By Ts Dr. Hj Ramli Amir, former President of the Chartered Institute of Logistics and Transport (CILT) Malaysia and Vice-President of CILT International for Southeast Asia
KOTA KINABALU: The feasibility of Sabah establishing its own airline appears uncertain and faces several challenges. Sabah Air Aviation Sdn Bhd (SAASB), a state-owned general aviation business, had initially expressed interest in starting scheduled passenger flights as early as 2024 using three leased aircraft.
However, recent statements from SAASB chairman Kenny Chua indicate a more cautious approach, suggesting it may be a long-term plan that could take up to five years to materialize.
Challenges and Considerations
Financial Viability: The recent collapse of MYAirline has reinforced the need for a solid business case and financial stability for any new airline venture.
Market Competition: Sabah’s capital, Kota Kinabalu, is already well-connected by various operators including Malaysia Airlines, Firefly, and AirAsia. This existing competition could make it difficult for a new entrant to establish itself.
Infrastructure and Resources: While Sabah Air has experience in general aviation, transitioning to scheduled passenger operations would require significant investment in aircraft, personnel, and infrastructure.
Regulatory Hurdles: Establishing a new airline involves navigating complex aviation regulations and obtaining necessary licenses and approvals.
Alternative Approaches
- Collaboration with Sarawak: There are indications that Sabah might consider participating in Sarawak’s planned takeover of MASwings, which could be a more feasible approach to improving regional connectivity.
- Expanding Existing Services: AirAsia, the largest airline operating in and out of Sabah, aims to fly more than two million guests to Sabah in 2024. Leveraging existing carriers to increase connectivity might be a more practical short-term solution.
- Focus on Infrastructure: The state is already investing in airport expansion, with RM253 million allocated for expanding Tawau Airport.
Improving infrastructure could attract more airlines and flights without the risks of establishing a new carrier.
Students’ predicaments
The government is taking several steps to address the challenges faced by Sabah students and other travellers, particularly regarding high airfare prices during peak periods.
Current Initiatives:
Ceiling Price Policy: The government has maintained a RM599 ceiling price for flights between the peninsula and Sabah/Sarawak during festive seasons. This helps to control extreme price surges during peak travel times.
FLYsiswa Program: This initiative provides a RM300 voucher to eligible students for domestic flights between the peninsula, Sabah, Sarawak, and Labuan. The program has been made an annual initiative, offering consistent support to students.
State-Level Assistance: The Sabah government has introduced a RM600 airfare subsidy for Sabahan students studying in Peninsular Malaysia, Sarawak, and Labuan.
Intra-State Travel Subsidy: A RM300 subsidy has been announced for Sabahan students studying within Sabah to help with travel expenses when returning to their hometowns during festive seasons.
Conclusion
While the idea of a Sabah-owned airline aligns with the state’s ambitions for economic growth and improved connectivity, the current climate suggests that immediate implementation faces significant challenges. A more gradual approach, focusing on partnerships, infrastructure development, and leveraging existing carriers, might be more feasible in the short to medium term. Any decision to establish a state-owned airline should be carefully considered within the broader context of Sabah’s economic development plans, such as the proposed Sabah Economic Model (SNEM), to ensure alignment with long-term economic goals and sustainability.
