Dzul Hadzwan Husaini of Universiti Malaysia Sarawak (Unimas) said the new carrier could play a major role in boosting tourism to the state and enhancing trade, not only with the rest of Malaysia but globally too.

“Then there is also the potential to create jobs if the tourism sector takes off. These are factors that will give the economy a boost,” he told FMT.

He warned that it would not be economically viable to operate an airline without a strategy to make it profitable.

Dzul Hadzwan said AirBorneo must, at the very least, turn in enough profits from international routes to underwrite the cost of serving the rural communities within the state.

“Then there should also be enough to contribute to the Sarawak coffers,” he said. Otherwise, he said, it would not be a viable business for the long term.

For decades, the rural air services (RAS) operated by Malaysia Airlines’ subsidiary MASwings was the only link to the outside world for rural communities in Sabah and Sarawak.

However, MASwings had never been able to break even, much less make a profit, forcing it to depend on subsidies from the federal government based on the understanding that maintaining connectivity to remote communities was more important than generating profit.

Dzul Hadzwan told FMT that Sarawak could take the cue from countries like the UAE, Qatar, and Singapore that have turned their national carriers into globally competitive airlines that contribute significantly to their countries’ economy.

“Look at Emirates. They diversified early and have become a global brand. Singapore Airlines is considered the best airline in the world. These airlines generate substantial revenue for their governments, too,” he pointed out.

Dzul Hadzwan said the same could be done in Sarawak as the state looks to diversify its economy beyond oil and gas.

“AirBorneo can do the same for Sarawak but it needs a long-term, forward-looking plan,” he said.

AirBorneo is owned by the Sarawak government through Hornbill Skyways Sdn Bhd. It is expected to begin operations by the end of this year, with an initial focus on improving connectivity to the state’s interior and underserved regions.

In September 2024, Sarawak premier Abang Johari Openg said the airline would offer fares below market rates and prioritise connectivity within the state and with Peninsular Malaysia, where air travel is often the only viable option.

Dzul Hadzwan said the airline could initially help position Sarawak as a transport and aviation hub in Borneo, making the state a potential gateway to the wider Asian and global markets.

“We shouldn’t limit ourselves to just connecting Kapit, Lawas, or Miri. We can think bigger by connecting Kuching to Jakarta, Singapore, Hong Kong, China, Japan, and even Europe.”

With strategic planning, Dzul Hadzwan said, profits from international routes could be reinvested to keep domestic fares low, especially for rural routes, still enabling the airline to serve both economic and social functions.

“You can still offer affordable tickets to Sarawakians by reinvesting profits wisely. But the airline must first be profitable.

“This is a chance to chart our own course, just like Dubai did with Emirates. If we get it right, AirBorneo can become a regional giant and a revenue engine for generations to come,” Dzul Hadzwan added.

Sarawak turned in a revenue of RM14 billion in 2024, largely from petroleum resources, but has identified aviation, the digital economy, green energy and downstream manufacturing as its growth sectors.