The government of the Malaysian state of Sarawak is open to the neighbouring state of Sabah investing into AirBorneo, Prime Minister Abang Johari Openg said. However, it is not a requirement, as Sabah has enough capital to finalise the acquisition of the airline currently known as MASwings (MY, Kota Kinabalu).
"If they want to share, we can share with them. It is still open. We can share with Sabah; there is nothing wrong with that, as both are on the island of Borneo. But they replied that they wanted to wait first before accepting the offer; probably, they are looking for capital," Abang Johari said during an event in Belawai.
The local prime minister said that the representatives of the neighbouring state approached him in mid-August, without Sarawak actively pursuing them as an investment partner.
"For Sarawak, we already have the capital to establish our own airline, which is why we can move forward," he added.
The two states, which have a high degree of regional autonomy under Malaysia's federal administrative system, control nearly all of the country's part of Borneo, except for the federal territory of Labuan. Among others, they have their own fiscal powers.
Sarawak plans to complete the acquisition of MASwings from Malaysia Aviation Group and obtain all necessary permits to relaunch it under the new brand by the end of 2025. The airline's headquarters is currently at Kota Kinabalu in Sabah, but will be relocated to the neighbouring state as part of the transaction. The local government aims to revamp the airline, which currently focuses on subsidised Rural Area Services (RAS) with a fleet of eight ATR72-500s and six DHC-6-400s, to a hub-and-spoke carrier boosting the state's domestic and international connectivity. However, the regional RAS routes will remain in place.
MASwings operates exclusively in Borneo and does not serve any destinations in peninsular Malaysia.
Sarawak's main airport is Kuching.
