Overflight fees set to increase

[PHNOM PENH POST]

CAMBODIA may raise fees for planes moving through the Kingdom's airspace after granting Cambodia Air Traffic Services Company permission to increase the fees by 5.5 percent.

Cambodia's overflight fees are low, and will remain low, compared to other countries in the region, Soy Sokhan, undersecretary at the State Secretariat of Civil Aviation, said yesterday.

“The price of overflight in Cambodia will still be lower than other countries even after we increase the price,” he said.

Increased fees will not affect plane ticket prices, Soy Sokhan said, adding that airlines wishing to raise ticket prices must first get approval from the State Secretariat of Civil Aviation.

The new revenue will pay for improved flight monitoring systems which are upgraded annually, Soy Sokhan said, though he was unable to confirm yesterday the exact fee CATS was to charge. Training for staff, as well as the increasing cost of oil used to run the systems, will be covered by higher fees, he said.

The increase could have some affect on the tourism industry, according to experts.

The price of package tours to Cambodia would likely rise as a result, Ang Kim Eang, president of the Cambodian Tourism Association, said yesterday.

Although overflight fees have remained relatively low compared to other developing countries, airline operators have long complained that Cambodia's airport tax is relatively high, he said.

Shares in Samart Corporation Pcl, the Thai parent company of Cambodia Air Traffic Services Company, saw a 3.3 percent jump in Bangkok on Friday, closing at 9.30 baht (US$0.31) after announcing Cambodian approval for the fee rise.