AirBorneo weighs selling older ATRs ahead of fleet revamp in 2027

KUCHING: AirBorneo Airways Sdn Bhd (AirBorneo) is considering phasing out its older ATR aircraft as the Sarawak-owned carrier prepares to renew its turboprop fleet in the second half of 2027.

Chief executive officer, Megat Ardian Aminuddin, said the airline was examining several options for the aircraft that would leave its fleet.

"We are still discussing that, and there are a few options. Number one is to sell them outright," he told Business Times in a recent interview.

He said AirBorneo had received interest from operators and companies that could acquire the outgoing ATRs, although discussions remained at an early stage.

"It is still very early. The first replacement aircraft will arrive in the third or fourth quarter of 2027, so we still have time to finalise those arrangements," he said.

AirBorneo and turboprop manufacturer ATR announced an agreement during the Singapore Airshow 2026 for eight new ATR 600-series aircraft.

The order comprises five ATR 72-600s and three ATR 42-600s, with purchase rights for four additional aircraft. Deliveries are scheduled between 2027 and 2029.

The new aircraft will replace AirBorneo's existing ATRs on a one-for-one basis.

"The aircraft will still be used primarily for the Rural Air Services operation. It will be a one-in, one-out arrangement, a one-for-one replacement," Megat said.

AirBorneo inherited the turboprop operation from Malaysia Aviation Group subsidiary MASwings when it assumed responsibility for the airline's services on Jan 1, 2026.

The turboprops support Rural Air Services and other routes across Sarawak, Sabah and Labuan.

AirBorneo's six De Havilland Canada Twin Otters will remain in service for the time being. Megat estimated that the aircraft were about 12 to 14 years old.

The airline expects to consider replacing the Twin Otters within the next three to four years, depending on the aircraft available in the market.

The replacement could be another De Havilland aircraft or an aircraft produced by a different manufacturer, he said.

Megat added that older aircraft could be more expensive to operate, but said their continued operation depended on maintenance planning, operational resilience and efficiency.

"All of the turboprop maintenance is carried out in Malaysia," he said.