By DayakDaily Team
KUCHING, March 21: The sale of MASwings to the Sarawak government is currently undergoing a process that requires some time, but the Malaysian Aviation Group (MAG) has stated that despite the challenges, they are committed to finalising the sale by the end of the year.
As reported by MalayMail today, MAG group managing director Datuk Captain Izham Ismail stated that the delay is due to the fact that it is a large undertaking, and the company wants to ensure that both parties benefit from the deal, as well as the consumers.
“MAG is steadfast in supporting the Sarawak government in fulfilling the agreement we signed in 2023 but all of us should acknowledge that a transaction of such a scale is not an easy task.
“It encompasses valuation, due diligence, and agreement from service providers that serve us currently,” he was quoted as saying in the news report.
Izham made the remarks at the launch of MAG’s annual report for 2023 held today in Kuala Lumpur.
“I have to say in any agreement it will typically take a year or more but in this case, it’s a very fast accelerated merger and acquisition and is unprecedented,” he added.
Meanwhile, group chief Strategy and Transformation officer Bryan Foong noted that they aimed to be out of MASwings by December.
“For us, we are working very hard to meet the timelines and expectations of Sarawak and there have been announcements of trying to secure something tangible by March and MAG not have involvement with MAS wings by the end of 2024. Those are the timelines that we are working towards.
“But I’ll say it takes both parties to work closely together to achieve that,” Foong remarked.
Following its takeover from Federal authorities, the Sarawak government plans to transform MASwings into a regional airline rather than a rural air service provider.
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg has said that the State wanted to expand its air connectivity to neighbouring regions, particularly Hong Kong and Shenzhen in China, Singapore, Indonesia, and other South-East Asian countries.
The Premier further noted that two state ministries, namely the Ministry of Tourism, Creative Industry, and Performing Arts (MTCP) Sarawak and the Ministry of Transport Sarawak (MOTS), are currently conducting due diligence on the matter. — DayakDaily
