The government of Sarawak in Malaysia says AirBorneo should be fully operational by the end of March 2026. Last month, the state government acquired MASwings (MY, Kota Kinabalu) from Malaysia Aviation Group and intends to relaunch it as a Sarawak-based carrier.
Sarawak Transport Minister Lee Kim Shin says work is already underway on regulatory approvals, operational readiness, recruitment, and rebranding.
He explained that the terms of the acquisition required the Sarawak government's holding company, AirBorneo Holdings, to meet all regulatory, operational, and financial requirements by December 31, 2025. This includes securing all Malaysian Aviation Commission and Civil Aviation Authority of Malaysia approvals, obtaining IATA and ICAO codes, and signing a new rural air services agreement with the Malaysian government.
The Sarawak government wants to use AirBorneo to improve connectivity to the state, although it has yet to specify how it will do this. MASwings is a regional carrier with a fleet of nine ATR72-500s and six DHC-6-400s. The government is talking about flights to Singapore Changi, Jakarta Soekarno-Hatta, and Hong Kong International. At one point last year, it threw Frankfurt International into the mix.
Malaysian Transport Minister Loke Siew Fook helped broker the acquisition and supports Sarawak's aviation aspirations. However, he warned it would require significant capital investment.
“We regard AirBorneo as we would any other Malaysian airline," he told The Sun newspaper. "They have the freedom to operate anywhere. Sarawak can fully leverage air connectivity, as Malaysia’s air service agreements with other countries grant them the freedom to operate internationally."
"We fully support this initiative," he added. "Unlike commercial airlines, which operate based on market-driven decisions, AirBorneo is owned by the Sarawak government and follows a specific agenda to enhance regional connectivity. While this effort has strong governmental backing, operating an airline requires significant capital and financial resilience. Given this support, we hope the initiative will achieve long-term commercial success."
Airport upgrades
The MASwings acquisition is in tandem with several airport infrastructure upgrades around Sarawak. Work is underway on extending the runway at Bario by 265 metres to 930 metres. Tender documents are being prepared to extend the Limbang runway to 1,790 metres, and plans are also afoot to build a new airport at Lawas and upgrade Marudi and Mulu airports.
Lee says a tender to build a new terminal at Miri should open towards the end of this year. The airport currently handles 2.4 million passengers annually, beyond its stated 2 million capacity. The minister says AirBorneo's planned future flights will put more pressure on the facility. The build, set to take 36 months, will create a terminal with separate domestic and international zones, 25,000 square metres of floor space, and six new bridges.
Last year, the Sarawak government allocated MYR235 million ringgits (USD52.6 million) to kickstart the new terminal at Miri and work at Sarawak's other airports.
