Sarawak Becomes First State To Own An Airline, To Be Called AirBorneo
AirBorneo is expected to operate as a full-service carrier.
By May Vin Ang — 14 Feb 2025, 11:55 AM
Sarawak is set to run its own airline, AirBorneo, following the state government's acquisition of MASwings from the Malaysia Aviation Group (MAG)
According to The Borneo Post, Sarawak Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg announced the establishment of AirBorneo after signing a sales and purchase agreement with MAG on Wednesday, 12 February.
MAG is fully owned by the country's sovereign wealth fund Khazanah Nasional. The acquisition price was not disclosed.
As reported by The Straits Times, this deal makes Sarawak the first Malaysian state to own an airline.
AirBorneo is expected to operate as a full-service carrier, initially focusing on its current offering — rural air services in Sarawak and Sabah — before expanding to local and international routes within a four-hour radius
Abang Johari highlighted that the airline will boost Sarawak's domestic and international connectivity.
"AirBorneo is poised to create a balance between connectivity, affordable fares, and economic benefits.
"Operating as a full-service carrier, AirBorneo can significantly enhance the passengers' experiences through superior in-flight services.
"This will emphasise the regional prestige of Sarawak as a premium travel destination," he said at the signing ceremony in Kuching.
He added that the government also plans to build a new Kuching International Airport to support its aviation sector ambitions.
The transfer of MASwings' ownership is expected to be finalised by the end of the year
During the transition, MAG assured that MASwings will continue operating as usual with no disruptions to flight schedules.
