Sarawak’s airline ambitions set to take flight with MASwings shares acquisition MOU tomorrow

MASwings' ATR 72-500 aircraft (file photo).
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By Karen Bong

KUCHING, Oct 26: The Sarawak government’s phased acquisition of MASwings is set to commence tomorrow with the signing of a memorandum of understanding (MOU).

Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg is expected to officiate a MOU signing ceremony regarding the management of rural air services through the acquisition of shares in MASwings Sdn Bhd scheduled to take place in the late afternoon at Borneo Convention Centre Kuching (BCCK) here.

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The MOU involves the Sarawak government, Hornbill Skyways and Malaysia Aviation Group (MAG).

Frustrated with the lack of direct and reasonably priced air connectivity in Sarawak, Abang Johari initially proposed the idea of establishing Sarawak’s own boutique airline back in 2019.

But it was only in June 15 this year that concrete plans materialised following a proposal from the Federal government for Sarawak government to take over MASwings, which Abang Johari has agreed to.

However, Abang Johari insisted that two key conditions must be met including ensuring zero liability for Sarawak and that the airline must serve not only domestic routes but also regional routes outside Sarawak and Sabah.

During a townhall session in conjunction with Lan Berambeh Anak Sarawak 2023 in Kuala Lumpur on Oct 21, Abang Johari mentioned that the Sarawak government was still in the process of calculating the financial implications of the MASwings takeover.

In the process, the Sarawak government has also thoroughly conducted cost-benefit analyses and risk assessments to evaluate the feasibility of the acquisition.

A dedicated task force was also established to ensure Sarawak’s smooth acquisition of MASwings.

The Ministry of Transport Sarawak (MOTS) has also reached an agreement with MAG during a meeting on July 25 on the smooth acquisition without disrupting the operation of Rural Air Services (RAS).

Additionally, the parties also decided that a second MOU would be signed with MAG to facilitate a seamless takeover.

Abang Johari had shared that the main objective of having Sarawak’s own airline is not entirely driven by profit, but in recognition of the essential role air connectivity plays in meeting the needs of Sarawak’s people, including the business community and investors.

He also acknowledged the challenges faced by Sarawakians, especially students, during festive seasons when commercial airlines tend to increase airfare rates.

Abang Johari believes that Sarawak’s own airline will offer a solution by providing more affordable airfares during these peak travel times. — DayakDaily

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