State Transport Minister Datuk Seri Lee Kim Shin (centre) and his deputy Datuk Dr Jerip Susil (left) at the Sarawak Legislative Assembly on Wednesday (May 21).
KUCHING: Acquisition of MASwings Sdn Bhd by the Sarawak government is on track to be completed by year end, says state Deputy Transport Minister Datuk Dr Jerip Susil.
He said the legal and beneficial interest of the ownership of MASwings was expected to be fully transferred to AirBorneo Holdings Sdn Bhd, a wholly-owned subsidiary of the state government, by Dec 31.
ALSO READ: Sarawak formalises takeover of MASwings, to be renamed AirBorneo
AirBorneo Holdings and MASwings' parent company Malaysia Aviation Group (MAG) executed the sale-purchase agreement in February this year, after which the transaction would be completed subject to the satisfaction of conditions.
"Hence, during the period between February and December, both parties shall work towards fulfilling the conditions, including obtaining the necessary regulatory approvals from the Civil Aviation Authority of Malaysia (CAAM), Malaysian Aviation Commission (Mavcom), International Civil Aviation Organisation (ICAO) and International Air Transport Association (IATA)," Dr Jerip told Datuk Seri Wong Soon Koh (GPS-Bawang Assan) during question time in the Sarawak Legislative Assembly on Wednesday (May 21).
Other conditions include the transfer of operating assets from MAG to AirBorneo Holdings and preparing for the transition of operations from MAG to AirBorneo.
Dr Jerip also said the state-owned airline was currently operating under the existing air service licence and air operator certificate held by MASwings.
However, he said formal approval for changes in the airline's structure was required from the federal Transport Ministry, CAAM, Mavcom, ICAO and IATA as part of the acquisition process.
ALSO READ: Malaysia Aviation Group signs SPA for MASwings ownership
"These approvals are essential to ensure that the new ownership complies with all applicable national and international aviation laws and regulatory standards," he said.
Additionally, Dr Jerip gave assurance that rural air services (RAS) would not be affected following the takeover of MASwings.
"The schedule, frequency and network of RAS are expected to remain the same even after the takeover by the government of Sarawak.
"Furthermore, as the entire workforce of MASwings will be retained, their extensive experience in managing RAS operations will be leveraged to ensure continuity, operational stability and service reliability throughout and beyond the transition phase," he said.
Dr Jerip also said the state Transport Ministry and AirBorneo were engaging with the federal Transport Ministry, relevant federal agencies and stakeholders to work out the terms and conditions of a new RAS agreement with the federal government.
He said this would ensure continued and uninterrupted air connectivity to rural and remote communities in Sarawak and Sabah.
The current interim RAS agreement between the federal government and MASwings was signed on Dec 19 last year for a 12-month period and is set to expire on Dec 31 this year.
Meanwhile, state Transport Minister Datuk Seri Lee Kim Shin told reporters that the RAS agreement was for the federal government to continue subsidising rural air services in Sarawak and Sabah.
"There will be new terms and conditions with AirBorneo, the routes to be covered and so on.
"We have to work this out with the federal Transport Ministry and relevant federal agencies," he said when met at the state assembly's media room.
