The Malaysia Aviation Group has signed an agreement on the sale and transfer of its MASwing airline to the Sarawak state government with the deal expected to be completed by the end of the year, MAG said on Wednesday.

Malaysia’s Sarawak state acquired a sister company of national carrier Malaysia Airlines, its latest move to boost ownership of strategic assets as it pushes for greater autonomy.

Malaysia Aviation Group has formally transferred ownership of regional unit MASwings to the state government of Sarawak, following the signing of a sale and purchase agreement on 12 February.

Sarawak premier Abang Johari Openg today announced the state will have its own airline, AirBorneo. The Borneo Post reported him as making the announcement in Kuching today after the signing of a sale and purchase agreement formalising the state’s acquisition of rural airline MASwings.