MASwings (MY, Kota Kinabalu) will operate 39 rural air services (RAS) routes in Sabah and Sarawak over the period January 1, 2019 to December 31, 2024 as part of a new Public Service Obligation (PSO) agreement signed with the Malaysian government last week.

According to the Bernama news agency, Minister for Transport Anthony Loke Siew Fook said that under the new agreement, the previous subsidization incentive which had covered each route's operating losses had been replaced by one tied to operating and financial performance. As such, MASwings would be penalized for unsatisfactory flights which did not meet key performance indicators benchmarks.

“Incentives given in the form of management fees will depend on this,” he said.

Other adjustments to the programme include government's decision to reclassify the Kota Kinabalu–Sandakan, Kota Kinabalu–Tawau, Kota Kinabalu–Miri, Kuching–Miri, Kuching–Bintulu, and Kuching–Sibu routes as wholly commercial services as of January 1, 2019.

With these revisions, MASwings' subsidized network spans 39 routes compared with 49 previously. Its services cover Limbang–Kuching (3x weekly using ATR72s), Long Lellang–Bario (1x weekly using a Twin Otter), Long Seridan–Bario (1x weekly using a Twin Otter), as well as special cargo services between Miri and Bario, Ba'kelalan, Long Seridan, Long Lellang, Long Akah, and Long Banga (1x weekly per route using a Twin Otter).

Loke said government would also study the opening of four additional PSO routes – to Long Pasia in Sabah as well as Kapit/Bukit Mabong, Belaga and Long Silat in Sarawak.

“The additional destinations will be subject to the availability of related aviation infrastructure, in addition to cost, location and other factors,” he said.

For its part, AirAsia (AK, Kuala Lumpur International) has been granted sole commercial rights to Kota Kinabalu–Sibu and Kota Kinabalu–Bintulu on a five-year contract providing 2,520 seats per week through 14 flights using the A320 aircraft. The routes will only be opened up to other carriers once their commercial sustainability has been guaranteed.