The parent company of Malaysia Airlines – Malaysia Aviation Group (MAG) – has signed an agreement to transfer the ownership of its subsidiary MASwings to the government of the Malaysian state of Sarawak.
The parent company of Malaysia Airlines – Malaysia Aviation Group (MAG) – has signed an agreement to transfer the ownership of its subsidiary MASwings to the government of the Malaysian state of Sarawak.
In a release, MAG announced it signed a Sale and Purchase Agreement (SPA) with the Sarawak Government, formalizing the transfer of the MAG subsidiary MASwings to the state government which is expected to be completed by the end of the year. No financial details of the deal was disclosed.
“The transfer is expected to be completed by the end of the year, with MAG working closely with all stakeholders, including shareholder Khazanah Nasional Berhad, to ensure a seamless transition and compliance with all relevant legal and regulatory frameworks. Throughout this transition period, MASwings will continue operating as usual under the purview of MAG, with no disruptions to flight schedules, ensuring uninterrupted air services for the communities that rely on them,” the airline group said in a statement.
Established in 2007, MASwings – based in Kota Kinabalu, Malaysia – was founded to provide regional connectivity in East Malaysia states of Sarawak and Sabah. The airline operates a fleet of 15 aircraft – comprising of 8 ATR 72 and 6 DHC-6-400 Twin Otters – to 23 destinations within Malaysia.
Following the transfer, Malaysian state media Bernama reported the Sarawak government has renamed the airline to AirBorneo. AirBorneo is expected to be operated as a full-service airline.
During the signing, Sarawak State Premier Datuk Patinggi Tan Sri Abang Johari Openg – stated the airline will strengthen the region's domestic and international connectivity.
Abang Johari said: “AirBorneo will, of course, still focus on Rural Air Services (RAS) and progressively on destinations within the four-to-five-hour radius before expanding further in the future, if the travel market warrants it.”
“By taking this strategic step, we are positioning and transforming 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,” Abang Johari added.
MAG's airline portfolio currently comprises of Malaysia Airlines, Firefly, and Amal by Malaysia Airlines.
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