AirBorneo Entrusted To Operate Subsidised RAS Routes
KUCHING: AirBorneo has been entrusted with operating subsidised Rural Air Services (RAS) routes by the Federal Government.
Sarawak Minister for Transport Dato Sri Lee Kim Shin said the RAS, implemented under the Public Service Obligation (PSO) framework, plays an important role in ensuring continued air connectivity for rural and remote communities throughout Sarawak, particularly for routes that are not commercially viable for airlines.
“Under this framework, the Federal Government provides subsidies for RAS routes, while AirBorneo is entrusted with operating the services based on agreed terms and the regulated fare structure set by the Federal Government.
“Any changes involving approved routes, flight frequencies, service reliability, safety and operational performance are subject to the approval of the Federal Government,” he said.
He said this during his ministerial winding-up session at the 19th Sarawak Legislative Assembly (DUN) sitting on Monday.
He added that following the successful acquisition of MASwings, AirBorneo officially commenced operations on 1 January 2026 as Sarawak’s own airline while continuing the responsibility of providing RAS.
According to him, unlike commercial airlines, RAS operators are not solely profit-oriented, but are instead guided by social responsibility as provided under the Federal Constitution.
In a related development, AirBorneo is also planning to gradually expand its operations as a full-service airline through the proposed leasing of three Boeing B737-800NG aircraft for routes from Kuching to Kuala Lumpur, Kota Kinabalu, Jakarta and Singapore by the third quarter of 2026. -UKASnews
