AirBorneo must bridge Malaysia’s aviation divide

For East Malaysians, air travel has never been a matter of convenience but AirBorneo’s arrival offers a chance to reset, if managed with discipline and realism.

The launch of AirBorneo on Jan 2, 2026, following its operational takeover of the rural air services in Sabah and Sarawak a day earlier, represents far more than a corporate handover from MASwings.

It is a litmus test of whether Malaysia is finally ready to confront a longstanding structural imbalance in its aviation system — one that has consistently disadvantaged Sarawak and Sabah in terms of capacity, pricing, connectivity and mobility.

For decades, air travel for East Malaysians to the peninsula, and Kuala Lumpur in particular, was never a matter of convenience or a straightforward lifestyle choice.

Instead, this essential public service infrastructure has been for too long politicised, overpriced, and placed beyond the reach of the average Malaysian on both sides of the South China Sea.

Geography itself leaves our country divided. Long distances, vast waters and the absence of direct sea links mean aviation is the only viable travel option.

Economic integration

Air services are therefore fundamental to economic participation, social mobility, access to basic services, political connection to the peninsula, and engagement with the federal government in Putrajaya.

Against this backdrop, one would imagine that air services are abundant and affordable. The reality is otherwise.

AirBorneo’s entry into the market is timely and has the potential to reshape the economics of connectivity, if managed with discipline and realism.

Its most immediate impact will likely be felt in airfares, particularly on trunk routes linking Sarawak and Sabah to the peninsula.

Historically, these routes have been characterised by limited competition and sharp price spikes during festive seasons, school holidays, and major events.

These habitual hikes are difficult to justify, as airlines’ operating costs are not dictated by Gawai, Ka’amatan, or school calendars. Yet airline managers push their profit margins to the maximum whenever presented with the opportunity.

The result has been a persistent sense of inequity among East Malaysian travellers, and a deepening feeling of neglect for those unable to afford airfares — especially during peak periods.

Federal government funding of about RM200 million annually exists, but it is confined to rural air services within Sabah and Sarawak, leaving travel to the national capital uncovered.

Pricing power

Establishing AirBorneo is costly. Yet by expanding capacity and focusing on Borneo-centric routes, this new airline can exert downward pressure on fares — or, at the very least, impose competitive discipline on incumbent carriers such as Malaysia Airlines, AirAsia, Batik Air and Firefly.

Even modest fare compression would represent a material benefit to households, students,and small businesses that depend on frequent air travel.

However, fare reductions alone should not be mistaken for structural reform.

The deeper issues lie in predictability and connectivity. Stable pricing, reasonable ceilings during peak demand, and reliable scheduling matter just as much as headline ticket prices.

If AirBorneo can deliver consistency in pricing across peak and off-peak demand, it will already have improved public mobility within East Malaysia and narrowed the gap between eastern and western travel markets.

Stable connectivity

Consistent pricing during high-demand periods is crucial if AirBorneo is to balance its dual role as a commercial operator and an instrument of national integration.

The federal government should seriously consider framing an integration policy for all airlines operating between East and West Malaysia.

Beyond ceiling prices, AirBorneo’s real economic value lies in expanding direct connectivity beyond Kuala Lumpur.

National integration should not be confined to capital cities; it must extend into connections between urban centres and rural or interior communities. AirBorneo should consider expanding services into other cities, such as Penang, Kuantan, Johor Bahru and other towns across Peninsular Malaysia, Sarawak and Sabah.

For Sarawak, where vast distances and entrenched infrastructure gaps separate settlements, reliable air services are economic lifelines. For West Malaysians, journeys into the interiors of Sarawak or Sabah — home to natural treasures like the Mulu Pinnacles, Niah Caves, Kinabalu Park, and Sipadan Island — can be real eye-openers.

Connectivity reduces isolation. It also allows the adoption of wider perspectives, and fosters deeper understanding across Malaysia’s diverse cultures and heritage.

More importantly, national integration should also include enabling the labour workforce to move more freely between the two regions, including doing away with regional work permits.

This would allow Sabah and Sarawak to attract expertise, improve access to work opportunities, healthcare and education, and lower transaction costs for doing business across regions.

Small and medium enterprises, in particular, stand to benefit from stronger links to markets, suppliers and clients.

This approach will help ensure regular movement between regions remains high — a policy that could generate stronger and more stable demand for airlines, even during low seasons. - FMT

The author can be reached at: rosli@mdsconsultancy.com

The views expressed are those of the writer and do not necessarily reflect those of MMKtT.