Sarawak’s own airline, AirBorneo, is set to begin independent operations in January 2026 following the scheduled takeover of MASwings Sdn Bhd by December 31, Transport Minister Dato Sri Lee Kim Shin said.
Lee explained that the Share Purchase Agreement signed on February 12, 2025, is progressing through the necessary regulatory and technical processes, with the transition expected to conclude on schedule. Once completed, AirBorneo will initially operate the existing Rural Air Services (RAS) in Sarawak, Sabah, and Labuan, with plans to expand to regional jet services later in the year, pending aircraft availability, airport slot allocations, and regulatory approvals.
At a press conference, Lee described the takeover process as lengthy, involving more than 20 operational systems and weekly coordination meetings to ensure a smooth transition. AirBorneo Holdings Sdn Bhd is currently finalising operational details, and flights are expected to begin using aircraft branded with the AirBorneo livery in January. The full rebranding is planned to be phased over six months.
Lee confirmed that all existing MASwings staff will be absorbed into AirBorneo unless they opt out, ensuring continuity of services. Following the takeover, the airline will apply for a variation of its air operation licence with the Civil Aviation Authority of Malaysia (CAAM) and comply with standards set by the International Civil Aviation Organization (ICAO) and the International Air Transport Association (IATA).
Regional jet services are tentatively planned for the third quarter or end of 2026, with regulatory approvals required for new destinations and aircraft types. Lee stressed that the process will be carried out in stages, beginning with the MASwings takeover before expanding to jet operations.
