S'wak premier declines to reveal cost of MASwings acquisition

Sarawak Premier Abang Johari Openg has declined to disclose the cost of acquiring MASwings from Malaysia Aviation Group (MAG), citing the need to respect the commercial deal and other players in the airline industry.

Speaking to reporters after witnessing the signing ceremony for the sale and purchase agreement of MASwings in Kuching today, he said there are certain details of the acquisition that he could not share publicly due to its commercial nature.

“It’s not expensive and also not cheap but I cannot disclose,” he said, adding that the deal to take over MASwings was different from when he announced that Sarawak had paid RM2.5 billion to take over the Bakun hydroelectric plant from the federal government back in 2017.

“I could disclose (the cost of the acquisition of) Bakun as we were the only ones to have Bakun. But for MASwings, we must respect the other (aviation) players. There are MAS, AirAsia, Malindo and Batik Air. We must respect the commercial deal,” he said.

The signing ceremony was witnessed by Abang Johari, Transport Minister Anthony Loke, and several federal and state ministers.

Signing for the Sarawak government was state secretary Mohamad Abu Bakar Marzuki while MAG was represented by its group managing director, Izham Ismail.

‘AirBorneo to create balance’

Abang Johari added that the name AirBorneo was picked as the name for the airline post-acquisition as Sarawak also considered the interest of the people in Sabah, who were also served by MASwings during its 17-year operation.

“AirBorneo is poised to create a balance between connectivity, affordable fares and economic benefits.

“Operating as a full-service carrier (FSC), AirBorneo can significantly enhance the passengers through superior in-flight services,” he said.

Abang Johari said the Sarawak government had made a bold investment decision in acquiring MASwings in the commitment to enhance regional connectivity and boost the state's economic growth.

“By taking this strategic step, we are positioning Sarawak as an aviation hub for Borneo and a gateway to Asean, opening doors to new opportunities and fostering greater connectivity and accessibility to both domestic and international destinations that will benefit our local communities and businesses alike,” he said.

He assured that AirBorneo would still maintain its focus on rural air services before expanding further in the future.

“The rural air services, by subsidising less profitable routes, will ensure that remote areas get connected to the rest of the world,” he said.

He also expressed his gratitude to MAG’s parent Khazanah Nasional, MAG and the Transport Ministry for their close cooperation and strong support throughout the transfer process of MASwings.

“The cooperation among us would not end here as we anticipate more collaborations,” he added.

- Bernama

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