Study underway on AirBorneo’s next phase as regional airline, jet fleet options in focus

Lee (sixth right) together with other distinguished guests in a photo before AirBorneo's first flight takes off from Kuching International Airport on Jan 2, 2026.
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By Karen Bong

KUCHING, Jan 2: A study is underway for AirBorneo’s next phase to transform it into a regional airline offering commercial services, including an assessment of the type of jets to be deployed.

Sarawak Minister of Transport Dato Sri Lee Kim Shin said the Sarawak government’s takeover and operation of AirBorneo is currently an interim measure, following the transfer from MASwings.

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“We now have the team and a task force to look into all these measures professionally, especially for regional expansion and to ensure its sustainability,” he told a press conference after officiating AirBorneo’s inaugural flights from Kuching International Airport today.

Lee stressed that the process would take time, as it involves complex technical, regulatory and financial considerations requiring expert input.

“The day has just started. We have just obtained the air operating licence, and from now on, we are the legal owner of the airline. Give us some time, we will work this out,” he said.

He explained that AirBorneo operates under a dual mandate. The first is to provide Rural Air Services (RAS) to remote communities under a highly subsidised Public Service Obligation (PSO) agreement, while the second, to be developed later, is its role as a commercial regional airline.

“AirBorneo is different from other airlines. One mandate is rural air services under a subsidy scheme, which comes with specific terms and conditions that we must follow. For this year, operations are more or less set and we are continuing on the existing model, but we will review this for the longer term,” he said.

AirBorneo’s flight, operated by a DHC6-400 prepares to depart for Tanjung Manis from Kuching International Airport on Jan 2, 2026.

According to Lee, the Sarawak government is also planning ahead, including a possible five-year outlook for the subsidy model for rural air services, which involves coordination with the federal Ministry of Transport as the subsidy falls under federal jurisdiction.

“The other aspect is the commercial airline. That will be regional flying, and that will come at a later stage. We will need experts to study what is in the best interest of AirBorneo, including the best options available, aviation fuel supply, and other operational considerations,” he added.

On the type of jets to be procured and deployed for regional routes expected to be introduced from July onwards, Lee said the airline is still in the study phase.

“This first phase is focused on rural air services. At the same time, we are already studying the next phase, turning AirBorneo into a regional airline. This will require regulatory compliance, including applying for changes to our air operating licence to include regional services,” he said.

He emphasised that decisions on aircraft types and business models would only be announced after thorough studies and analysis.

“I cannot say things prematurely. We need to do things professionally. We will get experts, conduct studies, analyse the findings, and then decide,” he said.

The first AirBorneo flight, operated by an ATR72-500, departing for Mukah from Kuching International Airport at 8.40am on Jan 2, 2026.

Meanwhile, Sarawak Secretary and AirBorneo Holdings Sdn Bhd chairman Datuk Amar Mohamad Abu Bakar Marzuki credited Premier of Sarawak Datuk Patinggi Tan Sri Abang Johari Tun Openg for his far-sighted vision in improving the State’s transportation ecosystem.

“This is just a start. Every journey must begin with one step. Moving forward, we will always look at our own way of doing things to ensure what is best for the people of Sarawak,” he said.

Abu Bakar added that AirBorneo would adopt a collaborative model and work closely with other airlines to deliver quality services.

“We cannot work in silos. We must work together with other airlines to provide good service to the people of Sarawak. We promise to provide the best, but we also need time, support from the community, and the media,” he said.

He noted that while perfection cannot be expected in the early stages, AirBorneo is committed to continuous improvement. “Moving forward, we promise the best for our airline industry,” he added.

Deputy Transport Minister Datuk Dr Jerip Susil, Deputy Minister in the Sarawak Premier’s Department (Corporate Affairs and Ukas) Datuk Abdullah Saidol, Sarawak Financial Secretary Dato Sri Dr Wan Lizozman Wan Omar, Sarawak Attorney-General Dato Sri Saferi Ali and AirBorneo chief executive officer (CEO) Megat Ardian Wira Mohd Aminuddin were among the distinguished guests present. — DayakDaily

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