SARAWAK moved one step closer to taking over the rural air service (RAS) in the state and Sabah, provided by MASwings, and the realisation of its boutique airline when it signed a memorandum of understanding with the federal government today.

Next it will enter into a negotiation with Malaysia Aviation Group (MAG) and Khazanah Nasional Berhad to take over the shares of MASwings Sdn Bhd, the airline providing the air service.

An MOU with MAG and Khazanah could be realised as early as this coming Monday, according to state Transport Minister Lee Kim Shin.

Transport Minister Anthony Loke, who witnessed the signing in Kuching this afternoon, said the MOU with Putrajaya today was not only to facilitate the efforts of the Sarawak government in taking over the RAS.

He said one of the key conditions in the MOU is that the federal government “is committed to maintain and continue providing the subsidies to allow RAS services to continue”.

“It will continue to be given. Nothing less,” he said as he reassured the people in both states who rely on the RAS to move around that they should have no fear of deterioration in service after the takeover.

Under the current Agreement For Rural Air Services signed on January 4, 2019, MASwings had been given six years, until December 31, 2024, to provide the air service.

Sarawak Premier Abang Johari Openg, who was also a witness to the signing, reiterated the state’s position in the takeover – that it must have zero liability to the state and MASwings be allowed to have services beyond Borneo, a key goal of the state’s proposed boutique regional airline.

Loke said MASwings can be expanded to be a regional airline.

MASwings currently operates 40 routes utilising the 78-seater ATR72 turboprop aircraft, and the Canadian-built short take-off and landing (STOL) Twin Otter plane to rural settlements that have grass airstrips.

Abang Johari has hinted there would be an equipment change for the airline after the takeover and said helicopters are being considered to provide service to areas that have no airstrips.

He said the takeover by Sarawak was “not to show our pride” to other states, nor was it motivated by profits but rather to make air fares during festive seasons “more affordable” for Sarawak, and Sabah folk, who wish to return home for the celebrations.

He said it’s also to provide better air connectivity to the growing number of South Korean and Japanese businessmen who come to Sarawak to invest.

He said it would be more convenient for a Korean or Japanese businessman to fly straight to Sarawak from their country if there is a flight.

“The route would not only be shorter, it would be faster.”

He said the usual complaint he hears from these businessmen is that to get to Kuching now, they first have to take a flight to either Kuala Lumpur or Singapore and then get a connecting flight to Kuching. –  July 20, 2023.