The Sarawak state government has announced the launch of its new airline, AirBorneo, following the acquisition of MASwings from the Malaysia Aviation Group (MAG). This makes Sarawak the first state in Malaysia to own an airline.

Malaysia’s Sarawak state acquired a sister company of national carrier Malaysia Airlines, its latest move to boost ownership of strategic assets as it pushes for greater autonomy.

The Malaysia Aviation Group has signed an agreement on the sale and transfer of its MASwing airline to the Sarawak state government with the deal expected to be completed by the end of the year, MAG said on Wednesday.

Sarawak premier Abang Johari Openg today announced the state will have its own airline, AirBorneo. The Borneo Post reported him as making the announcement in Kuching today after the signing of a sale and purchase agreement formalising the state’s acquisition of rural airline MASwings.