KUCHING, April 18: Bandar Kuching MP Dr Kelvin Yii has cast doubt on the Sarawak government’s plan to establish a boutique airline, as it may have a significant impact on the economic security and long-term economic sustainability of the state.
In the best interest of all Sarawakians, Dr Yii has also urged Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg and the Sarawak government to be transparent about their intention to establish a boutique airline, including the parties involved and to reveal the results of an economic feasibility and sustainability study, and a cost-benefit analysis.
“While I am supportive of what is good for Sarawak, especially to find ways to improve connectivity and stabilise tickets prices, I express some reservations on the idea of setting up Sarawak’s own airline, as it may not be sustainable and economically feasible and will come at a huge economic cost,” he said in a statement today.
He went on to say that while Prime Minister Datuk Seri Anwar Ibrahim has agreed in principle to the proposal, he believes it is in the best interests of all Sarawakians to be made more aware of the details, especially because running an airline business is difficult, not to mention highly regulated in terms of organisational structure, passenger safety regulations, and other aviation requirements.
“This decision may cost a lot of public funds to set up, as Sarawak may not have the economy of scale to keep it sustainable.
“If they were profitable, I am sure other airlines would have taken advantage of it and provided more such routes into and out of Sarawak,” he added.
Furthermore, Dr Yii stressed that the regional government should not be in a position where it must use substantial public funds to bail out the airline to keep it afloat should it fail to become sustainable.
“In principle, it should not be the business of the government to be in business.
“Their (The Sarawak government) role is to provide a conducive environment and ecosystem for businesses to thrive, or find ways to incentivise the private sector to come up with good and sustainable business plans for the people, rather than trying to start their own airlines,” he explained.
During yesterday’s inauguration of the Raia Hotel and Convention Centre in Kuching, Anwar essentially approved Sarawak’s proposal to establish its own boutique airline.
The matter will be discussed at Wednesday’s (April 19) Cabinet meeting, where the final decision will be announced, according to the Prime Minister. — DayakDaily
