by DayakDaily Team
KUCHING, March 13: Democratic Action Party Socialist Youth (DAPSY) Sarawak raised questions on the rationale behind the Sarawak Ministry of Transport’s decision to purchase new aircraft for AirBorneo instead of continuing to lease them for the State’s rural air services.
In a statement, DAPSY Sarawak secretary George Lam highlighted the potential financial burden of over RM1 billion if the government were to fully replace the nine aircrafts leased from MasWing. He also called for greater transparency on AirBorneo’s funding sources.
This comes after the Sarawak Ministry of Transport announced that AirBorneo would purchase new ATR 72-600 aircraft to replace the currently leased ATR 72-500 fleet.
“I would like to question why the minister is rushing to purchase aircraft at the very beginning of establishing an airline instead of continuing to lease them for Sarawak’s rural air services.
“The minister has yet to disclose how many ATR 72-600 aircraft will be purchased to replace the soon-to-expire leased ATR 72-500 fleet,” he said.
Lam added, “However, according to my understanding, the cost of purchasing a single ATR 72-600 is estimated to be between RM115 million and RM140 million, depending on the airline’s cabin configuration requirements.
“For Sarawak, if the government intends to fully replace the nine leased aircraft from MasWing, the total cost would exceed RM1 billion, which would place significant financial pressure on the newly established airline.”
Furthermore, he pointed out that the minister had not revealed what type of aircraft would be used for medium- and long-haul flights.
“Will the aircraft be acquired through leasing or direct purchase? The difference between these two approaches lies in the amount of capital involved. If purchased directly, in addition to the need for fleet maintenance, the financial burden would be enormous. In contrast, leasing aircraft in the initial stage provides a certain degree of flexibility, requires less capital, and carries relatively lower risk,” he pointed out.
Lam also questioned the source of funding for the airline, stating that the Sarawak government has yet to disclose where the capital would come from.
“There has been no indication of private sector investment. Does this mean that the airline’s operating costs are entirely funded by Sarawak State Coffer?” he inquired.
“I would like to stress that both the establishment and operation of an airline require substantial funding. Therefore, the Sarawak government must maintain a high level of transparency on this matter and keep the people informed of any developments. The people have the right to know every detail about the government’s management of the airline,” Lam added. – DayakDaily
