Mekong Airlines has delayed its reopening once again, due to uncertainties with a Malaysian investors’ group tentatively commissioned to lift the flailing airline off the ground, a Mekong Airlines official said Sunday.
The airline suspended all flights in May due to financial stress incurred by the global outbreak of severe acute respiratory syndrome. Its closure left more than 100 people unemployed and the airline thousands of dollars in debt.
Asia Aircraft Services, a Malaysian company, had agreed to invest $15 million in Mekong Airlines to relaunch the Phnom Penh-based service.
But Mekong Airlines President Heath Shen said Sunday that the contract was never signed and the airline would not start up for another month. “We’ve put the Malaysian group on hold pending the possibility of a better offer. For the time being, two are pretty solid offers. We have one other that’s interested,” Shen said.
A memorandum of understanding with Asia Aircraft Services was put in a holding pattern when the company failed to deliver money needed to relaunch the company, Shen said. He said Mekong will wait a month to weigh its options before signing with Asia Aircraft Services.
The airline initially was due to reopen in July, but shareholders became concerned about Cambodia’s unpredictable and possibly volatile political environment around the July 27 national election, Shen said. He said all travel agents and parties owed money will receive payment once the airline is flying again.
