MASwings sale back on the table

KUCHING  The Sarawak and Sabah governments have revived their interest in buying MASwings’ equity according to Sarawak Tourism Minister Datuk Amar Abang Johari Tun Openg.
Fielding questions, last Saturday, at the Rainforest World Music Festival’s main press conference, he said the federal government had no objections for the two state governments to negotiate with Malaysia Airlines owner, Khazanah Nasional Bhd, a federal government investment company.
Abang Johari said the two states would now negotiate the purchase of the airline with each possibly holding 50% of the equity.
But he did not rule out Malaysia Airlines also holding a minority share.
inside no 7It revives a proposal that first surfaced in 2012 but was shelved a year later.
“It is now open to negotiations but we cannot say yet the extent of shareholders… the MH shareholder could be part of it,” he explained.
It was speculated, earlier in the year, that each of the two east Malaysian state governments would hold 30% of equity, leaving MAS with 40%, but the ratios may change in favour of the two states holiday the bulk of the equity.
Both state governments want to turn the rural air service carrier, that is fully owned by Malaysia Airlines, into a medium-haul airline to serve the ASEAN region from Kuching and Kota Kinabalu.
They are keen to improve connectivity for two states in eastern Malaysia, Borneo island.
Abang Johari said if the states took over MASwings, the priority would be to start flights to Hong Kong and Singapore, two destinations that are identified as tourism generating hubs for the two states.
“inside no 7.1We would look at establishing regional flights to Hong Kong, southern China, Singapore, possibly Bangkok and Jakarta.”
Earlier in the year, Sabah Tourism, Culture and Environment Minister, Datuk Seri Masidi Manjun, was quoted by Star Online saying decision makers in Peninsular Malaysia needed to understand that, while it was possible to drive from Kuala Lumpur to Penang, it was not possible to drive across the South China Sea.
“A total of 94% of all visitors to Sabah come by air. That shows you how important air connectivity is. I think we deserve this. We need it,” Masidi told the newspaper.
The ministers had to seek support and clearance from the federal government to talk to Malaysia Airlines’ owning company. According Abang Johari they now have clearance to talk.
New owners would have to upgrade the fleet which is mainly made up of French-built ATR72s that have just 70 seats per aircraft.
The Sarawak minister wants to improve airline connectivity to BIMP-EAGA (Brunei Darussalam-Indonesia-Malaysia-Philippines East ASEAN Growth Area with major tourism generating ASEAN cities such as Bangkok, Singapore and Jakarta.
The minister says he will also develop tourism promotion hubs in Singapore and Hong Kong to draw tourism to the east Malaysian state. Sarawak Tourism Board will start with Singapore where promotions will be launched this September to attract niche markets.

sourced:ttrweekly.com