“Looking at the performance and capability of the Sarawak government, I have agreed in principle to the proposal of setting up another airline company by the Sarawak government,” he said, Bernama reported.

“I agree to the proposal. In fact in our Cabinet meeting last week and at the meeting on Wednesday, the details, like expensive airfare and the setting up of a new boutique airline as suggested by the Sarawak state government will be discussed,” he said.

Sarawak premier Abang Johari Openg said a new airline would help stabilise air fares, which are regarded as high.

“We do not want to compete with other airlines but just want to stabilise air fares to the state. The fare from Kuala Lumpur to Kuching is the same as that from Kuala Lumpur to Hong Kong,” he said.

The proposal for the airline came to light two years ago when Abang Johari said the state was planning to establish an airline to be operated by Hornbill Skyways, the state-owned domestic airline company.

The initial plan was to provide direct flights from Sarawak to Kuala Lumpur, Singapore, Thailand, Indonesia and Hong Kong.

Abang Johari said the airline would help generate income for the state through the export of agricultural products while meeting the demand for individual travel and tourism.

In November last year, he said the operational aspects of the airline had been finalised for international tourists to be flown directly to the state and that Sarawak was only waiting for the transport ministry to issue a licence.