Sarawak's acquisition of MASwings on track, says deputy minister
The sale and purchase agreement between AirBorneo Holdings Sdn Bhd and Malaysia Aviation Group was signed on Feb 12, with the takeover of MASwings expected to be completed by the end of the year. (Bernama pic)
KUCHING : Sarawak is on track to acquiring MASwings Sdn Bhd by Dec 31 this year, marking a significant milestone in the state's efforts to strengthen regional air connectivity through its airline, AirBorneo.
Sarawak deputy transport minister Jerip Susil said AirBorneo Holdings Sdn Bhd and Malaysia Aviation Group (MAG) had signed the sale and purchase agreement (SPA) last February and were currently working to fulfil the agreed conditions precedent.
'This includes securing regulatory approval from key aviation authorities such as the Civil Aviation Authority of Malaysia, the Malaysian Aviation Commission, the International Civil Aviation Organisation, and the International Air Transport Association.
'The process also involves the transfer of operating assets from MAG to AirBorneo and preparations for a seamless transition of operations,' he said during the question-and-answer session at the state assembly sitting today.
The SPA was signed on Feb 12, with the transfer of MASwings expected to be completed by the end of the year.
Jerip was responding to a question from Wong Soon Koh (GPS-Bawang Assan) on whether the acquisition process of buying over MASwings had been completed and if the change in ownership would disrupt the operation of the Rural Air Services (RAS).
The deputy minister said that despite the change in ownership, the RAS network for remote and underserved areas in Sarawak and Sabah was expected to maintain its current schedule, frequency, and coverage.
'MASwings's entire workforce will be retained, and their experience will be instrumental in maintaining operational stability and service continuity during and after the transition,' he said.
Jerip added that the interim RAS agreement between the federal government and MASwings Sdn Bhd, signed on Dec 19, 2024, would remain in force until its expiry on Dec 31.
Sarawak transport minister Lee Kim Shin said the state, together with AirBorneo, was engaging with the federal transport ministry, agencies, and other key stakeholders to work out the terms and conditions of a new RAS agreement.
He said this was to ensure continued and uninterrupted air connectivity to rural and remote communities in Sarawak and Sabah.
'This agreement includes that the federal government continues to subsidise RAS because there will be new terms and conditions with AirBorneo,' he said when met by reporters on the sidelines of the sitting.
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