The company’s chairman, Kenny Chua, said the talks began in April and had been “very positive”, The Borneo Post reported.

However, the company would await direction from the Sabah government before moving ahead.

On Sunday, Sarawak premier Abang Johari Openg said Sarawak is open to sharing ownership of AirBorneo with Sabah if the state is willing to invest in the venture.

However, he said the Sabah leaders informed him that they would need to hold discussions before making any decision.

AirBorneo was formed after the Sarawak government took over MASwings, the rural air services wing of Malaysia Airlines and is expected to begin operations next year.

Sabah Air, set up in 1975, is a general aviation company wholly owned by the state government. It operates a fleet of eight helicopters and two turboprop passenger aircraft.