KUALA LUMPUR (Feb 12): The Sarawak state government on Wednesday unveiled its new airline AirBorneo, making the state the first in Malaysia to own an airline.

The announcement came after the Sarawak government entered into a sale and purchase agreement with the Malaysia Aviation Group (MAG) to formalise the acquisition of MASwings, the sister company of Malaysia’s flag carrier Malaysia Airlines.

“By taking this strategic step, we are positioning Sarawak as an aviation hub for Borneo and gateway to Asean, opening doors to new opportunities and fostering greater connectivity and accessibility to both domestic and international destinations that will benefit our local communities and businesses alike,” said Sarawak Premier Tan Sri Abang Johari Tun Openg at the signing ceremony in Kuching.

AirBorneo is poised to create a balance between connectivity, affordable fares and economic benefits, said the Sarawak premier.

“Operating as a full-service carrier (FSC), AirBorneo can significantly enhance the passengers’ experiences through superior in-flight services. This will emphasise the regional prestige of Sarawak as a premium travel destination,” he noted.

Abang Johari said that AirBorneo will continue to focus on rural air services before expanding further in the future.

“It will be engaging in strategic partnership and code sharing agreements with other international airlines including Malaysia Airlines, to further expand the network reach and improve global connectivity for Sarawak,” he said.

It is understood that Sarawak wants AirBorneo to also fly internationally, including to Germany, South Korea, Japan, Hong Kong and Thailand, according to Bernama. Sarawak had also proposed for a new international airport in Kuching for better connectivity.

Abang Johari, meanwhile, stressed that the state will need to continue collaborating with MAG to ensure a smooth handover, minimise disruptions and maintain high service standards.

“These include continuing to promote Sarawak as a destination of choice for tourists and businesspeople alike, to attract more visitors to Sarawak and Sabah and boost both the tourism and business sectors,” he added.

Under MAG, MASWings mainly serviced rural areas with turboprop aircraft, plying routes within Sabah and Sarawak on eight ATR 72-500s and six DHC- 6-400 Twin Otters. The company currently serves 22 destinations including Brunei on code share with main bases in Kota Kinabalu and Miri.

The takeover of MASwings is the latest in Sarawak’s quest for more autonomy. Sarawak had recently wrestled gas distribution rights in the state from national oil and gas company Petroliam Nasional Bhd (Petronas).

Sarawak previously also set sights on owning its own bank, before settling for a 31% stake in Affin Bank Bhd (KL:AFFIN).

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