Abg Johari’s airline proposal just an ‘image’ decision – MP
KUCHING: Bandar Kuching MP Dr Kelvin Yii disagrees with the chief minister’s suggestion to set up an airline, in collaboration with Sabah.
He said it is not sustainable or economically feasible but just an ‘image’ decision rather than a business decision.
“While I believe there is a need to improve air connectivity in Sarawak and Borneo to promote our tourism industry, as a state government, there are better things to do than dip their fingers into the airline business which is tough and highly regulated in terms of organisational structure, passenger safety regulations and other aviation requirements.
“Furthermore, it will cost a lot of public money just to set it up, even more to sustain it. The chief minister must understand that in principle, it is not the business of the government to be in business.
“The state government or even the federal government generally does not have a very good track record in doing business due to various reasons, especially in the highly challenging industry such as aviation,” he said.
He said running an airline company is very difficult as proven by the many struggling airlines around the world which are struggling to stay afloat.
“I am all for connectivity but if really the routes suggested, especially to the rural areas are profitable, AirAsia or other airline companies would have taken them up already.
“I rather that the state government used the money to incentivise existing private airlines to fly those routes. They should provide a better business ecosystem to allow the private sector to present their proposal and business plans,” he said.
As a state government, he said it should be able to provide more in making sure there are better maintenance and development of our tourism products, on top of increasing more investments to build business and tourism potential in different areas around Sarawak.
“There is no point to try increasing connectivity by starting an airline if we do not have good products to promote,” he added.