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CH Teo

Proposed MASwings Acquisition by Sabah and Sarawak Governments

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(A) Najib: Proposed restructuring will see Sabah, Sarawak as MASwings stakeholders

 

KUCHING: MASwings will be restructured to allow the Sarawak and Sabah state governments to have a stake in the airline.

Prime Minister Datuk Seri Najib Tun Razak, who announced this yesterday, said the move would help both states to increase their connectivity.

 

In response to requests from both states, the structure of MASwings would be reviewed to take into consideration the interests of Sarawak and Sabah, to enable both state governments to partially own the airline, he said during the Janji Ditepati programme at Wisma Bapa Malaysia here yesterday.

 

Najib did not give further details of the proposed restructuring of the airline. However, industry sources indicate that Sabah and Sarawak will have 30% ownership each while the Federal Government will take the remaining 40%.

 

The announcement is welcome news for the state’s tourism industry, which depends on good air links to bring in visitors. The Federal Government recently agreed to both state governments’ proposal for MASwings to be a regional airline instead of only operating rural air services in Sarawak and Sabah.

 

MASwings has since introduced new destinations in Brunei and Kalimantan and plans to fly to Asian cities like Hong Kong, Bangkok and Seoul in its next phase of regional expansion.

 

Sources: http://thestar.com.my/news/story.asp?file=/2012/4/29/sarawak/11198860&sec=sarawak

 

(B) Abang Johari: Majority stake in MASwings deal by end of year

 

KUCHING: The Sarawak and Sabah state governments aim to close the deal on their majority stake in MASwings before the end of this year.

 

Sarawak Tourism Minister Datuk Amar Abang Johari Tun Openg told reporters here that the deal was nearing completion.

 

“Certainly, we hope it will be concluded by the end of this year. The two state governments combined will have a majority stake,” Johari said at a press conference on Sunday.

 

He declined to reveal further details.

 

To a question on whether the two state governments could hold between 60% and 70% equity in MASwings, Johari did not deny the figures.

 

“Yes roughly around that. It's being worked out, I really can't say much because MAS (MASwings's parent company Malaysia Airlines) is a public listed company.

 

"What is safe to reveal now is that we (Sarawak and Sabah state governments) will have a substantial stake. The management (of MASwings) will be under us,” he said.

 

The Star has reliably learnt from industry sources that Sarawak and Sabah state governments are each aiming at 30% equity, leaving the remaining 40% to Federal Government.

 

Little is known about the developing deal, and how the potential unravelling of the MAS and AirAsia shareswap last year could impact the change of MASwing's ownership.

 

Talk of MASwings' becoming a Sarawak and Sabah state governments majority owned airline has been circulating since early this year.

 

The move was prompted by the sudden downsizing of Firefly - another of MAS's subsidiaries - that abruptly cancelled its services from the two Malaysian states on Borneo on the eve of Malaysia Day last year.

 

Sources: http://thestar.com.my/news/story.asp?file=/2012/4/29/nation/20120429163412&sec=nation

 

Have your say, good or bad?

 

For me, if the future expansion plans are really based on market demand without politics concerns / influence; it would be a good move....let's see how they gonna turn the connectivity issues around which they had been complaining for so long once flights got cut....

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This is ang pow for the two states just before election. :p

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I'd always wonder how do you balance profitability with connectivity. I remember citizens from Labuan & Sandakan had been asking for better connectivity for years now, but there is just simply not enough passenger to fill up an aircraft.

 

Just to share I came back from SDK last night on Maswings last flight for the day and there were just 5 passengers.

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I find it odd that seaplanes or amphibians are not even considered for rural routes. Certainly a subsidized fleet of Cessna Caravans or Twin Otter with floats would be way cheaper than building an airport in the short-medium term.

 

These transports can even be VIP converted for express flights between town/city centres from the express boat jetties.

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This is ang pow for the two states just before election. :p

 

True enough... :D...

 

I'd always wonder how do you balance profitability with connectivity. I remember citizens from Labuan & Sandakan had been asking for better connectivity for years now, but there is just simply not enough passenger to fill up an aircraft.

 

I think fares also played a role, this year less sales from them; previous two years when more sales, I can see that the load is at least 50% of the capacity....but yea, balancing profitability and connectivity is really a hard task....

 

 

Just to share I came back from SDK last night on Maswings last flight for the day and there were just 5 passengers.

 

Waiping, serious? Only 5 passengers for the entire ATR 72?

 

I find it odd that seaplanes or amphibians are not even considered for rural routes. Certainly a subsidized fleet of Cessna Caravans or Twin Otter with floats would be way cheaper than building an airport in the short-medium term.

 

These transports can even be VIP converted for express flights between town/city centres from the express boat jetties.

 

Got talks about it as seen in media, but till now seems no real orders being decided yet....

Edited by CH Teo

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I find it odd that seaplanes or amphibians are not even considered for rural routes. Certainly a subsidized fleet of Cessna Caravans or Twin Otter with floats would be way cheaper than building an airport in the short-medium term.

 

These transports can even be VIP converted for express flights between town/city centres from the express boat jetties.

 

Ahh, the good old days of luxury travel on the seaplane. reminds me of the early days of Pan Am.

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© Sarawak, Sabah eye majority stake

 

KUCHING: Sabah and Sarawak are set to acquire a majority stake in MASwings soon, said Minister of Tourism Datuk Amar Abang Johari Tun Openg here yesterday.

 

The takeover bid, which is already in its advanced stage of negotiations, is expected to be wrapped up by year-end.

 

He said MASwings’ parent body Malaysia Airlines and the Sarawak and Sabah governments had already agreed to the transaction although the buyout percentage was still being negotiated.

 

“The rationale behind our aim to become a majority stakeholder in the airline is to have its management from our side … where we can formulate the direction and business model for MASwings.

 

“We will not compete with other airlines as we need to evaluate the best business model for this airline. The most important factor is for these two states to have a say on what needs to be done. What we need now is direct connectivity,” Abang Johari, who is also Minister of Housing, told a press conference at his residence here yesterday.

 

With MASwings administration to be determined by both state governments, its focus would swing to enhancing connectivity between the two East Malaysian states with East Asian countries such as Korea, Japan, China, Hong Kong and India.

 

In addition, established network with Singapore, the peninsula and BIMP-EAGA areas would also be strengthen.

 

Once the restructuring exercise is completed, Abang Johari forsees a re-branding of MASwings. Its fleet of aircrafts would be expanded by acquiring more 737-800 aircrafts.

 

On the local front, the state might buy more planes despite the availability of the ATR and Twin-Otter aircrafts. Some of the Twin-Otters would be fitted with amphibious landing equipment to serve Bakun and Batang Ai.

 

“Considering that the main objective is for MASwings to have a network specifically for these areas, this new acquisition would create better accessibility to SCORE (Sarawak Corridor of Renewable Energy) and Sabah Corridor areas.

 

“This development will give a big economic development impact to both states, including for the tourism sector. We have always highlighted Sarawak being a new ecotourism destination. The state, rich in its biodiversity, culture and nature, provides vast attraction to foreign visitors.

 

“The state will strengthen its tourism promotion to woo tourists who love nature, culture and biodiversity.”

 

Without the restructuring exercise, Abang Johari said it would remain difficult for the state to propose routes and connectivity with MAS due to business reasons. This new development would give both state governments more room to manoeuvre its tourism and economic planning.

 

Abang Johari said the state could not have its own airline as it was a very expensive business. Both Sabah and Sarawak chief ministers then decided that the best alternative would be to go for a takeover considering the infrastructure was already in place.

 

Also present at the press conference was Assistant Tourism Minister Datuk Talib Zulpilip.

 

Sources: http://www.theborneopost.com/2012/04/30/sarawak-sabah-eye-majority-stake/

Edited by CH Teo

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Interesting.

 

So if these grandiose plans fail and it needs a bailout, who will have to pay?

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(D) Sabah, Sarawak to get major share in airline

 

KUCHING - Sabah and Sarawak would have a 60 to 70 per cent share in the restructured regional airline MASwings, Sarawak Tourism and Heritage Minister Datuk Amar Abang Johari Tun Openg said yesterday.

 

"I cannot reveal too much as MAS (Malaysia Airlines) is a public-listed company.

 

"But it will give Sabah and Sarawak a substantial share in the airline."

 

He said this at his home in Petra Jaya to provide details on the restructuring exercise which Prime Minister Datuk Seri Najib Razak disclosed when opening the Jelajah Janji Ditepati carnival on Saturday.

 

MASwings, set up to operate the rural air services in the two states, is a wholly-owned subsidiary of MAS.

 

Abang Johari, who started the push for the two states to have a controlling stake in the airline last year, described the talks as being quite advanced and added that the deal could be wrapped up before the year-end.

 

He said the rationale for having control of MASwings was to give Sabah and Sarawak the right to exploit opportunities in the Asian travel and tourism business.

"We not only need direct connectivity. We have to compete with other airlines. This region will be lucrative. It is important we have a say."

 

Although the future of the airline is still being thrashed out, its operations would no longer be confined to servicing rural communities in Sabah and Sarawak and flying to some destinations on Borneo island.

 

MASwings now flies to Brunei from Kuching and Kota Kinabalu. It also flies to Tarakan, Pontianak and Balikpapan in Kalimantan.

 

Abang Johari said the restructured MASwings would fly primarily to east Asian destinations in South Korea, Japan, China and Hong Kong. It would also fly to India.

"The network we're planning will have a huge impact on the development of the tourism economy in the two states."

 

The airline will no longer have a turbo-prop fleet. Abang Johari said MASwings would purchase Boeing 737-sized aircraft to service the proposed east Asian routes.

Some of its Twin Otters, he said, would be retrofitted with floats to land on the Bakun and Batang Ai dam reservoirs and the Batang Lupar in Sri Aman.

 

Bakun and Batang Ai are being developed as major eco-tourism areas while the Benak tidal bore festival on the Batang Lupar in Sri Aman has become a major tourist draw.

 

Sources: http://www.asiaone.c...430-342955.html

Edited by CH Teo

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I think they are looking a bit too far to HKG and Korea but neglecting places in Kudat, Keningau and other smaller places in the interior. If they cut services to rural areas it would be even worst than AK!

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I thought the highway from KK to Keningau is good enough (OK lah, not that four lane highway we expect in peninsular). I saw pictures of new KK-Kimanis-Keningau road and the pavement seems quite good. So, why still need airstrip? Please enlighten me on this...:)

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Probably due to the longish car ride..? Similarly, Lahad Datu and Tawau are two hours away by car (or 1.5 hours from/to TWU airport).

 

More over it caters for tourists too. KK-Kimanis-Keningau can be quite a bit of long ride and can be packed at times. I heard there have been landslides and things during heavy rain.

Edited by S V Choong

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Sorry to be a killjoy, but I just cannot see this thing going much beyond the initial launching euphoria

Is MASwings going to operate on its own code henceforth ? (no more MHxxxx ?)

The moment MH or AK senses this new entity making any headway into their market share, be assured they will (and should) take measures to snuff out the impending competition

Worst case scenario may be that this new entity will be so unsustainable that the RAS too will go the way of the dodos (ie become extinct)

I repeat my hope that the Sabah state government stays out of this, or at least leave the state coffers alone :)

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Sarawak, Sabah in talks with Putrajaya over new airline

 

 

 

KUCHING: Sarawak and Sabah are still having discussions with the Federal government on the proposed launch of a new airline said ChiefMinister Tan Sri Abdul Taib Mahmud.

He said both states were keen to buy majority shares in the new airline, a subsidiary of Malaysia Airlines (MAS) to enable them to plan ahead to improve their air accessibility besides wanting to have more flexible connections with other airlines that are serving the region.

"Both states would like to have routes that allow them to land in Hong Kong, Singapore, Kuala Lumpur and other cities where they can find feeding points from Kuching, Kota Kinabalu and Brunei Darussalam," he told reporters in Doha.

He was happy that Sarawak and Sabah were being served increasingly by low budget airlines, connecting Peninsular Malaysia with Sibu, Bintulu, Miri and Kota Kinabalu. - Bernama

http://thestar.com.my/news/story.asp?file=/2012/10/15/nation/20121015111432&sec=nation

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Yes, election time and everyone wants to build castles in the air. Post election, the cookie crumbles and taxpayers will have to pick up the pieces... The Sarawak CM is perfectly capable of setting up his own airline if he wishes. Why is he asking for more funds from the state?

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Setting up a new airlines? Are they kidding? MASwings can always feed MH that can fly to international destinations. May not be the most profitable routes, but still more efficient than setting up an entirely new airline.

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Yes, election time and everyone wants to build castles in the air. Post election, the cookie crumbles and taxpayers will have to pick up the pieces... The Sarawak CM is perfectly capable of setting up his own airline if he wishes. Why is he asking for more funds from the state?

 

If people gonna pay for it, why bother digging into his deep pockets? It always have been like that, he's White Rajah.

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Yes, election time and everyone wants to build castles in the air. Post election, the cookie crumbles and taxpayers will have to pick up the pieces... The Sarawak CM is perfectly capable of setting up his own airline if he wishes. Why is he asking for more funds from the state?

 

Setting up an arline usually means making millions from billions, which means it is very difficult to be profitable.

 

So if it is profitable, it will be his own private fund, and his own private profit. If it is not profitable, it will be losses by the people's fund.

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KUCHING: Discussions are under way between the state government and Malaysia Airlines (MAS) for its subsidiary MASwings to become autonomous to be able to expand its flight routes.

Housing and Tourism Minister Datuk Amar Abang Johari Tun Openg said since MAS was also restruc- turing itself, he said the state government proposed the nation’s longest serving airline to maintain the same structure for Sarawak and Sabah, but to have autonomous management.

“This is so that we can decide on the route. It would be a consultative sort of structure with autonomy,” he told reporters after the morning State Legislative Assembly (DUN) session yesterday.

Johari also proposed that since MASwings was going to upgrade its current fleet of Twin Otter aircraft, he also suggested the airline to include amphibious aircraft to the new fleet.

“For example if they are flying to Sri Aman, they can also land in Batang Lupar. Also to promote Fort Alice as a tourist attraction there, a special jetty could be built to accommodate these amphibious planes,” he said.

Johari also revealed that by the year 2015, Asean countries would have an open sky where all airlines within Asean would be able to fly and land at any point within Asean.

“On top of that Asean is also embarking on Asean+3, which inclu- des China, Japan and Korea. We will try to impress the Asean committee with MAS and MASwings by having this point-to-point routes,” he said.

Earlier during the DUN ques- tion-and-answer session, Pantai Damai assemblyman Dr Abdul Rahman Junaidi was asking what steps were being taken by the government to improve air connectivity to boost the tourism industry in the state.

Assistant Tourism Minister Datuk Talib Zulpilip said MAS had informed the ministry that it would add more flights into the state in the coming six months.

For MASwings, he said, the airline was still waiting for approval from the Transport Ministry to start flying to Balikpapan, Indonesia.

“MASwings will also have flights from Kuching to Mulu and Brunei sometime January next year. Our ministry is also trying to draw in chartered flights from China, Japan, Taiwan and Korea into the state.

“This is also a collaboration between the Sarawak Tourism Board, Sarawak Tourism Federation and Tourism Promotion Board,” he said.

Talib also elaborated on fully utilising the extended Sibu Airport, responding to Bukit Assek assemblyman Wong Ho Leng’s (DAP) questions.

Talib said the extension of Sibu Airport was meant to cater for passengers into the Central Region, in anticipation of the rapid development in Sibu and its hinterland and the Sarawak Corridor of Renewable Energy (SCORE) area of Tanjung Manis and Mukah.

“The ministry is also discussing with MAS and other airlines to increase flight frequency into Sibu. Airline is a business entity and the final decision whether airlines will fly into Sibu depends on the load factor. As far as the ministry is concerned, we will continue to promote Sibu and the Central Region as a tourism destination.

“Related tourism infrastructure and services in the Central Region will also be planned and has been implemented. The private sector also needs to play an active role in helping the state to develop the Industry,” he said.

Wong also asked what the state revenue was from the tourism industry for Sibu from 2005 till now.

“The estimated revenue from the tourism industry for Sibu from 2005 till 2011 is RM282,879,846.30,” replied Talib.

http://thestar.com.my/news/story.asp?file=/2012/11/21/sarawak/12346863&sec=sarawak

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I think more needs to be done before people will fly there. I never knew Sibu was good for tourism.

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I think more needs to be done before people will fly there. I never knew Sibu was good for tourism.

 

The government there has a different formula. Fly the people in first, then tourism offerings will be improved.

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The government there has a different formula. Fly the people in first, then tourism offerings will be improved.

 

I think it's more the people there to holiday elsewhere.

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I think it's more the people there to holiday elsewhere.

Then it will be somewhat difficult to sustain year round no ? :)

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