Cheaper flights in store once MASwings is taken over: Premier

21 Dec 2024 • 12:14 PM MYT
Daily Express
Daily Express

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By: David Thien

Kota Kinabalu: Sarawak Premier Tan Sri Abang Johari Openg said that MASwings Sdn Bhd will offer cheaper fares for flights between Sarawak and other destinations in the country once it is taken over by the Sarawak government.

He said since Sarawak is on the island of Borneo, like Sabah, the airline is a bridge connecting Borneo with Indonesia, Peninsular Malaysia and Singapore.

AdvertisementWill Sabah travellers and tourists benefit from Sarawak’s airline cheap fare? Only time will tell that depends on the business model once the takeover is finalised by Dec 31.

MASwings serves to Lahad Datu Airport from Kota Kinabalu and Sandakan.

SPONSORED CONTENT Shell Sabah Deepwater Production Manager Earns Unsung Hero Award Daily Express had the opportunity to interview Musti whose story reflects the power of determination and resilience. Read more Abang Johari said the business model will outline how the state government plans to operate the airline. “We may see a reduction in the airfares and we will be very competitive. This is part of our tourism infrastructure,” he said.

Sarawak recorded nearly 4 million visitor arrivals from this year, an increase of 28 per cent compared to the same period of last year which generated an estimated RM9.50 billion in tourism revenue, an increase of over 30 per cent compared to 2023.

Advertisement (adsbygoogle = window.adsbygoogle || []).push({});Sarawak is on track to surpass its target of 4 million visitor arrivals post-Christmas this year contributing 7.5 per cent to Sarawak’s gross domestic products (GDP).

For 2025 with the new airline, Sarawak forecasts five million visitor arrivals, bringing in an estimated RM12.56 billion in tourism revenue and contributing 8.96 per cent to Sarawak’s GDP.

Advertisement (adsbygoogle = window.adsbygoogle || []).push({});The Sarawak Government and Malaysia Aviation Group (MAG), the parent company of MASwings, are set to finalize a Share Purchase Agreement (SPA) on December 31, 2024 marking a key milestone in transferring MASwings’ ownership.

Sarawak’s Minister of Transport, Dato Sri Lee Kim Shin, revealed that once the SPA is signed, the ownership transfer from MAG to the Sarawak Government will take approximately six to nine months, subject to specific conditions.

Abang Johari said that the establishment of a Sarawak-owned airline is aimed at promoting the state to the business community as well as to tourists.

“With a well-developed airport, the entire ecosystem in Sarawak will be in place, allowing us to be competitive with other destinations.”

Sarawak’s Minister of Transport, Dato Sri Lee Kim Shin explained: “During the transition period, MASwings will continue to operate the Rural Air Services (RAS).

“Simultaneously, the company will seek licenses and approvals from Malaysia’s Ministry of Transport, MAVCOM, and CAAM to expand its operations internationally,” Lee said.

Federal Transport Minister Anthony Loke said negotiations regarding the purchase of shares in MASwings were underway with MAG and Khazanah Nasional Bhd.

Abang Johari revealed that the state government considers medical tourism important for the state’s economy with the construction of two private hospitals by IHH Healthcare Bhd in Kuching.

He added one of the hospitals will be located at Tabuan Dayak area while another in Jalan Batu Lintang.

“The state government will also build a new Normah Medical Specialist Centre in Santubong,” he said, adding that it will have 300 beds and cost RM300 million.

He said the state government will also build a new enclave of the Borneo Convention Centre Kuching (BCCK) that will be capable of accommodating up to 10,000 people.

He said the present BCCK is not sufficient to hold bigger business events as it can accommodate up to 5,000 people.

Post-acquisition, the Sarawak Government plans to transform MASwings into a regional airline covering routes within a four- to seven-hour flight radius, positioning Sarawak as a key regional air travel hub, catering also to medical tourism and business events for its convention centre and hotels.

This move, Lee said aligns with Sarawak’s vision to enhance its profile as an international destination and attract foreign investments, with improved air connectivity playing a vital role in achieving these goals.