KUCHING, Jan 2 — Contracts and memorandums of understanding (MoUs) with oil companies such as Petroliam Nasional Berhad (Petronas) and Petroleum Sarawak Berhad (Petros) are being considered as part of studies to help lower AirBorneo’s operating costs, said Datuk Seri Lee Kim Shin.

The state transport minister noted that fuel is one of the largest cost components in airline operations.

“Yes, certainly. We really need experts to look into all this. We will do it professionally and we will study what is in the best interests of AirBorneo and the best options available,” Lee told a press conference for AirBorneo’s inaugural flight launch at Kuching International Airport.

Lee was responding to a question on whether AirBorneo plans to enter into an agreement with Petronas or Petros amid fluctuating fuel prices.

He explained that AirBorneo is currently in an interim phase following its takeover of MASwings on January 1.

“We just took over. This is an interim measure at the moment. We just got the Air Operating Licence. From now, we are the legal owner of the airline taking over MASwings acquisition. Give us a bit of time. We will work this out,” he said.

He pointed out that AirBorneo operates under a dual mandate.

One aspect involves providing rural air services to remote communities under a public service obligation (PSO) agreement, while the other focuses on regional commercial flights, which will be developed at a later stage.

“For this year, it has more or less been set, but we will look into the longer term. We are also planning maybe for the next five years on the subsidy model for the rural air services,” he said.

He noted that all operational expansions, including regional routes, will be subject to regulatory approvals, aircraft availability, market demand, and route sustainability.

On workforce development, Lee said AirBorneo would collaborate with local institutions including i-CATS University College, Centre for Technology Excellence Sarawak (Centexs), Swinburne University of Technology Sarawak Campus, and Curtin University Malaysia to build skills across the aviation value chain.

Today’s inaugural flights from Kuching to Mukah and Tanjung Manis carried 54 and 15 passengers, respectively. — The Borneo Post