Mp Warns Of High Cost In Sarawak S Airline Plans

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Bandar Kuching MP Dr Kelvin Yii said the four turboprop 120-seater aircraft being considered by the Sarawak government could cost up to RM623 million in total.PETALING JAYA: Bandar Kuching MP Dr Kelvin Yii says starting a state-owned boutique airline in Sarawak involves a complex and capital-intensive process.
Yii said based on his calculations, purchasing or leasing an aircraft would incur significant costs that might amount to billions of ringgit.
“The (Sarawak) premier (Abang Johari Openg) said they are looking at obtaining at least four turboprop 120-seater aircraft, which a general search shows may cost up to US$35 million each which converts to RM623 million for all four aircraft, depending on their specifications,” he said in a statement.
Ads by Kiosked“It’s important to note that the cost of purchasing an aircraft is just one part of the overall cost of ownership, which includes ongoing maintenance, fuel, insurance and other expenses.”
Even if the state government is looking to lease the aircraft, Yii estimated that it would cost up to US$200,000 (RM890,000) per month.
“It’s important to note that these estimates are just rough figures, and actual costs may vary depending on the specific requirements of the lease agreement,” he said.
The DAP lawmaker added that subsidies for non-profitable routes, particularly those to the interior of Sarawak, would eventually be required.
“Based on parliamentary records, under the current agreement, the federal government provides RM190 million in annual subsidies to MASwings, which operates a fleet of 16 turboprop aircraft to 49 remote towns and villages in Sabah and Sarawak.
Yii said the estimated start-up cost could instead be used to give a subsidy of RM150 for up to 6.7 million tickets for Sarawakians or 2,000 Sarawakians per year for 3,334 years.
Ads by KioskedOn Saturday, Abang Johari defended the state’s plan to set up its own boutique airline, saying that he would not have sought approval from the federal government if he had not done his homework.
He also said the business model for the boutique airline would also be different. - FMT

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