KUCHING: The Sarawak government will upgrade MASwings to a regional airline from rural air service provider after its takeover from the federal authorities in the next three months, says Sarawak Premier Tan Sri Abang Johari Tun Openg.

He noted Sarawak aims to bring the state aviation sector to another level and expand its air connectivity to nearby regions, especially Hong Kong, Shenzhen in China, Singapore, Indonesia and other South-East Asian countries.

“With the rural, regional and international air services, we are opening up Sarawak for more opportunities in trade and investment, as well as tourism and business events.

“For us to be more efficient in providing air services, we are preparing Sarawak to become an aviation hub and to tap the potential for maintenance, repair and overhaul (MRO) facilities and training centre for aviators in this region,” he said during the signing of a memorandum of understanding (MoU) for the management of rural air services by Sarawak via the acquisition of shares in MASwings Sdn Bhd here last Friday.

The MoU was signed between Sarawak state-owned Hornbill Skyways Sdn Bhd and Malaysia Aviation Group (MAG), the parent company of MASwings.

It paves the way for due diligence and detailed discussion between Sarawak and Federal Transport Ministries on the takeover.

On July 20, another MoU was inked to hand over the rural air service management to the Sarawak government.

According to MAG chairman Tan Sri Wan Zulkiflee Wan Ariffin, MASwings currently operates more than 110 flights daily with a fleet of 14 aircraft and nearly 300 staff.

As of August 2023, MASwings had flown over 17.5 million passengers in the past 16 years.

Abang Johari also noted that the Sarawak government was committed to enhancing its rural air services by providing better service, wider coverage and increased flight frequencies at more affordable fares.

In addition, the federal government’s commitment to continue subsidising MASwings’ operations even after the airline’s takeover by the Sarawak government is proof of Sarawak’s close working relationship with the federal authorities.

“I am confident that our good relationship with the federal government will enable us to conclude the negotiation (on MASwings’ takeover) very soon,” he said.

Abang Johari said the move by Sarawak to establish a state-owned airline to expand air connectivity and regulate the aviation market is to ensure 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.

“Through our own airline, we can tailor our business model that prioritises Sarawak’s needs.

“This includes planning routes that cater to meet the demand of our business, industries and our people.

“This airline will be able to provide more guaranteed essential air services even on less profitable routes to ensure that no region is left without air connectivity,” he pointed out.

Furthermore, Abang Johari said, “In essence, having our own airline not only gives us more control over the aviation landscape but positions us strategically to meet the needs of our different communities.

“This becomes crucial for our tourism industry as it allows us to plan flight routes that are more convenient for our people and tourists.”

The Premier also said a state-owned airline will also support the requirements of Sarawak investors and business travellers, adding that the state had received many requests from ambassadors and investors to have good air connectivity to support their business activities.

“Having good air connectivity will surely benefit them and put Sarawak as the preferred investment destination,” he added.