KUCHING, Dec 2 — Sarawak’s own airline AirBorneo is on track to begin independent operations next month once the takeover of MASwings Sdn Bhd is completed by December 31, said Dato Sri Lee Kim Shin.
The transport minister said the Share Purchase Agreement signed on February 12, 2025 is progressing through the required due processes, with the transition expected to conclude as scheduled.
“With the transition concluding, AirBorneo is expected to commence independent operations in January 2026 with the existing Rural Air Services (RAS) in Sarawak, Sabah, and Labuan.
“It is planned to expand to regional jet operations towards the end of the year, depending on the aircraft availability, airport slots allocation and regulatory approval,” he said in his ministerial winding up speech at the State Legislative Assembly (DUN) here.
At a press conference later, Lee said the takeover process is lengthy as it involves extensive regulatory and technical requirements.
“We will complete the takeover by December 31. We have to go through a lot of due processes and that’s why it takes a long time,” he said, noting that his team has been holding weekly meetings to go through more than 20 systems involved in the transition.
He said AirBorneo Holdings Sdn Bhd is currently working through all operational details required for the takeover.
“After this, AirBorneo will be fully run by the company.
“In fact, they are now doing the groundwork to prepare for the takeover,” he said.
Lee said the state aims to begin flights in January using aircraft bearing AirBorneo livery.
“We will be changing the aircraft logo and livery — not all at once but in phases.
“We have two units available, namely on ATR and one Twin Otter. In January when we start flying, we will use our own AirBorneo logo,” he said, adding that the full rebranding is expected to be completed gradually over a six-month period.
He assured that all existing MASwings staff will be absorbed into AirBorneo unless they choose otherwise.
“We want to ensure there’s no disruption so that the moment we take over, we will be able to provide the RAS as usual,” he said.
Following the takeover, Lee said the airline will apply for a variation to its air operation licence, which requires approval from the Civil Aviation Authority of Malaysia (CAAM) and compliance with standards set by the International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA).
“For regional jet operations to surrounding countries, or flights to Kuala Lumpur and other destinations, we have to apply for another variation to the licence.
“That will take time because airline operations are very rigid and stringent in terms of regulatory requirements. It involves safety so we have to fully comply,” he said.
Lee said the state is cautiously optimistic about launching AirBorneo’s regional jet services by the third quarter or end of 2026.
“At the moment, we have to do it stage by stage. We take over MASwings first, which already has the licence, and then apply for variation to include other destinations and jet aircraft.
“Any change of aircraft must first be approved by the regulatory authorities, especially ICAO,” he said. — The Borneo Post
