Minister: MASwings takeover discussions still ongoing, interim subsidy for Rural Air Services extended

Anthony Loke Siew Fook
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By Shikin Louis

KUCHING, Oct 11: Discussions on the MASwings airline takeover are still ongoing, with finer details concerning operations and commercial agreement being finalised, says Transport Minister Anthony Loke Siew Fook.

He clarified that the current discussions involve primarily between the Sarawak government and Khazanah Nasional Bhd, alongside the Malaysia Aviation Group (MAG).

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“The discussions do not involve Malaysia’s Ministry of Transport (MOT), as MASwings operates under MAG, which Khazanah owns.

“This makes the current discussions a purely commercial matter between the Sarawak government and MAG.

“A deadline has been set for the negotiations to be completed by the end of this year, but the timeline remains flexible depending on the resolution of certain issues,” he said at a press conference after officiating the signing ceremony of a memorandum of understanding (MOU) for the Stage Bus Service Transformation (SBST) Programme in Kuching between the Federal government and Biaramas Express Sdn Bhd held at Raia Hotel here today.

Loke also said with the discussions on the MASwings takeover still ongoing, the Federal Cabinet on Tuesday (Oct 8) agreed to extend the interim subsidy for Rural Air Services (RAS) in Sarawak and Sabah—currently operated by MASwings—for another year.

The current subsidy agreement covers six years from Jan 1, 2019, and is set to expire on Dec 31, 2024.

“Since the discussions are still ongoing, we will continue to provide subsidies for RAS for another year.

“Once the MASwings takeover is completed, the government plans to renegotiate a longer-term deal for RAS.

“In principle, the federal government has no issue with continuing the subsidy worth RM209 million per year for RAS. That is our commitment,” he added. — DayakDaily

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