KUALA LUMPUR (April 17): Malaysia Aviation Group (MAG) is on track to hand over its rural service subsidiary MASwings to the Sarawak government on Jan 1, 2026.
The transfer following the sale and purchase agreement signed in February will not affect the group’s bottomline as MASwings operates as a non-profit public service, group managing director Datuk Captain Izham Ismail said at an earnings briefing.
“It is a zero-sum game to us,” though the handover alleviates MAG’s operational burden from having to manage MASwings going forward, he said.
MAG receives an annual incentive of around RM10 million while earning no revenue from operating MASwings that mainly services rural areas with turboprop aircraft, plying routes within Sabah and Sarawak on eight ATR 72-500s and six DHC- 6-400 Twin Otters.
MASwings, the sister company of national flag carrier Malaysia Airlines, currently serves 22 destinations including Brunei on code share with main bases in Kota Kinabalu and Miri.
Once the transfer is completed, the Sarawak government is expected to take over all operational responsibilities for MASwings, allowing MAG will focus on other aviation businesses under its portfolio — Malaysia Airlines, Firefly and Amal.