MOU signing of acquisition of MASwings shares marks crucial step in establishing Sarawak’s own airline

Abang Johari (back row, fourth left) witnessing the MOU signing ceremony for the management of rural air services and shares acquisition of MASwings at BCCK on Oct 27, 2023.

By Shikin Louis and Karen Bong

KUCHING, Oct 27: The signing of a Memorandum of Understanding (MOU) today between the Sarawak government through Hornbill Skyways Sdn Bhd and Malaysia Aviation Group (MAG) to facilitate the acquisition of shares in MASwings has marked a significant milestone toward expediting the takeover of this exclusive airline and the realisation of Sarawak’s own airline.

Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg witnessed the MOU signing ceremony for the Management of Rural Air Services (RAS) by Acquisition of Shares in MASwings Sdn Bhd by three parties that took place at the Borneo Convention Centre Kuching (BCCK) here today.


Sarawak government was represented by permanent secretary to the Transport Ministry Sarawak Datu Ir Alice Jawan Empalng and Aviation Technical advisor Sio Yew Hua, while Hornbill Skyways Sdn Bhd was represented by its chairman Tan Sri Dr Abdul Aziz Hussain and its chief executive office (CEO) Captain Miron Kumer Ganguly, and Malaysia Aviation Group (MAG) by its group managing director Captain Dato Izham Ismail and its chief strategy officer Brian Foong.

Today’s MOU follows the initial MOU with the Federal government on July 20, 2023 regarding the takeover the management of RAS in Sarawak and Sabah.

In his speech, Abang Johari expressed confidence that Sarawak’s good relationship with the Federal government and MAG will enable it to conclude the negotiation and finalise the takeover very soon.

He emphasised that Sarawak remained steadfast to establish a State-owned airline, as air connectivity remains a vital enabler for the mobilisation of Sarawak’s people, economic activities, tourism, and support for investors and business communities.

“Sarawak is an island with an economy which is open and export oriented. We have no choice but to ensure good regional and international flight connectivity.

“Currently, Sarawak’s regional and international air connectivity is serviced by Malaysia Airlines, Firefly, AirAsia, Scoot and Batik Airlines. Nevertheless, this existing network is insufficient to meet the demands of the region,” he said.

Abang Johari added that Sarawak cannot depend on private airlines to meet the mobility demands of its people across Sarawak, Peninsular Malaysia, Sabah or even Singapore, as these commercial airlines are operating on a profit and loss basis.

He noted that the fare charges are sometimes beyond the affordability of Sarawakians, especially during the festive seasons.

“The objective is to expand air connectivity and regulate the aviation market and ensure a fair competition within Sarawak and the region. While it may not be profit-oriented, our ambition is clear, that is to serve our people better by ensuring affordable air fares.

“The Sarawak-owned airline will be a small boutique-sized carrier, that would cater to regional routes, with a range of 6 to 7 hours, reaching far into the East, Asean and domestic routes. We don’t want to go further than that. We will leave that to Malaysian Airlines,” he explained.

The objective will be on serving the people rather than pursuing profits, with the ultimate goal of offering affordable airfares.

Deputy Premier Datuk Amar Dr Sim Kui Hian, Transport Minister Sarawak Dato Sri Lee Kim Shin, Minister of Tourism, Creative Industry and Performing Art Dato Sri Abdul Karim Rahman Hamzah, Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki, Federal Transport Minister Datuk Hasbi Habibollah and MAG Group chairman Tan Sri Wan Zulkiflee Wan Ariffin were among those present. — DayakDaily