_(1)_20260708131558_theedgemalaysia.jpg&w=1920&q=75)
KUCHING (July 8): AirBorneo Airways expects its commercial jet operations to turn profitable once the carrier reaches greater fleet scale, with chief executive officer Megat Ardian Wira Mohd Aminuddin saying the economics of the airline business improve as aircraft numbers and passenger volumes increase.
"The airline industry is about scale," he told a media roundtable in Kuching on Wednesday. AirBorneo will begin with two wet-leased Boeing 737-800 aircraft before expanding its fleet to five by the end of 2027, reaching nine jets by the end of 2028 and 17 jets by the end of 2030.
"To break even, you really have to have scale. You have to have passenger loads...a lot of passengers coming in. You have to have aircraft, which is your fixed costs," he said, adding that operating expenses such as ground handling become more efficient as the fleet expands.
Megat Ardian said the Sarawak-owned airline expects to see stronger economies of scale once its fleet reaches the low teens.
"I would think, roughly when we get to around the teens in terms of the number of aircraft, maybe about 13 or 14 onwards, that's when we see a lot more scale. I am not saying we only break even when we have 13 or 14 aircraft, but that's when we see much greater scale," he said.
AirBorneo will launch commercial jet services on July 20, expanding beyond its role as the operator of Sarawak's rural air services (RAS) network. The airline will initially operate twice-daily flights between Kuching and Terminal 1 of the Kuala Lumpur International Airport (KLIA T1), followed by a daily service to Singapore using two wet-leased Boeing 737-800 aircraft.
The carrier is offering introductory all-inclusive one-way economy fares from RM375 on the Kuching-Kuala Lumpur route for travel between July 21, 2026 and March 27, 2027.
The Sarawak government completed its acquisition of MASwings Sdn Bhd from Malaysia Aviation Group Bhd in January and subsequently rebranded the carrier as AirBorneo.