Malaysia's MYAirline eyes 50 aircraft within 5 years

Sarawak's premier discusses MASwings takeover plans

Sarawak Premier Patinggi Tan Sri Abang Johari Tun Openg says his planned state-owned airline would likely fly to Brunei Darussalam, Indonesia, Malaysia, and the Philippines.

Speaking to local media on the sidelines of a September 6 transport conference in Kuching, the premier said the Sarawak state government was advancing its plans to takeover MASwings (MY, Kota Kinabalu) and establish it as a Sarawak-based airline. MASwings is currently owned by the Malaysia Aviation Group (MAG). The Malaysian government ultimately owns that entity.

"The strategic advantage of having a Sarawak airline will allow us control over route preferences," he said. “We will not be limited to the decisions of private airlines because we can tailor our flight offerings to cater to destinations in the Philippines, Indonesia and also to Bandar Seri Begawan."

Openg has campaigned for a locally-based airline for some time now. He argues Sarawak residents need better connectivity and more competitive airfares. However, Sarawak's capital, Kuching, is home to one of Malaysia's busiest airports. According to ch-aviation PRO airports...

Malaysia's MASwings to keep subsidies even if owner changes

The Malaysian government says MASwings (MY, Kota Kinabalu) will continue to receive a MYR209 million ringgit (USD45.8 million) annual subsidy to maintain rural air service (RAS) flights even if it changes hands from Malaysia Aviation Group to the state of Sarawak.

Malaysia's federal transport minister, Loke Siew Fook, signed a memorandum of understanding (MOU) with Sarawak state officials in Kuching on July 20, according to the Free Malaysia Today outlet. Subsidies are in place until 2025, but Fook told media on the day that the MoU included a provision for the subsidies to be re-negotiated and continue past then.

"The MoU signed this afternoon is about our commitment to provide the subsidy to the rural air services in the event that Sarawak takes over MASwings. This MOU is important to give our commitment to Sarawak," he said. "The most important thing is that rural air services won't be disrupted. It must go on so that passengers will not be affected."

The takeover of MASwings has the "in-principle" support of the federal government. The...

Sarawak gov't agrees "in-principle" to takeover MASwings

The Sarawak state government has agreed "in-principle" to acquire MASwings (MY, Kota Kinabalu), Sarawak Premier Abang Johari Openg told The Borneo Post. MASwings is a subsidiary of Malaysia Airlines (MH, Kuala Lumpur International), which in turn is wholly owned by the Malaysian government via sovereign wealth fund, Khazanah.

Johari Openg is attempting to set up a Sarawak-based scheduled carrier to improve connectivity in and out of the state and put downward pressure on fares. To date, his proposals have centred on local charter and general aviation business, Hornbill Skyways (Kuching), operating the airline. Kuala Lumpur-based federal politicians, including the prime minister, have voiced support for the plan.

However, according to Johari Openg, the plans have changed. "There is a proposal from the federal government for us (the Sarawak government) to take over MASwings," he said on June 15. "We have agreed in principle to take over MASwings."

Operating a fleet of ten ATR72-600s and six DHC-6-400s, MASwings services regional destinations in Malaysia, primarily linking destinations in Borneo, which...

Malaysia's MYAirline plans to triple fleet size this year