MASwings may operate independently under new business plan

MASwings Sdn Bhd has hinted that it will operate independently to allow the community airline to be known as the regional airline under a new business plan set for implementation next year, if it gets the nod from the government.

Its CEO Captain Ritzerwan Rashid refused to confirm speculations that MASwings would operate independently next year but gave a broad hint that its new business plan would include expanding its operation as far as to China and at the same time continue with its Rural Air Services (RAS) in Sabah and Sarawak.

"For the moment, I believe Sabah and Sarawak has expressed that particular wish (MASwings to operate independently) and for me, it is a good idea," he told reporters after the launch of MASwings Travel Fair Roadshow RM88 by State Communication and Sport Assistant Minister Datuk Lee Kim Shin here Saturday.

Ritzerwan said at present, MASwings' headquarters will be maintained at Kota Kinabalu, Sabah but he did not rule out the possibility of reassessing Maswings infrastructure to prepare itself to be the regional airline operator.

On the impact of the Goods and Services Tax (GST) beginning April 1 next year that will likely affect the price of airfares for local and international destination, he said MASwings would be affected with the implementation but as of now it was too early to speculate on the ticket pricing.

He said the price of airfares would largely depend on certain routes, oil prices and not focusing on GST alone.

On Oct 14, the Prime Minister Datuk Seri Najib Razak had given his guarantee that the government would consider in detail the new business plan of Malaysia Airlines (MAS) subsidiary, MASwings.

The plan would be announced at an opportune time when the business plan of the 'New MAS' is approved, he said in a written reply to a question from Teresa Kok (DAP-Seputeh), who wanted to know whether the restructuring of MAS would affect the unprofitable rural routes now served by MASwings.

On Aug 29, Khazanah Nasional Bhd announced a RM6 billion plan to revive MAS that includes cutting 30 per cent of the airline's workforce and a greater emphasis on profitable regional routes.

MASwings officially began operations on Oct 1, 2007 to serve rural routes in the two states as well as the Brunei-Indonesia-Malaysia-Philippines East Asean Growth Area (BIMP-EAGA).