By Shikin Louis
KUCHING, March 28: The upcoming Sarawak-owned airline, AirBorneo, will be able to succeed like other government-owned international airlines, such as Qatar Airways, Emirates, and Turkish Airlines.
In stating this, Sarawak Minister of Tourism, Creative Industry and Performing Arts (MTCP), Dato Sri Abdul Karim Rahman Hamzah, emphasised that private airlines typically depend on shareholder investments and rely on profit margins over several years to determine their viability and future expansion.
“However, AirBorneo is nearly 100 percent state-owned, and Sarawak is a rich State.
“If managed properly, with no mismanagement or overpricing of services—such as in-flight meals being sold at exorbitant prices—there is no reason why the airline cannot succeed.
“I’m very confident (with AirBorneo), looking at other airlines that are owned by other nations, such as Qatar Airways, Emirates, and Turkish Airlines—they are flying now, and they are doing very well,” he said in a video recording made available to the media today.
Nevertheless, he underscored that financial backing alone does not ensure success, stressing the need for strict management guidelines.
“We must have clear policies on investments, aircraft leasing or purchases, and hiring of management and crew.
“Just because it is government-backed does not mean we should offer excessively high salaries that could jeopardise operations,” he warned.
Abdul Karim also pointed to Singapore Airlines as an example of well-executed airline management.
“They are making substantial profits, and their employees receive bonuses of six to seven months’ salary. It all comes down to good planning and governance,” he said.
In a stern reminder, he cautioned against appointing leaders with self-serving interests.
“If the chief executive officer (CEO) or chairman’s priority is personal enrichment rather than growing the airline, then forget it—the airline will collapse no matter what,” he added. — DayakDaily
