Sarawak is the first Malaysian state to own an airline, following the launch of AirBorneo after MASwings acquisition. Photo Credit: Adobe Stock / Klaus Eppele
The Sarawak state government has unveiled its new airline, AirBorneo, making it the first state in Malaysia to own an airline. Announced on 12 February 2025, this move follows the completion of a sale and purchase agreement between Sarawak and the Malaysia Aviation Group (MAG), finalising the acquisition of MASwings – a subsidiary of Malaysia Airlines.
Premier of Sarawak, Datuk Patinggi Abang Johari Tun Openg, hinted at this move last September, highlighting Sarawak's goal of establishing its own airline by the end of 2024 to improve regional connectivity and make Sarawak more accessible to regional and international visitors.
Addressing this latest development, Abang Johari highlighted the importance of the move. “By taking this strategic step, we are positioning Sarawak as an aviation hub for Borneo and gateway to ASEAN, opening doors to new opportunities and fostering greater connectivity and accessibility to both domestic and international destinations that will benefit our local communities and businesses alike,” he said.
AirBorneo, operating as a full-service carrier, aims to balance connectivity, affordable fares and economic growth. Premier Abang Johari added that the airline’s focus would initially be on improving rural air services with plans for future expansion, including international flights to destinations such as Germany, South Korea, Japan, Hong Kong and Thailand.
The state government also envisions strategic partnerships and code-sharing agreements with other international airlines, including Malaysia Airlines, to enhance global connectivity for Sarawak. Furthermore, Sarawak has proposed the development of a new international airport in Kuching (which will take three to five years to complete) to further improve travel connections.
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Abang Johari emphasised the importance of continued collaboration with MAG to ensure a smooth transition, maintaining high service standards. The acquisition of MASwings is part of Sarawak’s wider strategy to increase autonomy, with previous initiatives, such as securing gas distribution rights from Petronas, already laying the groundwork for greater local control.
Under MAG’s ownership, MASwings operated primarily in rural areas using a fleet of turboprop aircraft, including eight ATR 72-500s and six DHC-6-400 Twin Otters. The airline currently services 22 destinations, including Brunei, with its main bases in Kota Kinabalu and Miri.