Putrajaya backs Sarawak's plans to over & turn MASwings into regional airline

 By SHAREN KAUR  - August 3, 2023, Published in NST Business 

Putrajaya will fully back Sarawak's ambition to acquire airline carrier MASwings Sdn Bhd and transform it into a regional airline, according to Transport Minister Anthony Loke Siew Fook. NSTP/KHAIRULL AZRY BIDIN.

KUALA LUMPUR: Putrajaya will fully back Sarawak's ambition to acquire airline carrier MASwings Sdn Bhd and transform it into a regional airline, according to Transport Minister Anthony Loke Siew Fook.

"As far as the ministry is concerned, we are supportive, and we have committed that we will continue to provide the rural air services (RAS) subsidy even if they take over MASwings," he said on the sidelines at the Women in Rail Malaysia Conference 2023 here today.

The current six-year subsidy deal with MASwings runs from Jan 1, 2019, through December 31, 2024.

About RM210 million in subsidies were given to Sabah and Sarawak each year.

The Sarawak government has made it clear that it intends to acquire MASwings, a fully owned subsidiary of Malaysia Airlines Bhd, since early last year.

The federal and Sarawak governments signed a memorandum of understanding (MoU) last month in order to enable Sarawak to oversee RAS in Sabah and Sarawak.

During the signing of the MoU on July 20, Loke told reporters that the takeover of the RAS would depend on the outcome of talks between the Sarawak government and Khazanah Nasional Bhd over the acquisition of MASwings.

Additionally, he said after the state had acquired MASwings, a new contract to maintain the subsidies would be inked.

The state government would control RAS in Sarawak and Sabah once the acquisition of MASwings is complete, according to Sarawak Premier Tan Sri Abang Johari Tun Openg.

Abang Johari reportedly said that talks over the takeover were still going on with Khazanah.

"Our conditions are that we take over the airline with zero liability and that it will be able to fly regional routes in addition to domestic routes," he said.

Sarawak presently has only three direct international routes namely Singapore, Bandar Seri Begawan and Jakarta.

MASwings, according to Abang Johari, would not be driven by profit but rather by stabilising air fares between Peninsular Malaysia, Sarawak and Sabah.