MANILA - Philippine Airlines (PAL) on Wednesday said it is pursuing the completion of its investment in a Cambodian airline despite delays in the closing of the deal.

In a disclosure to the Philippine Stock Exchange, PAL said there are "on-going preparations for the completion of the contemplated joint venture agreement between Philippine Airlines, Inc. and Inter Logistics (Cambodia) Co., Ltd. relating to Cambodia Airlines Co. Ltd. are currently being conducted."

PAL also denied a newspaper report quoting the Centre for Asia-Pacific Aviation (CAPA) that the joint venture project has been "shelved".

Last month, PAL president Ramon S. Ang told reporters that its investment deal with Royal Group of Cambodia (RGC) would be deferred because of the situation in Phnom Pehn.

"We are reviewing it whether that project is still viable," Ang had said.

A 'people power' uprising took place in Phnom Penh as Cambodians called for the resignation of Prime Minister Hun Sen on allegations his government rigged the elections held in July last year.

Ang had said the investment deal with RGC to form Cambodia Airlines Co Ltd was supposed to close on October 15, 2013. PAL aimed to complete the joint venture with Cambodia's Inter Logistics (Cambodia) Co Ltd (ILC) on July 15 that same year.

PAL had said it would invest $10 million for a 49-percent stake in Cambodia Airlines, which is 100 percent owned by ILC, which in turn is owned by RGC's Neak Oknha Kith Meng.

PAL was supposed to make a down payment of $1 million upon the completion of the closing conditions. The balance of $9 million should have been paid at the discretion of the Cambodia Air board.

Among the closing conditions include the registration of the investment of PAL in Cambodia Air and its procurement of the necessary franchises, permits, and licenses to operate and maintain an airline.

By Darwin G. Amojelar, InterAksyon.com

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