Sarawak Transport Ministry permanent secretary Datuk Alice Jawan Empaling (third left) and federal Transport Ministry secretary-general Datuk Jana Santhiran Muniayan (second right) exchanging the signed MOU documents, witnessed by Sarawak Premier Tan Sri Abang Johari Tun Openg (centre).
KUCHING: The state government will handle the management of rural air services (RAS) in Sarawak and Sabah once its takeover of MASwings Sdn Bhd is concluded, says Sarawak Premier Tan Sri Abang Johari Tun Openg
He said negotiations were ongoing with Khazanah Nasional Bhd on the takeover, adding that the Federal Government will continue to subsidise RAS after MASwings is taken over by Sarawak.
"Our conditions are that we take over the airline with zero liability and that it will be able to fly regional routes in addition to domestic routes," he added.
He told reporters this after witnessing the signing of a memorandum of understanding (MOU) between the federal and state Transport Ministries on the RAS here on Thursday (July 20).
Abang Johari said the airline would not be profit-motivated but will be aimed at stabilising air fares between Peninsular Malaysia, Sarawak and Sabah.
"We've done our cost-benefit calculations and we look at the benefits at a macro level. If we can cover the costs, that will be enough," he said.
He also thanked the Federal Government for its commitment to continue the RAS subsidy.
Transport Minister Anthony Loke said the current subsidy agreement with MASwings covered six years from Jan 1, 2019 to Dec 31, 2024.
He said the subsidy amount was about RM210mil a year for Sabah and Sarawak.
"Even after Sarawak takes over MASwings, our commitment is that the subsidy will continue. We will sign a fresh agreement for 2025 and beyond once Sarawak takes over the airline," he said.
Loke said the MOU indicated the Federal Government's continuing support for RAS in the event of Sarawak taking over MASwings.
"It is an important commitment we have to display and to show our sincerity in working closely with the Sarawak government for the benefit of the people," he said.
Loke also said it is important for the RAS to continue operating without disruption following the takeover.
He said RAS is an essential service for many rural areas with no other mode of transport besides air connectivity.
"The Sarawak Premier has a lot of ideas in transforming RAS, including other options in future besides the current model of using only the ATR72 and Twin Otter aircraft. This is up to the new owner to decide," he added.
