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&L) statement,
Group managing director Datuk Captain Izham Ismail said MASwings is not a profit-generating company but a public service obligation organisation.
“It is a zero-sum game to us. To a certain degree, this handover eliminates distraction from the MAG to manage MASwings moving forward,” he said during the MAG 2024 Annual Performance media briefing today.
MAG signed a sale and purchase agreement with the Sarawak government to formalise the transfer of MASwings' ownership on Feb 12.
The Sarawak government intends to rebrand MASwings as AirBorneo and operate it as a state-owned airline.
Izham said that while the airline does not generate profits, it does receive an annual government incentive.
“What we earn from MASwings is in incentive only, to the tune of about RM10 million per year. On a monthly or daily basis, it’s a zero-sum game.
“We don’t lose money. We don’t make a profit from it,” Izham explained.
He emphasised that MASwings operates primarily to ensure rural connectivity under a government-mandated public service obligation.
“So there is no impact to the P&L. It’s a zero-sum game. You may ask why we have used MASwings all these years. It’s because of the public service obligation of rural air service,” Izham said.
He highlighted the role MASwings has played in supporting national building goals, adding that it is MAG's responsibility to ensure the city and rural areas in Sabah and Sarawak remain connected. – Bernama
