in Europe, the term “predator capitalism” is popular, a convenient scapegoat for the more complex misgivings of an unbalanced society.
     If such predator capitalism exists, it does in Cambodia, with a total negligence for the wellbeing of the average Cambodian citizen.
     There is no governmental health care system and even in the outskirts of Phnom Penh, more than a third of the population does not have access to sanitation, electricity, or running water. Interesting enough is that after the reign of the Red Khmer ended in 1979 and the constitutional monarchy was reestablished, the de facto power was held by the ruling Communist CPP (Cambodian People’s Party) under its leader Hun Sen, in power now for 25 years.
     Subsequently, do-gooding is good business in Cambodia—until recently, its streets were dominated by Toyota Landcruisers, Mercedes G, and Range Rovers of NGO’s of all kinds, and many 4 and 5-star hotels were booked solid with NGO personnel.
     Tourism started to boom in the “wild 2000’s,” as they are called there.
     Airlines such as Asiana, Korean Air, EVA Air and Condor started to add flights in order to meet growing demand. Also in regard to cargo:
     While Bangladesh is a known hotspot of cheap, cheaper, and cheapest garment production, Cambodia is even more so—and conditions in the factories are even worse, if such a thing were possible.
     Although Cambodia of course has its own currency, the Riel, any business transactions take place in USD, and ATMs in Cambodia dispense dollars.
     One will encounter Riel only when paying a bill and getting change—fractions of USD are made in Riel, one USD being 4000 Riel. And since the “liberalization” in 2009, brand stores have opened in abundance, something formerly unthinkable, with conditions for the average citizen having actually worsened.
     A burger and a coke at Burger King come at the expense of a whole day’s salary for a garment or construction worker.
     Cambodia is rated one of the most corrupt states of the world (ranked 156 out of 175 states as evaluated by Transparency International).
     The airline business has had a long stretch of bad luck as well.
     For decades, Cambodia had no flag carrier to speak of: Air Dream, Angkor Airways, Cambodia Airlines, First Cambodia Airlines, Kampuchea Airlines, Mekong Air, PMT Air, President Airlines, Royal Air Cambodge, Royal Khmer Airlines, and Royal Phnom Penh Airlines—all of them had a half-life of a few years at best, sprouting up and going under.
     A notable exception was Siem Reap Airways, which actually delivered a superior product and was managed well.
     However, Siem Reap Airways was an offshoot of Thailand-based Bangkok Airways and Bangkok Airways operated its aircraft.
     The maintenance as well as crew were Thai. Following the Thai-Cambodian tensions over the Pre_h Vihear temple, the Cambodian government revoked Siem Reap Airways AOC.
     The Cambodian Airspace used to be one of the most dangerous worldwide until the Cambodian State Secretariat of Civil Aviation (SSCA) entered into an agreement with the Thai Samart Corporation in January 2001, awarding Samart a 22-year license to operate the Cambodian ATC.
     Samart established a new firm; Cambodia Air Traffic Services Co., which initially took over responsibility for the PNH Flight Information Region, or FIR, followed by Aerodrome Control and Approach Control services at both Phnom Penh and Siem Reap international airports, as well as Aerodrome Control service at all other domestic airports in Cambodia.
     An Area Control Unit is operated in collaboration with Bangkok FIR.
     Likewise, the three international Cambodian airports—the capital airport Phnom Penh Pochentong International (PNH), Siem Reap International (REP), and Sihanoukville Kaong Kang (KOS)—are operated by CAMS–Cambodia Airport Management Services Ltd, which is a joint venture held 70 percent by the French VINCI group and 30 percent by Muhibbah Masteron Cambodia, a Malaysian-Cambodian joint venture.
     And the new Cambodian flag carrier, Cambodia Angor Air (K6), which started operations in July 2009, seems to do well—since it is also not managed locally but by Vietnam Airlines (VN) which is holding only a 49 percent minority stake while 51 percent is held by the Cambodian government. Its fleet of seven aircraft—four Airbus 321-200 (with two more on order) and three ATR72-500—is leased from Vietnam Airways.
     With three domestic destinations served (PNH, KOS, and REP) and seven International destinations (Thailand, China, and Vietnam with India, Singapore, Hong Kong, Japan, and Korea to be added in the foreseeable future) and load factors well above 79 percent, K6 will likely continue to be a success—unless the Cambodian government exercises too much influence, or fierce competition starts a price war.
     Although Cambodia Angkor Air currently enjoys a comfortable domestic monopoly in Cambodia, this will change soon. Cambodia Bayon Airlines (B9) is about to take to the skies, initially providing domestic services between PNH, KOS, and REP. And B9 is thinking big: China-based Joy Airlines (JR), which in turn is a joint venture of China Eastern Airlines (MU) and Chinese aircraft manufacturer AVIC, is backed by Xi’an; B9 has proposed a shuttle service between PNH and REP every 45 minutes with flights running between PNH and KOS twice daily. Starting with two AVIC Ark-60 before the end of 2014, the number is going to rise to five in 2015 with an additional 25 of the AVIC aircraft on order.
     While the improvements to the Cambodian Air transport sector made since 2001 are notable and thorough, the fact still remains that no Cambodian-managed enterprise has been successful so far, and that air transport as well as air transported products are not accessible to the vast majority of Cambodians.
     The Cambodian government is likely not a fan of the aforementioned Charles Bukowski (1920-1994), the German born American underground writer who used his poetry and prose to depict the depravity of urban life and the downtrodden, else they’d realize that, as Buk put it:
     “The shortest distance between two points is often unbearable.”
     The message here is that commerce and business should in its broadest means serve the needs of a nation’s citizens.
Jens

Editor's Note: All year long we faithfully report the news with much fondness for this industry we love. We originated the name Air Cargo News in 1975, when our publication was founded in New York City 40 years ago.
     In fact, we were the very first industry media to carry the title Air Cargo News.
     Our publication has existed for and about people, created by an ever involved and connected group of writers.
     We asked our editors to search around and write about something that personally has touched them, which they would like to share “in their own write.”
     First we traveled to Bali, Indonesia, where SkyKing wrote of the plight of the Manta Ray population that lives and shares the waters of that beautiful part of the world.
     Next we arrived in New York City and remember a favorite watering hole and some of the unforgettable characters, who populated the famed White Horse Tavern.
    Here, Jens takes a long and detailed look at Cambodia, a place where he spent his Christmas break 2014-15.


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