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.

MASWings is owned by Malaysia Aviation Group, which in turn is wholly owned by the country’s sovereign fund Khazanah Nasional Bhd. The deal would make Sarawak the first Malaysian state to own an airline.

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 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 has officially unveiled its own airline, AirBorneo, following the acquisition of MASwings. The state’s Premier, Datuk Patinggi Tan Sri Abang Johari Tun Openg, announced the establishment after the signing of the Sale and Purchase Agreement (SPA) between the local government and Malaysia Aviation Group (MAG).

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.