I’ve done my homework on boutique airline, says Abang Jo

Abang Johari Openg has dismissed Bandar Kuching MP Dr Kelvin Yii’s concerns that setting up a boutique airline could have a negative impact on Sarawak’s economy.

PETALING JAYA: Sarawak premier Abang Johari Openg has defended the state’s plans to set up its own boutique airline, saying that he has done his homework on the matter.

He added that the state government must intervene in the market to stabilise airfares for flights to and from Sarawak in view of the current high rates.

Abang Johari said he would not have sought approval from the federal government if he had not done his research and calculated the risks, the Borneo Post reported.

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The business model for the boutique airline will also be different, Abang Johari said.

“We hope this business model will allow us to run this airline, then we cover the overheads (costs) because we are not profit-driven,” he was quoted as saying.

The premier said Sarawak already has the experience of operating an airline through Hornbill Skyways, the state-owned  company.

He expected the airline to be operational within three years.

Abang Johari also dismissed Bandar Kuching MP Dr Kelvin Yii’s concerns that setting up a boutique airline within the region could have a negative impact on Sarawak’s economy.

“(It was the same with) Autonomous Rapid Transit (ART). They (DAP) were sceptical. They were also sceptical about the digital economy (initiated by me) and on Sarawak Pay,” he said.

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“But now you see (they’ve changed their tone). Let time tell.”

On Tuesday, Yii had questioned the economic feasibility of Sarawak’s plan to set up its own boutique airline, calling for more information about the project’s cost, its cost-benefit analysis and the parties involved.

The DAP Youth chief said it would be better for Sarawak to cooperate with existing national and private airlines to improve connectivity, especially in Sarawak’s domestic routes, by offering incentives and subsidies.

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Yii’s remarks came after Prime Minister Anwar Ibrahim said he agreed with Sarawak’s plan to set up a state-owned boutique airline. Anwar said the new airline could result in cheaper airfares between the peninsula and East Malaysia.

The proposal for the airline was made two years ago when Abang Johari said the state was planning to establish an airline to be operated by Hornbill Skyways. - FMT