KUCHING: AirBorneo is expected to enhance trade, tourism, and regional connectivity while intensifying competition in the aviation sector, said Muhammad Asraf Abdullah.
The Senior Lecturer at the Faculty of Economics and Business, Universiti Malaysia Sarawak (UNIMAS), pointed out that the acquisition of the airline comes at the right time to strengthen both domestic and regional trade, particularly with Peninsular Malaysia and ASEAN countries, including China and Indonesia.
“With the introduction of this new Sarawak-based airline, exports can be promoted, and the trade balance further improved.
“Increased competition at both domestic and international levels may also help reduce transportation costs, especially for trade between Sarawak and ASEAN countries,” he told Sarawak Tribune.
In terms of tourism, he said the acquisition could significantly increase visitor arrivals, with Sarawak benefitting from both domestic and international routes.
“With direct flights from key locations such as Sibu, Bintulu, Kuching, Sabah, major towns in Peninsular Malaysia, and ASEAN countries, Sarawak has the potential to become a major gateway for tourism in East Malaysia,” he said.
He added that AirBorneo is expected to enhance regional connectivity by introducing routes to underserved destinations that existing airlines — such as AirAsia, Batik Air, Malaysia Airlines, Scoot, and Royal Brunei Airlines — have yet to fully serve.
“With a newly acquired airline, additional routes with high potential for tourism and trade can be explored, including direct flights between Sarawak and Kalimantan (Nusantara, Balikpapan, and Pontianak), South China, and secondary ASEAN cities,” he said.
In light of this, Muhammad Asraf suggested that Sarawak adopt a hybrid business model catering to both price-sensitive leisure travellers and business-class passengers, which could help the airline capture a wider market.
“By serving both budget-conscious passengers and business travellers, the airline can increase its customer base and attract more passengers on routes between Sarawak, Sabah, Peninsular Malaysia, and ASEAN’s major and secondary cities, including China and Kalimantan,” he said.
Acknowledging that the airline business requires heavy capital and financial investment to start and maintain operations, he noted that Sarawak’s acquisition of MASWings is an advantage, as it does not need to build the business from scratch.
He pointed out that the company’s financial burden may be reduced in terms of regulatory approvals for air operator certificates, as it can leverage MASWings’ existing fleet, customer base, and branding, as well as its trained human capital, including management, pilots, cabin crew, ground staff, and maintenance teams.
“All the newly acquired company needs to do is redesign MASWings’ current business model into one that aligns with the airline’s objectives.Financial commitment is huge in the airline business.
“Therefore, to ensure long-term financial sustainability, the newly formed airline may focus on both passenger and cargo services, as well as ancillary revenue streams from selling seats, food and beverages, merchandise, and other in-demand services.
“By expanding the airline’s revenue base, it will help strengthen the airline’s financial health, particularly during crises that reduce passenger volumes,” he said.
Additionally, he said that the newly formed airline company requires strong government support through subsidies for rural air services.
“To increase high traffic volume in the international segment, the airline may form strategic partnerships with international airlines through codeshare agreements, as well as joint ventures with tourism and business sectors, such as hotels and event organisers,” he said.
Commenting further, Muhammad Asraf said the introduction of this new airline will add to the number of existing airlines serving cities and towns in Sarawak and Malaysia.
“This development is positive as it increases competition in the aviation market for both domestic and international destinations.
“Customers will also benefit from this competition, as it motivates airlines to improve their services and lower their prices in an effort to attract a high volume of passengers,” he said.
