By Marlynda Meraw
“As we have long recognised, control over our air services is essential—not just for facilitating passenger transportation but as a catalyst for economic growth. AirBorneo is poised to create balance between connectivity, affordable fares, and economic benefits.” Abang Johari (February 12, 2025)
THE story of AirBorneo begins with a vision of Sarawak taking charge of its skies, charting its own future, and connecting its people and economy in ways that truly reflect its unique identity.
As Sarawak maps its trajectory forward, the need for tailored, reliable air connectivity has become increasingly apparent. Seamless regional and international links are essential not only for fuelling economic growth but also for uniting communities and enabling aspirations. Brought forth through the leadership of Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg, Sarawak’s aspirations for greater air connectivity have gained tangible momentum.
Stabilising High Fares
For many years, Sarawak has been dependent on external operators to manage regional air services. This reliance has come at a cost, particularly during festive seasons, with Sarawakians studying or working outside the State often burdened by exorbitant airfare prices. On September 13, 2024, for instance, one-way fares between Sarawak and Kuala Lumpur soared to RM1,709 from Miri, RM1,629 from Sibu, and RM849 from Kuching. These domestic fares were in many cases higher than international flights from Kuala Lumpur to destinations such as Taiwan, Hong Kong, and other cities across Southeast Asia (SEA) and China.
In response to these disproportionately high costs, Abang Johari mooted the acquisition of a regional airline, particularly MASwings, to offer more affordable rates for his people. His goal is to moderate airfare prices, particularly during peak seasons, and to influence other carriers to keep their pricing competitive. At its core, the initiative seeks to ensure that air travel remains accessible to all Sarawakians.
Facilitating Mobility
Beyond price regulation, Abang Johari envisions the airline as a critical enabler of mobility, a bridge that connects people, markets, and opportunities. Given Sarawak’s geographic context on the island of Borneo, owning an airline is a strategic necessity, not a luxury. AirBorneo will initially strengthen intra-Borneo connectivity, focusing on routes within Sarawak, Sabah, and Kalimantan. In subsequent phases, it aims to establish direct flights to strategic regional destinations such as Singapore, Indonesia, Hong Kong, and China.
On February 12, 2025, Abang Johari announced that AirBorneo will operate jet aircraft, with a fleet size determined by market demand. Crucially, the airline will not follow a conventional profit-driven model. Instead, its success will be measured by its economic impact, particularly its contribution to Sarawak’s gross domestic product (GDP) through job creation, increased tourism, and business facilitation.
Drawing inspiration from the Emirates Airline, which helped transform Dubai into a global hub, Sarawak intends for AirBorneo to offer competitive fares while also becoming a gateway for tourism, trade, and investment. A key component of the vision for AirBorneo is the creation of a fully integrated travel ecosystem, offering travellers a seamless journey from point of departure to their final destination in Sarawak.
Abang Johari has cited Frankfurt as an example of this ideal model: a traveller departs their home, arrives at Frankfurt Airport, boards a direct flight to Kuching, and upon landing, seamlessly transitions to the Autonomous Rapid Transit (ART) system to reach their hotel, all done with minimal friction. This streamlined travel experience, paired with expanded tourism packages and enhanced promotional efforts, is expected to boost visitor arrivals and improve Sarawak’s tourism brand.
The Making of AirBorneo
On February 12, 2025, the Sarawak Government formally acquired MASwings with zero liability, marking a pivotal milestone in the development of the State’s aviation sector. This strategic acquisition initiates an 18-month transitional period, designed to ensure operational continuity and minimise disruptions, culminating in the rebranding of the airline as AirBorneo.
AirBorneo is wholly owned by the Sarawak Government and will be overseen by a Board of Directors chaired by the Sarawak State Secretary. Under the terms of the agreement, all MASwings assets, including personnel and aircraft based in Sabah, will be transferred to the new entity. As part of its fleet modernisation, the airline will phase in ATR 72-600 aircraft, featuring updated cabin configurations, to gradually replace the existing ATR 72-500 models. While Abang Johari did not disclose the cost of the acquisition, citing commercial sensitivities and a commitment to maintaining healthy industry relations with carriers such as Malaysia Airlines, Batik Air, and AirAsia, the purchase marks a significant step forward. It empowers Sarawak to independently negotiate future aircraft acquisitions and chart its own course in fleet development.
Although operations will initially centre around turboprop aircraft, discussions are already underway regarding the introduction of jet aircraft to serve longer-haul regional routes. Currently, the airline operates a fleet comprising eight ATR 72-500 aircraft and six DHC-6-400 Twin Otter aircraft. Based in Miri, the Twin Otters provide critical air connectivity to 11 rural Short Take-Off and Landing (STOL) airports, the majority of which are not accessible by road. On March 12, 2025, Sarawak’s Minister of Transport, Dato Sri Lee Kim Shin, affirmed that there are no immediate plans to replace the Twin Otters, given their essential role in serving remote communities across the State.
Following the acquisition, MASwings’ headquarters will be relocated to Sarawak, and full-scale operations under the AirBorneo brand are anticipated to commence by the first quarter of 2026. While continuing to uphold its mandate to serve Rural Air Services (RAS), the airline is also positioning itself to enter wider regional and international markets, reflecting Sarawak’s broader ambitions in aviation and economic development. MASwings presently serves 22 destinations, including international routes such as Brunei through a codeshare agreement. Its primary hubs are located in Kota Kinabalu and Miri, with plans to enhance connectivity through a phased expansion strategy.
Priority destinations in the next phase include Kuala Lumpur, Singapore, and Jakarta, the latter being a key focus due to increasing tourist arrivals and emerging opportunities in medical tourism. With a flight duration of just one hour and 30 minutes, Jakarta serves as a vital link for Sarawak travellers.
Catalysing Eeconomic and Strategic Growth
Sarawak’s strategic geographical location positions the State to significantly enhance its investment landscape, far beyond tourism. Reliable air connectivity is pivotal in attracting investments, improving logistics, and supporting local businesses, particularly in sectors such as e-commerce and handicrafts. With a population of approximately 2.9 to 3 million people, Sarawak mirrors mid-sized nations like those in Scandinavia, which boast well-established logistics networks. The State has drawn inspiration from these economies to shape its approach to development.
The introduction of AirBorneo will further bolster Sarawak’s commitment to green energy investments, an area already attracting interest from regions such as the Middle East, Japan, and Korea. The airline’s focus on point-to-point travel will cater to both business and tourism needs, fostering stronger connectivity for investors and travellers alike. Looking ahead, AirBorneo will expand thoughtfully, ensuring sustainable growth that maximises economic benefits for Sarawak. The airline’s phased development will eventually connect destinations beyond the Borneo region, aligning with Sarawak’s broader aviation aspirations and enabling flights across not just the State, but beyond.
The content featured here is an excerpt from the book “Rise of Sarawak: Abang Johari’s Era of Transformation”, published by Sage Salute Sdn Bhd.
