KUALA LUMPUR: Sarawak must strengthen its capabilities to expand AirBorneo, formerly known as MasWings, and take full responsibility for its growth in serving Borneo and international destinations.
Transport Minister Anthony Loke Siew Fook said to achieve regional airline status, it requires significant capital investment, particularly in leasing additional aircraft to enhance operations and meet growing demands.
“We regard MasWings (AirBorneo) as we would any other Malaysian airline. They have the freedom to operate anywhere, as they are governed by the country’s air service agreement.
“Sarawak can fully leverage air connectivity, as Malaysia’s air service agreements with other countries grant them the freedom to operate internationally. Under Asean’s open skies policy, flights operate on a point-to-point basis, allowing direct routes from Kuching to cities such as Hanoi, Bangkok, Manila, and Jakarta without restrictions.
“There is no distinction in access, and we fully support their expansion efforts,“ he told reporters on the sidelines of an event to mark Menzies Aviation’s partnership with MMAG Holdings Bhd on Monday.
Regarding the impact of this acquisition on Malaysia’s overall aviation strategy, Loke said the key consideration is balancing regional connectivity while maintaining healthy competition within the domestic market.
The focus remains on the ownership side of the operation, he added.
MASwings was a wholly owned subsidiary of Malaysia Aviation Group (MAG).
Under the Rural Air Services programme, the airline initially provided essential air connectivity to remote and rural communities in East Malaysia.
Early this month, the Sarawak state government formally acquired MasWings after signing a sale and purchase agreement (SPA) with MAG.
Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg said AirBorneo is poised to create a balance between connectivity, affordable fares and economic benefits.
He said that AirBorneo, as a full-service carrier, can significantly enhance passengers’ experiences through superior in-flight services. “This will emphasise the regional prestige of Sarawak as a premium travel destination,” he said at the SPA signing ceremony.
Loke believes the Sarawak government is actively working to expand AirBorneo’s connectivity from Kuching to more destinations, strengthening links within Sarawak and the broader Borneo region.
“We fully support this initiative. Unlike commercial airlines, which operate based on market-driven decisions, AirBorneo is owned by the Sarawak government and follows a specific agenda to enhance regional connectivity While this effort has strong governmental backing, operating an airline requires significant capital and financial resilience.
“Given this support, we hope the initiative will achieve long-term commercial success,“ he said.
Meanwhile, Loke said the partnership between Menzies Aviation and MMAG Sky Services Sdn Bhd, a wholly owned subsidiary of MMAG Holdings Bhd, will bring international expertise into Malaysia’s aviation sector, aiming to expand their business and enhance service quality.
Menzies Aviation has secured a ground handling licence from the Malaysian Aviation Commission), effective Nov 1, 2024. This allows the company to commence operations in Malaysia.
“Menzies is a company with a long history, and we hope they can bring international elements to our aviation sector.
“We also look forward to their business growth here and the improved services they will bring,” Loke said, adding that Menzies Aviation is partnering with MMAG Sky Services as their ground handler, focusing primarily on the cargo segment.
Loke expressed confidence that the partnership would advance Malaysia’s aviation sector and drive the country closer to becoming a key player in the regional and global aviation landscape.
Menzies Aviation executive vice-president for Oceania and Southeast Asia Darren Masters expressed confidence about the opportunities in Malaysia’s aviation sector, which already operates at a high level.
“From our experience here so far, the aviation industry is already at a high standard and has a strong foundation. We want to build on that and make further improvements. We will continue to improve operations in Kuala Lumpur, and ultimately, we want to be a major player in Malaysia’s aviation market, and we will do everything we can to make that a reality,“ he said.
