KUCHING: Negotiations to hammer out a commercial agreement and matters related to its operations are holding up the takeover of MASwings by the Sarawak government.
Transport Minister Anthony Loke said the federal government is still hopeful that the Sarawak government plan to turn MASwings into a "boutique" state airline to improve air accessibility into the state will go through.
He said the federal government hopes an agreement could be finalised by the end of the year, as initially targetted.
He said the thrashing out of the agreement was, however, out of his hands as the negotiations do not involve his ministry.
"In principle, we have agreed (to the takeover). No problem with that."
Loke said only a few matters needed to be finalised among the Sarawak government, MASwings parent company Malaysian Aviation Group (MAG), Khazanah Nasional Bhd and Malaysia Airports Brhd (MAB).
The commercial agreement is being negotiated between MAG and the Sarawak government.
MAG is a unit of Khazanah, the national sovereign wealth fund responsible for managing the government's commercial assets and investments.
Sarawak Premier Tan Sri Abang Johari Openg had said MASwings, once it is taken over by the state government, will offer cheaper fares for flights between Sarawak and other destinations in the country.
State Transport Minister Datuk Seri Lee Kim Shin had, in May, said a due diligence process was ongoing and once that was completed, the state government would then enter into negotiations with MAG on the purchase price for the acquisition.