This merger facilitated the continuation and expansion of rural air services in Sabah and Sarawak, ensuring essential transportation links for remote communities and maintaining connectivity across East Malaysia's less accessible regions.

[19][20][21] In June 2010, MASwings expanded its international operations further within the BIMP-EAGA framework, which aimed to foster closer regional ties between Southeast Asian nations.

[24] Between 2012 and 2017, MASwings continued to solidify its position as a key regional carrier in East Malaysia, with an emphasis on providing air services to underserved rural areas.

The airline's focus remained on supporting local tourism and connecting remote communities with urban centers, making it an essential part of the region's transport network.

The airline continued to play a critical role in the BIMP-EAGA initiative, which fostered regional collaboration by improving connectivity between Brunei, Indonesia, Malaysia and the Philippines.

This period saw the airline continuing to operate to destinations like Kota Kinabalu, Kuching, Miri and Labuan, along with its sole international route to Tarakan, Indonesia.

[27] The COVID-19 pandemic in 2020 significantly impacted MASwings, as the Movement Control Order (MCO) led to flight suspensions and a sharp decline in passenger numbers.

[28] However, in 2022, MASwings permanently discontinued its sole remaining international route, operated using an ATR 72 aircraft, which connected Tawau in Malaysia to Tarakan in Indonesia.

The airline announced plans to adopt sustainable aviation fuel (SAF) derived from microalgae as part of its efforts to reduce its carbon footprint.

The acquisition aims to enhance Sarawak's connectivity and expand regional routes, supporting the state's efforts to improve air service availability and stimulate local economic growth.

[25] Initially expected to be completed by December 2024, the process was delayed to the first quarter of 2025 due to discrepancies in asset valuations between the Sarawak government and Malaysia Aviation Group (MAG), necessitating a third-party assessment.

The signing of the Sale and Purchase Agreement in Kuching marked the official transfer of ownership, enabling Sarawak to establish its own state-owned airline.

The formation of AirBorneo aligns with the state’s long-term objective of enhancing air connectivity, supporting economic development and positioning Sarawak as an aviation hub within Borneo.

[32] AirBorneo was conceptualised as a full-service carrier with a dual mandate: to improve regional and international connectivity while maintaining its commitment to Rural Air Services (RAS) in Sarawak and Sabah.

[10] Premier of Sarawak, Abang Johari Openg emphasized that the establishment of AirBorneo would contribute significantly to tourism growth, investment opportunities and employment creation within the state.

The government also announced plans for fleet modernisation and the introduction of new international routes as part of its broader strategy to strengthen Sarawak’s presence in the regional aviation sector.

[33] Malaysia Aviation Group stated that the transfer would be completed by the end of 2025, in coordination with stakeholders, including Khazanah Nasional Berhad, to ensure compliance with regulatory requirements.

On 28 February 2012, MASwings announced plans to replace its aging DHC-6 Twin Otters with newer models, including the Dornier 228NG and Viking Air DHC-6 Series 400.

However, due to disputes over the RAS (Rural Air Service) contract, some routes were removed in 2015 and the newer ATRs were withdrawn prematurely, with further orders canceled.