Sarawak set to become first Malaysian state to own an airline

Malaysia’s Sarawak state acquired a sister company of national carrier Malaysia Airlines, its latest move to boost ownership of strategic assets as it pushes for greater autonomy. Sarawak signed a sales and purchase agreement with Malaysia Airlines’ parent Malaysia Aviation Group (MAG) on Feb 12 to acquire MASwings, a carrier that largely serves states on Borneo island. The acquisition price was not disclosed. MAG is wholly owned by the country’s sovereign fund Khazanah Nasional. The deal would make Sarawak the first Malaysian state to own an airline. Sarawak will rename the carrier Air Borneo and turn it into a full-service airline, said Sarawak Premier Abang Johari Tun Openg at the signing ceremony in the state’s capital Kuching. The airline will start by focusing on its current main offering – rural air services in the Borneo states of Sarawak and Sabah – before progressing to cater to destinations within a four-hour radius, he said. “We also look forward to exploring opportunities and working with original equipment manufacturers – be it Boeing, Airbus, Comac (Commercial Aircraft Corporation of China), Embraer or ATR,” said Tan Sri Abang Johari. Sarawak will also build a new Kuching International Airport to complement its aviation sector ambitions, he said. <br/>