Philippine Airlines (PAL) is revisiting its joint venture with Inter Logistics (Cambodia) Co. Ltd.
“We are reviewing when to start [investing]and whether that project is still viable,” said Ramon Ang, president and chief operating officer of PAL and San Miguel Corp. (SMC).
He added that, “We have delayed it because of the situation there [Cambodia].”
Earlier, the firms said that their joint venture has been moved to early fourth quarter of 2014 from the original July 15 closing date, parent firm PAL Holdings Inc. said in an earlier disclosure to the Philippine Stock Exchange.
PAL Holdings had said that the completion of the $10-million investment in Cambodia Air has been moved to October 15. The parent firm, however, did not elaborate on the postponement.
PAL earlier teamed up with Royal Group of Cambodia (RCG) in April known as Cambodia Airlines.
Under the agreement, the flag carrier would own a 49-percent stake in Cambodia Airlines while RGC headed by Neak Oknha Kith Meng as chairman would own the remaining 51 percent.
Currently, Inter Logistics owns 100 percent of Cambodia Air, while PAL has SMC and Lucio Tan as its major owners. PAL Holdings also disclosed that the amount of its investment in Cambodia Air was $10 million for a 49-percent interest in the company.
The 10-percent downpayment should have been paid on July 15, while the balance would be settled upon call of the board of directors of Cambodia Air.