Sarawak’s airline to operate on business model similar to Emirates — Abg Jo

KUCHING: Sarawak’s own airline will operate on a business model similar to Emirates, one of the flag carriers of the United Arab Emirates (UAE), said Premier Datuk Patinggi Tan Sri Abang Johari Tun Openg.

He said the state is looking to emulate Emirates which offers lower airfares when compared to other airlines.

“Our business model is similar to what Dubai, UAE is doing on Emirates where the airfares are very low compared to other airlines, but this has opened up Dubai to the world.

“Thirty years ago, Dubai had nothing but today, it has become a hub in the Middle East.

“So if we use that model, we can then bring tourists into Sarawak and that will give extra economic activities to our people,” he said when officiating the grand opening of Sheraton Kuching Hotel on Sunday night.

He pointed out that with the Sarawak government’s acquisition of MASwings expected to finalise by the third quarter of this year, the state will not be running its airline on a normal business model where the return on investment (ROI) is calculated upon investment on a project.

“As far as Sarawak is concerned… because we are on an island, we need a ‘bridge’ to connect us to other countries and this airline will serve as the bridge.

“When we invested about RM1 billion on the Batang Lupar Bridge, we never talk about ROI of that bridge because its purpose is to facilitate mobility so that the people can move and travel.

“That is why our business model on our airline is similar to a bridge. What is important is the trickle-down effect or the spinoff that will be measured as the success of this airline,” he said.

Abang Johari also hoped that airfares would be stabilised after the state run its own airline.

“Right now, we are celebrating Chinese New Year and the airfares have gone up. In another month it will be Hari Raya Aidilfitri and the airfares will increase again, and again when we celebrate Gawai Dayak in June.

“We are at the mercy of these people. So what we do, we have our own airline, and we will calculate what is the potential airfare in order to avoid others increasing their airfares,” he said.