Sarawak to conclude MASwings takeover within three months

(Standing from left) Sarawak Transport Minister Datuk Seri Lee Kim Shin, Premier Tan Sri Abang Johari Tun Openg, Deputy Premier Datuk Amar Dr Sim Kui Hian and state Tourism, Creative Industry and Performing Arts Minister Datuk Seri Abdul Karim Rahman Hamzah witnessing the MOU signing between the state Transport Ministry, Hornbill Skyways and Malaysia Aviation Group in Kuching on Friday (Oct 27).

KUCHING: Sarawak aims to complete the takeover of MASWings Sdn Bhd within the next three months, says Premier Tan Sri Abang Johari Tun Openg.

This comes after the state Transport Ministry, state-owned Hornbill Skyways Sdn Bhd and Malaysia Aviation Group (MAG) signed a memorandum of understanding for managing rural air services by acquiring shares in MASwings here on Friday (Oct 27).

MAG is the parent company of MASWings.

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Abang Johari said the MOU paved the way for due diligence and detailed discussions on the takeover between the state and Federal Transport Ministries.

"I give them about three months. If possible, we want to start flying by next year," he told reporters after the signing ceremony.

Abang Johari said Sarawak wanted a controlling stake in MASwings for it to become the state's boutique airline.

He said it would be a small airline flying to regional destinations, with Kuching as a hub.

"Currently, MASwings flies rural air services only in Sabah and Sarawak.

"Our proposal to the Federal Government in taking over MASwings is that it has to fly beyond Borneo.

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"This means regional destinations about six to seven hours away, including South Korea, Japan, Hong Kong, India and northern Australia," he said.

In his speech earlier, Abang Johari said the state-owned airline would not be profit-oriented but aimed to serve the people better.

"The objective is to expand air connectivity, regulate the aviation market and ensure fair competition within Sarawak and the region.

"This airline will be able to provide essential air services even on less profitable routes, ensuring no region is left without air connectivity," he said.

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Abang Johari also said that as part of the MOU, a joint working committee would explore the possibility of including the Sabah government in equity acquisition in the ensuing negotiations, as guided by the Federal Government, in the interest of rural air services in Sabah.

Meanwhile, state Transport Minister Datuk Seri Lee Kim Shin said the MOU would accelerate the due diligence process before the acquisition.

"I believe it is timely for us to upgrade MASwings to support the development of Sarawak’s rural areas and the movement of our people and goods," he said.