KUALA LUMPUR (Reuters) – The Malaysia Aviation Group has signed an agreement on the sale and transfer of its MASwing airline to the Sarawak state government with the deal expected to be completed by the end of the year, MAG said on Wednesday.
No financial details of the deal were given. It follows a memorandum of understanding signed with the Sarawak-owned Hornbill Skyways company on October 27, 2023 to acquire a majority stake in MASwings from MAG.
“The transfer is expected to be completed by the end of the year, with MAG working closely with all stakeholders, including shareholder Khazanah Nasional Berhad, to ensure a seamless transition and compliance with all relevant legal and regulatory frameworks,” MAG said in a statement.
Throughout the transition period, MAG said MASwings will continue operating as usual under its purview, with no disruptions to flight schedules.
State media Bernama reported that the Sarawak government renamed MASwings to AirBorneo, with the airline expected to operate as a full-service carrier.
“By taking this strategic step, we are positioning Sarawak as an aviation hub for Borneo and a gateway to ASEAN, opening doors to new opportunities and fostering greater connectivity and accessibility to both domestic and international destinations,” state premier Abang Johari Tun Openg was quoted as saying.
(Reporting by Ashley Tang; Editing by Emelia Sithole-Matarise)
