Business | Capital A Group will invest in aircraft maintenance in Cambodia

0
538

[INNEWS Comprehensive Report] Recently, Asia Digital Engineering Pte Ltd (ADE), a subsidiary of Capital A Bhd, signed a joint venture agreement with Sivilai Asia Co Ltd to establish a maintenance, repair and replacement parts (MRO) business in Cambodia.

Capital A Group said that ADE will invest 60% in the Cambodian joint venture ADE (Cambodia) Co., Ltd., while Sivilai Asia will invest 40%, mainly promoting aviation engineering, maintenance, parts and warehouse services in Cambodia, including maintenance, repair and overhaul Services etc. ADE will also inject up to US$1.2 million (RM5.6 million) in two tranches, the first before the establishment of the company and the remainder after the establishment of the company, while ADE will use internal funds as its share of equity investment.

It is understood that Sivilai Asia is a consulting and management company aiming to launch hotel business in Cambodia in 2023. Capital A has established an associate company, AirAsia (Cambodia) Co., Ltd., to open an AirAsia-branded airline in Cambodia and will begin operations in November 2023. This will create opportunities for ADE to operate in Cambodia, servicing Cambodia AirAsia and other third-party airlines operating from major Cambodian airports.