East Malaysian governments propose takeover of MASwings
The East Malaysian state governments of Sabah and Sarawak have expressed an interest in taking over the regional affiliate of troubled Malaysian Airlines.
Sarawak Tourism Minister Datuk Amar Abang Johari Tun Openg said the regional governments have been in discussions and if a deal can be reached, would each take a 50% stake eachin MASwings.
An offer has been sent to Khazanah Nasional Bhd, the state investment company which has taken control of Malaysian Airlines while it goes through comprehensive restructuring.
MASwings flies mainly domestic regional services within the two states in Malaysian Borneo.
Sabah and Sarawak have mooted taking over the airline in the past and have revived their interest after Khazanah hinted it may sell off some of Malaysia Airlines’ assets to cut costs.
Abang Johari said he is more confident a deal can be reached this time.
He said the aim of the two state governments is to ensure essential air service to rural areas but also to develop new routes to attract more tourism.
"We want to develop foreign markets but MAS do not want to fly to these routes," he said
Many parts of East Malaysia, especially in Sarawak are covered by large tracts of rainforest and some towns are only accessible by flying.
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