Running an airline is like having a baby: fun to conceive, but hell to deliver – Collet E. Woolman (1889 – 1966), founder of US Delta Airlines.
– Collet E. Woolman (1889 – 1966), founder of US Delta Airlines.
WHEN I was sent to Bakun Dam on behalf of the bank to facilitate dam sales between the Ministry of Finance (MOF) and the Sarawak government, I had the pleasure of flying with MASwings for the first time.
Those flights were full of excitement, from the roar of the engines to the thrill of takeoff and the bird’s-eye view. I really loved it.
But the winds are shifting for MASwings. A whisper in the air suggests that Sarawak is eyeing the cockpit, ready to take over the controls.
In plain English, If MASwings were bought, the parent company, Malaysia Aviation Group (MAG), would have less burden. They could concentrate on enhancing Malaysia Airlines and Firefly. It seems like a good deal, especially since MASwings’ current six-year deal is about to end.
While the state government has shown interest in controlling MASwings for years, it wants to check its financial health first. It’s a smart move though, like checking the engine of a used car before buying it.
After all, Sarawak has been thinking about launching its own airline for a while. Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg promises cheap fares and more control, but I’ll believe it when I see it.
Right now, the federal government spends RM209 million yearly for rural air services. Will Sarawak’s takeover change this? I doubt it. And promises of cheaper flights between Peninsular Malaysia and Sabah and Sarawak? The market’s already competitive, with prices fluctuating like a cat on a hot tin roof. Hello, a new airline won’t fix that.
For heaven’s sake, let’s not be naive and pretend this is a food bank adventure, shall we? We all know that to keep those jet engines firing, it needs to make some profits, plain and simple!
The financials surrounding this deal appear shaky. The airline must expand and fly to places like Indonesia and Singapore to make sense.
In our aviation market, on average, 75 out of 100 seats are occupied. That’s 75 satisfied customers, but also 25 empty seats.
If more seats are added, and more planes commissioned, but the number of passengers doesn’t grow accordingly, those empty seats might swell from 25 to 40.
That drop from 75% to 60% occupancy isn’t just a number; it’s a scary forecast of financial struggle.
Every empty seat represents lost revenue, a missed opportunity, and a burden that weighs heavily on the balance sheet.
Airlines operate on razor-thin margins and even a small dip can mean big losses.
Like in 2019, I wrote an analysis about how Maswings was flying its ATR500 planes four times a day from Kota Kinabalu to Sandakan with no one on board except the flight crew.
These planes, which can carry 60 people each, were missing out on filling up to 240 seats. If we look at what another airline, AirAsia, charges for the same flight (based on the price they gave on February 3, 2019), each seat would cost RM195. If you do the math, that’s a loss of RM46,800 every day for Maswings, or RM1.4 million each month. It’s hard to see how such a dumb practice can make financial sense.
This is where the grand party metaphor shines in its simplicity. Throwing a party without enough friends to fill the room is indeed a complete waste of resources.
But unlike a failed party, the stakes in the aviation industry are far higher.
Sarawak’s decision to take over MASwings, or any airline’s decision to expand, must be seen through this prism. It’s not just about adding more seats or flights; it’s about understanding the market, recognising the demand and making sure every new seat has someone to fill it.
It’s a lesson for all industries. Expansion must be matched with demand; ambition must be tempered with wisdom. Sometimes, the courage to grow must be paired with the wisdom to know when to hold back.
The grand party must be planned, not just with enthusiasm but with intelligence, data, and a keen understanding of the guests.
On top of that, MASwings isn’t a major profit engine for MAG, so letting go of MASwings might not cause problems for MAG, but managing rural routes without federal support could be tough for Sarawak.
Think of MASwings as a bus service that travels to small towns others avoid. Now, Sarawak wants to run that bus service itself, with a fleet of 41 RAS routes and a mix of ATR 72-500 and Twin Otter Viking DHC6-400 aircraft.
Anyway who knows? Maybe it has a secret strategy. Until that reveals itself, I’ll remain sceptical.
The views expressed here are those of the columnist and do not necessarily represent the views of New Sarawak Tribune.
