# MASwings

MASwings, now known as AirBorneo, is an airline based in Sarawak, Malaysia. Established on 1 October 2007 as a wholly owned subsidiary of the Malaysia Aviation Group (MAG), the airline was initially tasked with providing essential air connectivity to remote and rural communities in East Malaysia under the Rural Air Services (RAS) program.
In 2023, the Sarawak Government announced its intention to acquire MASwings as part of a broader initiative to establish a state-owned airline. The acquisition was formally completed on 13 January 2025, followed by a signing ceremony on 12 February 2025, during which the airline’s rebranding as AirBorneo was officially introduced.
As part of its rebranding to AirBorneo, the airline will evolve into a full-service carrier, expanding its offerings to include regional, domestic and international flights. Despite the change in ownership to the Sarawak Government, the Federal Government will continue to subsidise the RAS program in Sabah and Sarawak.

## History
### Origins and Evolution of Rural Air Services in Malaysian Borneo

The history of Rural Air Services (RAS) in Malaysian Borneo dates back to 1953, when Sabah Airways became the first domestic airline to provide air connectivity between remote areas of British Borneo. In 1955, the airline was renamed Borneo Airways, which continued to serve rural communities through its "Ulu Air Service" also known as "Rural and Inter-colony flights". The service was critical in connecting isolated regions of North Borneo (now known as Sabah) and Sarawak with more developed urban centers.
In 1965, Borneo Airways merged with its parent company, Malaysian Airways, which later evolved into Malaysia–Singapore Airlines and eventually Malaysia Airline System. This merger facilitated the continuation and expansion of rural air services in Sabah and Sarawak, ensuring essential transportation links for remote communities and maintaining connectivity across East Malaysia's less accessible regions.
By the early 2000s, Malaysia Airlines was experiencing significant financial difficulties, partly due to the operational costs of maintaining RAS routes. The airline reported financial losses from these services, which were not economically viable due to low passenger volumes on many routes. More than 40 routes were deemed unprofitable, leading to a reliance on government subsidies. Prior to 2006, RAS operations were not subsidised, further complicating the airline's ability to maintain these routes.
In August 2006, the Malaysian government outsourced the operation of Rural Air Service to FlyAsianXpress (FAX), a subsidiary of AirAsia, aiming to enhance efficiency, reduce costs and improve connectivity for rural communities. Initially, FAX attracted attention with competitive fares and promotional offers, but the airline soon faced operational difficulties. Challenges such as maintenance issues and unreliable service led to frequent flight cancellations and passenger dissatisfaction.
To resolve these issues, Tony Fernandes, CEO of AirAsia, proposed on 11 April 2007 that the RAS routes operated by FAX be transferred to Firefly, a subsidiary of Malaysia Airlines, which had more experience managing turboprop operations. Following this recommendation, the Malaysian government announced on 26 April 2007 that Malaysia Airlines would resume control of the rural routes.

### MASwings
#### 2007-2012: Establishment and Early Years

MASwings was established on 1 October 2007 as a regional subsidiary of Malaysia Airlines (MAS). Its inaugural flight coincided with the anniversary of Malaysia Airlines founding in 1972. The creation of MASwings was part of Malaysia Airlines strategy to restore and expand air services in East Malaysia, following operational challenges faced by its predecessor, FlyAsianXpress.
MASwings was created to address these gaps in service and provide affordable and reliable air transport to rural areas in East Malaysia. The airline's mission was to enhance connectivity for isolated communities, which often had limited access to road transportation due to difficult terrain.
The airline began operations with a fleet of Fokker 50 and DHC-6 Twin Otter aircraft. These smaller planes were ideal for short-haul flights to regional airports with limited infrastructure. By the end of 2007, MASwings operated 450 weekly flights to 22 destinations across East Malaysia, including smaller towns and rural regions, marking the beginning of its service in improving connectivity in the region.
By 2009, MASwings began to broaden its operations, increasing flight frequency and expanding its route network. In December 2009, the airline announced plans to expand internationally, with destinations in the Philippines and Indonesia as part of its growth strategy. However, regulatory delays meant that MASwings initially focused on international routes within the Brunei-Indonesia-Malaysia-Philippines East ASEAN Growth Area (BIMP-EAGA).
In June 2010, MASwings expanded its international operations further within the BIMP-EAGA framework, which aimed to foster closer regional ties between Southeast Asian nations. This expansion resulted in the introduction of additional international routes, including flights between Kota Kinabalu and Bandar Seri Begawan (Brunei), as well as between Kota Kinabalu and Puerto Princesa (Philippines). Other new routes included services between Kuching and Pontianak (Indonesia), and between Tawau and Tarakan (Indonesia). By 2012, MASwings had officially commenced these services, helping strengthen its presence in the region.
During this period, MASwings also focused on modernising its fleet. The airline transitioned to ATR 72-500 aircraft, which were more fuel-efficient and better suited to the airline's regional operations. These turboprop aircraft, along with the DHC-6 Twin Otter, enabled MASwings to serve short-haul routes efficiently, particularly to smaller airports with limited facilities.

#### 2012-2019: Growth and Regional Connectivity

Between 2012 and 2017, MASwings continued to solidify its position as a key regional carrier in East Malaysia, with an emphasis on providing air services to underserved rural areas. The airline's focus remained on supporting local tourism and connecting remote communities with urban centers, making it an essential part of the region's transport network.
MASwings’ fleet of ATR 72-500 aircraft expanded, and the airline gradually increased its flight frequency. The airline continued to play a critical role in the BIMP-EAGA initiative, which fostered regional collaboration by improving connectivity between Brunei, Indonesia, Malaysia and the Philippines.
By 2017, MASwings had earned a reputation as a reliable air service provider to some of the most remote parts of Malaysia and its neighboring countries. Despite facing challenges in the international market that led to the closure of most of its international routes, MASwings maintained its core focus on domestic services, particularly in East Malaysia. This period saw the airline continuing to operate to destinations like Kota Kinabalu, Kuching, Miri and Labuan, along with its sole international route to Tarakan, Indonesia.
Between 2018 and 2019, MASwings achieved key milestones that reinforced its role in regional aviation. In 2018, the airline was recognized by the Malaysia Book of Records for its exceptional contributions to rural air services. It received awards for the "Longest Operating Hours for Rural Air Services" and the "Most Number of Passengers Transported via Rural Air Services," highlighting its important role in East Malaysia's economic and social development. These accolades underscored the airline's commitment to connecting remote communities and fostering local growth.
In 2019, MASwings entered into a new Public Service Obligation (PSO) agreement with the Malaysian government to operate Rural Air Services (RAS) across 40 routes in Sabah and Sarawak until 2024. This agreement included an annual subsidy of RM209 million to cover operational costs and maintain connectivity to underserved regions. The airline's fleet, comprising ATR 72-500 and DHC-6 Twin Otter aircraft, was well-suited for these short-haul flights to remote destinations.

#### 2020-2023: Navigating Pandemic Challenges

The COVID-19 pandemic in 2020 significantly impacted MASwings, as the Movement Control Order (MCO) led to flight suspensions and a sharp decline in passenger numbers. As restrictions eased in 2021, MASwings gradually resumed operations, although recovery was slow due to fluctuating demand and ongoing health concerns. Throughout this period, the airline continued to receive government subsidies.
By 2022, the airline experienced a significant recovery in both passenger traffic and cargo volumes after the challenges of the COVID-19 pandemic. Over the period from 2019 to 2022, MASwings successfully transported approximately 2.4 million passengers and handled more than 2,000 metric tonnes of cargo.
However, in 2022, MASwings permanently discontinued its sole remaining international route, operated using an ATR 72 aircraft, which connected Tawau in Malaysia to Tarakan in Indonesia. The service had been suspended for over two years during the pandemic, and despite market recovery, the airline determined that passenger volumes were insufficient to justify resuming the route. With this decision, MASwings shifted its focus exclusively to domestic operations.
In 2023, MASwings began taking steps to enhance its environmental sustainability. The airline announced plans to adopt sustainable aviation fuel (SAF) derived from microalgae as part of its efforts to reduce its carbon footprint. This initiative was in line with the broader global shift in the aviation industry towards environmentally responsible practices, as airlines worldwide strive to lower their environmental impact. MASwings' adoption of SAF marked a significant step in its commitment to greener aviation practices.

### AirBorneo
#### 2023-2024: Acquisition and Transition to State Ownership

In 2023, the Sarawak government expressed interest in acquiring MASwings from Malaysia Airlines as part of a broader regional strategy to establish a state-owned boutique airline. The acquisition aims to enhance Sarawak's connectivity and expand regional routes, supporting the state's efforts to improve air service availability and stimulate local economic growth. Initially expected to be completed by December 2024, the process was delayed to the first quarter of 2025 due to discrepancies in asset valuations between the Sarawak government and Malaysia Aviation Group (MAG), necessitating a third-party assessment.
On 13 January 2025, the Sarawak government officially completed the acquisition of MASwings. The announcement was made by the Premier of Sarawak, Abang Johari Openg, who also revealed that a signing ceremony would take place within the following month in Kuching. While the acquisition price was not disclosed, the process marked a significant step toward Sarawak establishing its own state-owned airline.

#### 2025-Present: Establishment of AirBorneo

On 12 February 2025, the Sarawak government formally launched AirBorneo following the successful acquisition of MASwings from Malaysia Aviation Group (MAG). The signing of the Sale and Purchase Agreement in Kuching marked the official transfer of ownership, enabling Sarawak to establish its own state-owned airline. The formation of AirBorneo aligns with the state’s long-term objective of enhancing air connectivity, supporting economic development and positioning Sarawak as an aviation hub within Borneo.
AirBorneo was conceptualised as a full-service carrier with a dual mandate: to improve regional and international connectivity while maintaining its commitment to Rural Air Services (RAS) in Sarawak and Sabah. The airline intends to expand its network within a four-to-five-hour flight radius, including routes to Kalimantan, and pursue strategic partnerships with international carriers, including Malaysia Airlines, through codeshare agreements. The Federal Government will continue to subsidise the Rural Air Services (RAS) programme, ensuring the availability of essential air services to remote communities in both states.
Premier of Sarawak, Abang Johari Openg emphasized that the establishment of AirBorneo would contribute significantly to tourism growth, investment opportunities and employment creation within the state. The government also announced plans for fleet modernisation and the introduction of new international routes as part of its broader strategy to strengthen Sarawak’s presence in the regional aviation sector.
To ensure a smooth transition, discussions with MAG and engagements with MASwings employees are ongoing, with AirBorneo set to absorb over 300 existing staff as part of the agreement. The transition to AirBorneo is expected to take place over six to eighteen months, during which MASwings operations will continue without disruption. The Sarawak government, in collaboration with MAG, has committed to ensuring a seamless transition while maintaining operational efficiency. AirBorneo will assume MASwings workforce, fleet and assets, including those in Sabah. Additionally, the government is considering acquiring new aircraft and hiring experienced industry professionals if necessary.
Malaysia Aviation Group stated that the transfer would be completed by the end of 2025, coordinated with stakeholders such as Khazanah Nasional Berhad to ensure regulatory compliance. AirBorneo is expected to commence operations by the first quarter of 2026, pending regulatory approvals, infrastructure readiness, and integration of its workforce and fleet.
AirBorneo plans to expand its network in stages, connecting Sarawak to key regional destinations. The initial routes are expected to include Singapore, Kuala Lumpur, Jakarta, Bali, Hong Kong, and potentially Shenzhen, China.

## Destinations

As of January 2025, MASwings have served these following destinations:
| Country | City | Airport | Notes |
| Brunei | Bandar Seri Begawan | Brunei International Airport | Terminated |
| Indonesia | Balikpapan | Sultan Aji Muhammad Sulaiman Sepinggan Airport | Terminated |
| Indonesia | Pontianak | Supadio Airport | Terminated |
| Indonesia | Tarakan | Juwata International Airport | Terminated |
| Malaysia | Ba'kelalan | Ba'kelalan Airport | |
| Malaysia | Bario | Bario Airport | |
| Malaysia | Bintulu | Bintulu Airport | |
| Malaysia | Kota Kinabalu | Kota Kinabalu International Airport | Main hub |
| Malaysia | Kuching | Kuching International Airport | Secondary hub |
| Malaysia | Kudat | Kudat Airport | Terminated |
| Malaysia | Labuan | Labuan Airport | |
| Malaysia | Lahad Datu | Lahad Datu Airport | |
| Malaysia | Lawas | Lawas Airport | |
| Malaysia | Limbang | Limbang Airport | |
| Malaysia | Long Akah | Long Akah Airport | |
| Malaysia | Long Banga | Long Banga Airport | |
| Malaysia | Long Lellang | Long Lellang Airport | |
| Malaysia | Long Seridan | Long Seridan Airport | |
| Malaysia | Marudi | Marudi Airport | |
| Malaysia | Miri | Miri Airport | Twin-Otter hub |
| Malaysia | Mukah | Mukah Airport | |
| Malaysia | Mulu | Mulu Airport | |
| Malaysia | Sandakan | Sandakan Airport | |
| Malaysia | Sarikei | Tanjung Manis Airport | |
| Malaysia | Sibu | Sibu Airport | |
| Malaysia | Tawau | Tawau Airport | |
| Philippines | Puerto Princesa | Puerto Princesa International Airport | Terminated |
* ↑ Although Tanjung Manis now under the jurisdiction of Mukah Division, the airport still serves the part of the population of Sarikei.

### Codeshare agreements

MASWings has codeshare agreements with the following airlines:
* Firefly

## Fleet
### Current fleet

As of January 2025, MASwings operates the following aircraft:
MASwings fleet :
| Aircraft | In service | Orders | Passengers | Notes |
| ATR 72-500 | 9 | — | 68 | |
| Viking Air DHC-6-400 Twin Otter | 6 | — | 19 | Used for rural air service. |
| Total | 15 | — | | |

### Former fleet

MASWings historical fleet :
| Aircraft | Total | Passengers | Introduced | Retired | Replacement | Notes |
| ATR 72-600 | 4 | 70 | 2013 | 2015 | None | |
| De Havilland Canada DHC-6-300 Twin Otter | 4 | 20 | 2007 | 2013 | Viking Air DHC-6-400 Twin Otter | Leased from FlyAsianXpress. |
| Fokker 50 | 8 | 50 | 2007 | 2010 | ATR 72-500 | |

### Fleet replacement

On 9 November 2007, MASwings, through its parent Malaysia Airlines, signed a Memorandum of Understanding (MoU) to purchase seven ATR 72-500 aircraft, with options for three more, to expand its services in Sabah and Sarawak. The first ATR 72-500 was delivered in 2008, with the remaining six arriving by 2009 and the optional three by 2010. MASwings retired its last Fokker 50 (9M-MGF) on 25 April 2010.
On 28 February 2012, MASwings announced plans to replace its aging DHC-6 Twin Otters with newer models, including the Dornier 228NG and Viking Air DHC-6 Series 400. By 2013, six brand-new DHC-6 Twin Otter Series 400 aircraft entered service.
In December 2012, Malaysia Airlines ordered 36 ATR 72-600 aircraft, with 16 destined for MASwings. MASwings received its first ATR 72–600 in July 2013 and planned to replace its older ATR 72-500s gradually. However, due to disputes over the RAS (Rural Air Service) contract, some routes were removed in 2015 and the newer ATRs were withdrawn prematurely, with further orders canceled.
In October 2022, ATR proposed modernising MASwings' ATR 72-500 fleet to the ATR 72-600. However, the plan was contingent on the transfer of MASwings to the Sarawak State Government.

## Awards and recognitions

* 2018: The Malaysia Book of Records for "Longest Operating Hours for Rural Air Services"
* 2018: The Malaysia Book of Records for "Most Number of Passengers Transported via Rural Air Services"

## Incidents and accidents

* 10 October 2013 — a de Havilland Canada DHC-6 Twin Otter (9M-MDM), operating as MASwings Flight 3002 from Kota Kinabalu to Kudat, landed short of the runway at Kudat Airport. The aircraft impacted a house and was destroyed. This accident marks the only fatal incident for MASwings, where two people were confirmed dead, including the co-pilot.