Sarawak launches Air Borneo, Malaysia’s first state-owned airline

Published on February 17, 2025

By: Paramita Sarkar

In a landmark move, the Sarawak state government has officially launched its own airline, Air Borneo, following the acquisition of MASwings from Malaysia Aviation Group (MAG).

This development positions Sarawak as the first Malaysian state to own an airline, aiming to transform the region into a central aviation hub for Borneo and a gateway to the ASEAN countries.

Strategic Acquisition and Launch

The formal signing of the Sale and Purchase Agreement took place on February 12, 2025, in Kuching, marking the official transfer of MASwings to the Sarawak government.

This acquisition is a significant step toward enhancing connectivity and accessibility for both domestic and international travelers.

Sarawak Premier Tan Sri Abang Johari Tun Openg emphasized that this initiative would open new opportunities and foster greater connectivity, benefiting local communities and businesses alike.

AirBorneo’s Operational Focus

AirBorneo is set to operate as a full-service carrier, aiming to balance enhanced passenger experiences with economic benefits.

The airline’s initial focus will be on rural air services, ensuring that remote areas within Sarawak and Sabah remain connected.

Plans are also in place to expand its network through strategic partnerships and code-sharing agreements with other international airlines, including Malaysia Airlines.

This strategy is designed to improve global connectivity for Sarawak, making it more accessible to tourists and business travelers.

Expansion Plans and Infrastructure Development

Looking ahead, Air Borneo intends to broaden its horizons by introducing international flights to destinations such as Germany, South Korea, Japan, Hong Kong, and Thailand.

To support this expansion and enhance overall connectivity, there are proposals for constructing a new international airport in Kuching.

This infrastructure development is expected to further solidify Sarawak’s position as a premier travel destination in the region.

Commitment to Seamless Transition and Service Excellence

Premier Abang Johari underscored the importance of continued collaboration with MAG to ensure a smooth handover process.

This partnership aims to minimize disruptions and maintain high service standards during the transition period.

Under MAG, MASwings primarily serviced rural areas with turboprop aircraft, operating routes within Sabah and Sarawak.

Air Borneo plans to uphold this legacy while expanding its reach and services.

The establishment of Air Borneo marks a significant milestone in Malaysia’s aviation history, reflecting Sarawak’s commitment to enhancing regional connectivity and economic growth.