No price hike for AirBorneo's rural routes despite fuel cost spike, says CEO


KUCHING: AirBorneo is maintaining the fares on its rural air service routes despite the increase in fuel prices, says chief executive officer Megat Ardian Wira Mohd Aminuddin.

He said the Sarawak-owned airline had a social commitment to ensure rural air connectivity.

"That is ongoing and we have to continue to work with that.

"It is an obligation on our part also, as part of our agreement with the government," he told reporters at a buka puasa gathering here on Monday (March 16).

Megat Ardian said AirBorneo was facing a slight increase in expenses due to the fuel cost.

However, he said any fuel surcharge or fare increase would have to be discussed with its stakeholders, including the federal government.

"Because we have a social commitment, we're not like a commercial airline where the fare goes up in tandem with the fuel price.

"At this point in time, it is still the same fare," he said.

Megat Ardian also said AirBorneo was working on fuel procurement and mitigation plans for its upcoming jet operations to regional destinations, scheduled to start in July.

"When we plan for the jets, we have to put into place the cost of things going forward.

"This is part of our operational planning for the future," he said.

Megat Ardian said AirBorneo was in the process of obtaining regulatory approvals for one international and two domestic destinations for its initial expansion into jet operations.

He said more regional destinations would be added later in the year.

"At the end of 2026, we'll probably have about three domestic destinations and three international destinations, depending on slots and approvals.

"We'll fly three B737-800s to those destinations," he added.

 

 

 

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