Transport Minister Liow Tiong Lai said the routes were being reviewed before the government renews its contract with the airline next year to operate the rural air service, which links remote communities.

“Routes served by other airlines, such as Kota Kinabalu to Sibu, will no longer be subsidised,” said Liow after attending a Chinese New Year gathering here on Tuesday.

Liow said under the extended contract the Federal Government would provide RM190 million in subsidies to MASwings for seven years.

The subsidies would cover rural routes, allowing those living in remote communities to fly out to towns at a reasonable cost, he said.

Liow said MASwings would be allowed to expand its operations beyond its existing 49 destinations within Borneo.

“We are encouraging it to serve destinations within the East Asean Growth Area,” he said. The area covers Sabah, Sarawak and Labuan; Brunei; Mindanao and Palawan in the southern Philippines; and Kalimantan, Sulawesi and Maluku in Indonesia.

The airline operates a fleet of ATR72 turboprop aircraft and Twin Otter aircraft.

Liow said there were no restrictions on the type of aircraft MASwings could operate, including jet aircraft. “They can use other aircraft, there is no problem with it,” he said.