KUCHING: It is more viable for Sarawak to take over MASwings, provided the debts and governance issues are resolved, compared to setting up a brand new airline company.
Professor Geoffrey Williams, an economist at the Malaysia University of Science and Technology, said taking over an existing company means easier access to licences and infrastructure.
In addition, he said, there are also staff and manpower that have specific and specialised roles in an airline, including maintenance and safety.
“The costs will be mainly administrative and perhaps rebranding. So it can be a better option compared to establishing a new company,” he told the New Sarawak Tribune when contacted today.
Although at the moment MASwings cannot fly to Kuala Lumpur, Williams said flight destinations or new routes can always be renegotiated, and low-cost airports close to big cities such as Subang can be good options.
On Friday, Premier Datuk Patinggi Tan Sri Abang Joihari Tun Openg said Sarawak has agreed in principle to take over MASwings in its bid to set up its own boutique airline.
This was proposed by the federal government, while Sarawak is currently negotiating the details and wants to get MASwings to fly to destinations beyond Borneo.
When asked whether the state’s boutique airline will be able to sustain itself in the long run as it will not be profit-oriented but will stabilise the airfares for flights to and from Sarawak, Williams opined that “not-profit-oriented” does not mean “not for revenue”.
“So, the services will not be free. There will be sufficient income to run the business in the long term, but in the short term and during normal travel fluctuations, there will be a need for government support until a sustainable income and cost model is developed.
“However, this requires discipline. If the managers take the view that it is a state-owned not-for-profit and run it down, then that will be a disaster,” he said.
The latest development marks a revival in Sarawak’s interest in taking over MASwings, a regional airline serving Sarawak and Sabah.
The Sarawak and Sabah governments first proposed acquiring equity in MASwings in 2012, but the plan was shelved a year later.
Both state governments revived their interest in the plan in 2015, announcing that they wanted to turn MASwings into a regional airline serving Asean and East Asian countries.
By 2017, however, Sarawak was no longer keen to take over MASwings due to difficulties in negotiations with its parent company.
In April this year, Prime Minister Datuk Seri Anwar Ibrahim agreed in principle to Sarawak’s request to form a boutique airline.
