Kuala Lumpur: The handover of MASwings to the Sarawak state government will not have any financial impact on the Malaysia Aviation Group’s (MAG) profit and loss (P and L) statement. Group managing director Datuk Captain Izham Ismail stated that MASwings is not a profit-generating company but a public service obligation organisation.

According to BERNAMA News Agency, Izham described the transaction as a “zero-sum game” for MAG. He clarified that this transition would help eliminate the distraction of managing MASwings for MAG in the future. The formal transfer of MASwings’ ownership was finalized with a sale and purchase agreement signed by MAG and the Sarawak government, with the change set to take effect on February 12, 2025.

The Sarawak government plans to rebrand MASwings as AirBorneo, establishing it as a state-owned airline. Izham further noted that while MASwings does not generate profits, it does receive an annual government incentive of approximately RM10 million. This amount is classified as an incentive rather than profit, maintaining the zero-sum nature of the operation.

Izham emphasized the importance of MASwings in maintaining rural connectivity as part of a government-mandated public service obligation. He reiterated that the operation of MASwings has primarily been to fulfill the public service obligation of the Rural Air Service, ensuring connectivity between the city and rural areas in Sabah and Sarawak.

Izham also discussed the broader role of MASwings in supporting national building objectives, highlighting MAG’s commitment to ensuring connectivity across different regions.