KUCHING: AirBorneo is taking measured steps to ensure long-term financial sustainability while maintaining its role in connecting rural communities and preparing for future regional expansion.
Addressing concerns over operational costs, Transport Minister, Datuk Seri Lee Kim Shin, acknowledged that maintenance and fuel prices are key factors in running the airline.
“AirBorneo is different from other airlines. One aspect is to provide rural air services under a subsidy scheme, with a public service obligation (PSO) agreement,” he said at a press conference at the Kuching International Airport VIP Terminal on Friday.
He explained that a professional team and task force will study cost management strategies, including potential fuel supply agreements with companies such as PETRONAS and PETROS.
“We need experts to look into all of this professionally and find the best options available,” Lee added, stressing that decisions will be made with both efficiency and community interests in mind.
The minister also addressed code-sharing arrangements, currently under Malaysia Airlines’ MH code, noting that expansion to regional carriers such as Singapore Airlines or Royal Brunei will be explored once AirBorneo begins commercial operations.
“When we operate as a commercial airline, we will look into expanding code sharing where suitable,” he said.
Lee also highlighted the importance of long-term planning.
“We are already studying the next phase to turn AirBorneo into a regional airline, including compliance measures and type of aircraft,” he said, adding that decisions on aircraft selection, regulatory approvals, and operational procedures would follow detailed professional studies.
AirBorneo’s approach reflects Sarawak’s ambition to balance public service with commercial growth.
By carefully reviewing operational models, fuel arrangements, and strategic partnerships, the airline aims to provide reliable services to rural communities while laying the groundwork for future regional expansion.
The minister emphasised that patience and strategic planning are crucial in the process.
“Give us a bit of time, we will work this out,” Lee said.
