Sarawak, MAG to sign MASwings takeover deal on Dec 31

 

The takeover of MASwings is the first step towards a regional airline that will facilitate travel between Sarawak and Peninsular Malaysia, while allowing visitors from other regions to fly to the state. (Bernama pic)

PETALING JAYA: 

The Sarawak government and Malaysia Aviation Group (MAG) will sign a sale and purchase agreement for the takeover of MAG’s subsidiary, MASwings, on Dec 31.

State transport minister Lee Kim Shin said Sarawak and MAG have agreed to the terms of the deal, The Borneo Post reported.

He said the transfer of ownership of MASwings will take between six and nine months after the agreement is signed.

“During this transition, MASwings will continue to operate the rural air services while obtaining the necessary licences and approvals from the federal transport ministry, the Malaysian Aviation Commission and the Civil Aviation Authority of Malaysia to expand internationally,” he said.

Putrajaya previously agreed to extend the RM209 million interim subsidy for rural air services in Sabah and Sarawak for another year despite the takeover of MASwings.

Once the takeover is completed, the government plans to negotiate a long-term deal for rural air services.

Sarawak premier Abang Johari Openg had said the state-owned airline would facilitate travel for Sarawakians between Sarawak and Peninsular Malaysia, while promoting tourism by allowing visitors from other regions to travel to the state. - FMT