What Jet Fleet Will AirBorneo Choose for Its Regional Airline Expansion?

The Sarawak government’s new airline, AirBorneo, officially launched its inaugural flights on January 2, 2026, from Kuching International Airport (KIA). The launch followed the successful completion of the MASwings takeover on January 1, 2026. This milestone marks the start of a new era for the state’s aviation sector.

Sarawak Minister of Transport Dato Sri Lee Kim Shin confirmed that a professional study is now underway. The goal is to transform the new entity into a fully-fledged commercial regional airline. A critical part of this AirBorneo next phase involves assessing the ideal jet fleet options for future regional routes. The airline is currently the legal owner, having obtained its air operating licence.

Dual Mandate and RAS Operations

AirBorneo operates under a unique dual mandate. The first mandate is to provide essential Rural Air Services (RAS). This service connects remote communities across Sarawak, Sabah, and Labuan. It operates under a highly subsidized Public Service Obligation (PSO) agreement. The federal government continues to fund the subsidy for these routes.

For 2026, the airline will continue the existing RAS model. The current fleet for these routes includes the ATR 72-500 and the Twin Otter Viking DHC6-400 aircraft. The government is also planning a possible five-year outlook for the subsidy model. This requires close coordination with the federal Ministry of Transport.

The Regional Expansion Study

The second mandate is the development of the commercial regional airline. Regional flying is expected to begin at a later stage, with routes possibly introduced from July onwards. Minister Lee stressed that the process is complex and requires expert input. Decisions on the business model and aircraft types will only be announced after thorough studies and analysis.

“We need to do things professionally,” Lee stated. This includes ensuring regulatory compliance. AirBorneo must apply for changes to its AirBorneo air operating licence to include regional services. Sarawak Secretary Datuk Amar Mohamad Abu Bakar Marzuki, the AirBorneo Holdings chairman, noted the airline will adopt a collaborative model. It plans to work closely with other carriers to deliver quality services.

Jet Fleet Options in Focus

The AirBorneo fleet study will weigh various factors, including aviation fuel supply and operational considerations. The choice of regional jet is crucial for the Sarawak government airline’s long-term viability. In the Southeast Asian market, airlines are increasingly looking at regional jets for connecting secondary airports.

Potential jet fleet options typically considered by regional carriers include the Embraer E2 family (like the E190-E2) and the Airbus A220. Additionally, Chinese manufacturer COMAC is actively targeting the ASEAN region with its ARJ21 and C909 regional jets. The selection will determine the airline’s operational costs and route flexibility.

Industry Impact and Outlook

This move by the Sarawak government airline is a strategic effort to strengthen air connectivity. Aviation is seen as a necessity for the geographically dispersed state, supporting trade, tourism, and healthcare access. The long-term vision aims to position Sarawak as a key player in the regional aviation landscape. The regional expansion plans must align with international standards set by bodies like the ICAO and local regulations from the Civil Aviation Authority of Malaysia (CAAM). Stakeholders are keenly watching the fleet decision, which will signal AirBorneo’s competitive strategy in the dynamic Southeast Asian market. Read more commercial aviation news at flying.flights.