The Sarawak state government says its will hand back ATR72-500s leased by MASwings (MY, Kota Kinabalu) after their leases expire in two years and replace them with new aircraft. The government is in the process of buying MASwings, a move expected to be finalised by the end of the year. The government intends to rebrand the airline as AirBorneo.
State Premier Abang Johari Openg told the Sarawak Tribune that the cost of replacing the existing aircraft was "not high." According to ch-aviation Commercial Aviation Aircraft Data data, MASwings operates eight ATR72-500s and six DHC-6-400s. The premier has not spoken about the future of the Twin Otters, which operate federal government-subsidised rural air services around Borneo, but he calls the existing cabin configuration in the ATR - Avions de Transport Régional turboprops "quite cramped."
The ATRs are owned by MASwings, a regional airline attached to Malaysia Airlines (MH, Kuala Lumpur International), which is owned by Malaysia Aviation Group, which, in turn, is owned by the Khazanah Nasional Berhad sovereign wealth fund. Abang's comments suggest the MASwings' acquisition includes its aircraft on a lease basis for a period of time, after which they will return to Malaysia Aviation Group.
Abang says there are plans to reconfigure the ATRs into a less cramped configuration. He has also raised the prospect of converting one into a freighter to ferry time-sensitive goods to markets such as Singapore. However, he did not say how any conversion fitted into the current aircraft lease and return plans. Abang also did not say how he would replace the existing ATR72-500s.
In the meantime, Sarawak Deputy Transport Jerip Susilhas told the State Legislative Assembly that the subsidised rural air services network will continue after the takeover and shed some light on its timeline.
"Regarding the interim rural air services agreement between the federal government and MASwings Sdn Bhd, it was signed on December 19, 2024 for a period of 12 months and is set to expire on December 31, 2025," he said. "In this regard, the ministry together with AirBorneo are currently engaging with the Federal Ministry of Transport and other key stakeholders to finalize the terms and conditions of the new rural air services agreement."
"During the period between February 2025 and December 2025, both parties will need to work towards fulfilling the conditions, including obtaining the necessary regulatory approvals from the Civil Aviation Authority of Malaysia, the International Civil Aviation Organization and the International Air Transport Association, transferring operational assets from Malaysia Aviation Group to AirBorneo Holdings and carrying out preparations for the transition of operations from MAG to AirBorneo."
