Sarawak has officially launched its new airline, AirBorneo, following the acquisition of MASwings from Malaysia Aviation Group (MAG). This move makes Sarawak the first Malaysian state to own an airline, aligning with its efforts to strengthen control over strategic assets and enhance autonomy.
The acquisition agreement with MAG—a subsidiary of Malaysia Airlines fully owned by Khazanah Nasional—was signed on February 12.
MASwings, which previously operated routes across the island of Borneo, will be transformed into a full-service carrier under the new name AirBorneo, as announced by Sarawak’s Premier, Abang Johari Tun Openg, during a ceremony in Kuching.
AirBorneo Set to Go International
AirBorneo will initially focus on maintaining rural air services in Sarawak and Sabah before expanding its reach to destinations within a four-hour flight radius.
The airline aims to balance connectivity, affordability, and economic impact while enhancing Sarawak’s position as a premium tourist destination through its full-service carrier (FSC) model.
To broaden its network, AirBorneo plans to establish strategic partnerships and code-sharing agreements with international airlines, including Malaysia Airlines.
Sarawak is also targeting international flights to destinations such as Germany, South Korea, Japan, Hong Kong, and Thailand. Additionally, the state is considering constructing a new international airport in Kuching to strengthen global connectivity.
Previously operated by MAG, MASwings functioned as a turboprop airline serving rural routes in Sabah and Sarawak, covering 22 destinations with main hubs in Kota Kinabalu and Miri. Now, with its transformation into AirBorneo, the airline is poised to elevate Sarawak’s presence in international aviation.
Sarawak’s Strategic Push for Autonomy
To support its ambitious goals in the aviation sector, Sarawak is also planning to build a new Kuching International Airport. This initiative aligns with the state’s broader efforts to strengthen control over strategic assets in pursuit of greater political and economic autonomy.
Sarawak has demonstrated its determination to expand economic sovereignty. In January, Abang Johari successfully regained the state's gas distribution rights from Petroliam Nasional after a prolonged dispute. Additionally, Sarawak has taken over the operation of its largest port from the federal government and increased its stake in Affin Bank in 2024.
Meanwhile, Malaysia Aviation Group (MAG) aims to complete the full transfer of MASwings ownership to Sarawak by the end of 2025, solidifying AirBorneo’s transformation into an airline ready to compete on the global stage.
