AirBorneo to balance affordable fares with long-term sustainability

LocalBusiness & Finance
20 Jul 2026 • 7:27 PM MYT
Daily Express
Daily Express

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AirBorneo to balance affordable fares with long-term sustainability

SEPANG: Sarawak's state-owned airline AirBorneo will operate under a unique “Sarawak model” that combines government support with commercial operations to ensure affordable airfares while maintaining long-term sustainability, according to Premier Tan Sri Abang Johari Tun Openg.

He said AirBorneo would adopt a different business model from conventional carriers in response to concerns over operating costs, particularly rising jet fuel prices.

“We (see) AirBorneo as a bridge because we (Sarawakians) are on an island, and you don't expect people to swim across the South China Sea.

“We treat our airline as an air bridge. There will be a little bit of government contribution in terms of fixed costs, while the operating costs will be on a commercial basis. The business model is different from other airlines’. That is the Sarawak model,” he added.

Abang Johari was speaking to reporters after AirBorneo's inaugural Kuching-Kuala Lumpur flight landed at Kuala Lumpur International Airport (KLIA) Terminal 1 here today.

He said the Sarawak government views AirBorneo as a strategic investment to strengthen the state's economy by improving connectivity for businesses and investors.

Abang Johari said Sarawak continues to attract investments in sectors such as renewable energy and semiconductors, making reliable air connectivity essential for corporate travel.

“There must be a bridge for these corporate people to fly in and out of Sarawak, and that is the investment put by the Sarawak state government,” he added.

Earlier, Deputy Prime Minister Datuk Seri Fadillah Yusof welcomed AirBorneo’s maiden flight at KLIA Terminal 1.

Besides Abang Johari, flight MY5005 also carried Sarawak state ministers and distinguished guests.

Also present at KLIA were Tourism, Arts and Culture Minister Datuk Seri Tiong King Sing; Women, Family and Community Development Minister Datuk Seri Nancy Shukri; and Deputy Transport Minister Datuk Hasbi Habibollah.

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