Sarawak Premier Seeks New ATR72 Aircraft for AirBorneo Launch

Sarawak’s state government plans to return leased ATR72-500 aircraft currently operated by MASwings once their leases expire in two years, with intentions to replace them with newer models for its soon-to-be rebranded airline, AirBorneo. The move follows Sarawak’s ongoing acquisition of MASwings, which is expected to be finalized by the end of 2025.

Premier Abang Johari Openg stated that the replacement cost for the turboprops is “not high,” emphasizing the need for improved passenger comfort. The current ATR72-500s have a tightly packed cabin configuration, which he hopes to address in future aircraft. MASwings operates eight ATR72-500s and six DHC-6-400s, although no decision has been announced about the future of the Twin Otters that service rural Borneo routes under a federal subsidy program.

MASwings is part of Malaysia Airlines, under the Malaysia Aviation Group and ultimately owned by sovereign wealth fund Khazanah Nasional. Once the lease terms end, the ATR aircraft will revert to the Malaysia Aviation Group.

Abang also suggested converting at least one ATR72 into a freighter to transport time-sensitive goods to destinations like Singapore, although no timeline or lease impact was disclosed.

Sarawak Deputy Transport Minister Jerip Susil confirmed that rural air services will continue after the takeover. An interim federal agreement with MASwings is valid until December 31, 2025. In the meantime, AirBorneo and federal stakeholders are working to finalize a new rural air services agreement and transition operational control, pending regulatory approvals and asset transfers.

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Sources: AirGuide Business airguide.info, bing.com, ch-aviation.com