Setting up Sarawak’s own boutique airline not a good idea – Dr Yii

Dr Kelvin Yii

KUCHING (Dec 1): Bandar Kuching MP Dr Kelvin Yii has shot down the idea of setting up Sarawak’s own boutique airline as it may not be sustainable and economically feasible.

“Instead, the state government should look at working with existing private national and private airlines to improve connectivity, especially domestic routes within Sarawak by offering incentives and even subsidies rather than take on a whole airline company,” he said in a statement.

Dr Yii said setting up the state’s own boutique airline might result in huge economic cost to the state, as well as requiring high investment, high cost and high expertise which may not be beneficial in the long term.

He was responding to Chief Minister Datuk Patinggi Tan Sri Abang Johari Tun Openg’s recent announcement that the state government still intends to establish their own boutique airline if given the mandate in this upcoming state election.

Dr Yii said Abang Johari seemed to be more interested in an ‘image decision’ rather than a ‘business decision’ that may have an impact on the economic future of the state.

He said there were better and more feasible methods for the state government to improve connectivity around Borneo and even to penetrate hubs that are important for tourism, such as Singapore, Kuala Lumpur and Jakarta.

“Running an airline business is very tough, as well as highly regulated in terms of organisational structure, passenger safety regulations, speciality, and other aviation requirements.”

Thus, Dr Yii said the government must reconsider its intention as it would cost a lot of public funds if the airline company was set up, let alone sustaining the business model and maintaining the assets.

Moreover, Dr Yii said Abang Johari must understand the principle that it should not be the business of the government to be in business.

“Their role is to provide a conducive environment and ecosystem for business to thrive or find ways to incentivise private sector to come up with good and sustainable business plan for the people, rather than trying to start their own airlines.”

Dr Yii remarked that the state or even the federal government generally do not have a very good track record of being involved in business due to multiple reasons.

“Particularly so in a highly challenging industry such as aviation which has been deeply affected by the Covid-19 pandemic as well.

“That is why I strongly urge Abang Johari to reconsider his priorities. Maybe he should instead find ways to incentive airlines companies to reduce their ticket prices so that Sarawakians can come back to vote this coming election.”

He said such huge announcement would have major impact on the economic safety of Sarawak and this proved the incumbent Gabungan Parti Sarawak (GPS) administration should not have a free reign in the state.

The Bandar Kuching MP stressed there must be strong check and balance system in the State Legislative Assembly (DUN) and GPS must not be given a ‘blank cheque’ in this upcoming election.

from Borneo Post Online https://bit.ly/3o9qjGs
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