KUALA LUMPUR: MASwings Sdn Bhd (MASwings), the airline that Sarawak Premier Abang Johari Abang Openg recently acquired, is expected to be in operation next year under a new name, pending several technical aspects of the acquisition, which is said to conclude by the end of this year.
According to Abang Johari, the discussion is expected to conclude by August, adding that companies like Malaysia Aviation Group (MAG) and Khazanah National are already showing interest in purchasing shares of the company.
He also mentioned that the acquisition is hoped to increase the rate of air connectivity to nearby regions like China, Singapore, Hong Kong, Indonesia and a handful of other Southeast Asian countries.
In doing so, he said, it will allow Sarawak to have better trade and investment opportunities and boost the state’s tourism industry.
He also mentioned that two state ministries, namely the Ministry of Tourism, Creative Industry and Performing Arts and the Ministry of Transport had conducted due diligence on the matter.
“After having its airline, Sarawak is poised to become an aviation hub that can provide services like maintenance, repair and overhaul (MHO),” said Abang Johari during the memorandum of understanding (MoU) signing ceremony for the management of rural air services by Sarawak via the acquisition of shares in MASwings.
Following some delays in the acquisition process earlier in March, MAG Group managing director Datuk Izham Ismail said it was due to the effort to ensure that both the Sarawak government and MASwings will benefit from the deal, which will also benefit the customers.
“(While) MAG is steadfast in supporting the Sarawak state government in fulfilling the agreement we signed in 2023, we all should acknowledge that a transaction of such scale is not easy,” Izham said.
“It encompasses valuation, due diligence, and agreement from service providers. Many doors need to be opened and closed, and most importantly, the utmost governance and integrity of both parties are not shortchanged,” he added.
Most agreements of this size would typically take a year or more, but instead, it was an accelerated merger and acquisition, which is unprecedented, he said.
