Sabah and Sarawak rural air services back to MAS

PUTRAJAYA: It has come a full circle – the rural air services will be taken from Fly Asian Xpress(FAX) and handed back to Malaysia Airlines(MAS).

Transport Minister Datuk Seri Chan Kong Choy, who announced this Cabinet decision yesterday, gave assurances that it would not affect MAS’ turnaround plan.

“We have gone through the proposal and recommended to the Cabinet that MAS via its subsidiary Firefly be appointed to take over the rural air services.

“We also agreed that the provision of such services is the Government’s responsibility and a type of social service so we will continue subsidising the cost of running these operations, which amount to RM60mil per year, to maintain the low-fare structure.

“Officers from both my ministry and the Finance Ministry will go through all the details of the subsidy,” Chan told reporters at his office.

It has been less than a year since MAS handed over the rural air services to AirAsia, which then subcontracted them to FAX.

Continue reading at: Sabah and Sarawak rural air services back to MAS