Carrier to serve Sabah and Sarawak viable, say analysts

A new airline to serve Borneo can also help in the development of the aviation industry in Malaysia.

A collaboration between Sabah and Sarawak will better serve the aviation needs of both states, according to analysts.

Recently, Sarawak tourism, creative industry and performing arts minister Abdul Karim Rahman Hamzah said the state would study a proposal that it collaborated with neighbouring Sabah to introduce a new airline to serve the needs of Borneo. This subsequently led to a proposal that both states collaborated rather than set up separate carriers.

“This situation presents an opportunity for new entrants, especially if existing airlines encounter challenges in periods of peak demand,” Imran said. “Analysing fare structures can also provide insights into whether airlines are involved in price wars. When intense competition leads to unsustainable low fares, it could be indicative of a saturated market,” Imran said.

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