1953–1957: Sabah Airways Ltd. Borneo Airways traced its history to
Sabah Airways Ltd. (SAL), established by the
Straits Steamship Company and the government of
British North Borneo. A subsidiary of
Malayan Airways, the airline was launched in order to provide internal feeder service and rural flights in the territory. The proving flights started in May 1953 followed by a scheduled twice weekly flights in June 1953, linking Jesselton and Sandakan via
Kudat,
Ranau and
Keningau. The operation later continued to
Tawau in September 1953 and
Lahad Datu in 1954. By 1955, the network was broadened into the State of Brunei and the Colony of Sarawak, with the airline acquiring the third
de Havilland Dragon Rapide essential for its expansion. The base was also being shifted to
Labuan Airport, replacing
Sandakan Aerodrome, due to its more central geographical location for the routes.
1957–1965: Borneo Airways Ltd. s in front of a
Douglas DC-3 aircraft In 1957, the North Borneo Government with the government of
Sarawak and Brunei established a new company in association of
British Overseas Airways Corporation and
Malayan Airways to form Borneo Airways, a successor of Sabah Airways. The company raised its capital amount to $580,000 of which 51% of its shares were jointly owned by the British Borneo Government. Conversely, the British Borneo Governments also possessed a minority stake on the Malayan Airways Limited. The new company was registered in Kuching, Sarawak; while its main operating & maintenance base, hangar and company headquarter remained in Labuan. The company was delegated the task to operate and further developing the internal air services between the three territories. By 1958, all of the former Sabah Airways assets were officially shifted into Borneo Airways. The airline acquired 2 new
Scottish Aviation Twin Pioneer in April 1958, originally purchased jointly by the Governments of Sarawak, Brunei and North Borneo in January 1956. The aircraft is able to carry 16 passengers and was used to replace the feeder flights operated by
de Havilland Dragon Rapide. The planes bearing the North Borneo
aircraft registration codes VROAE and VROAF are being featured with an updated visual elements: These include an updated color scheme of
royal blue and white, together with a new emblem for Borneo Airways Ltd. The emblem comprises the crests of the three Borneo Governments positioned over a set of white wings. During its first year of operation in 1957/1958, the airline projected a loss of $174,000 after recorded an operating revenue of $1,150,848 on the same year. By 1960, it had registered 32,782 passengers for the year 1959/1960, a 35% growth compared to the previous year. During the same period, Borneo Airways flew 76 tonnes of mail and recorded 187 tonnes of cargo. The passenger growth continued the following year, registering 46,183 passengers in 1961, marking a 25% increase. The company received its first
DC-3 leased from Malayan Airways on 31 August 1962 for its high demand
trunk routes. The aircraft was specially modified to increase the seat capacity from 28 to 30 seats and was equipped a refrigerator for its light meal and refreshment service during flight. The inaugural flight for the DC-3 service was commenced on 1 September 1962 between Tawau-Lahad Datu-Sandakan-Jesselton; by 6 September 1962, the flight was extended southbound to include Brunei Town (present-day
Bandar Seri Begawan) and
Bintulu under a twice-weekly service. 3 local
air hostess were also trained in Labuan to serve the route. In 1963, Borneo Airways received another 30-seater
DC-3 to accommodate the increasing passenger traffic growth from the main urban and commercial areas of the British Borneo Territories. Based on this partnership, the Malayan Airways route to and from Singapore was streamlined with the local Borneo Airways schedule. This was done in order to provide practical
transfer time for the passengers connecting on
multiple destinations via the two carriers.
1963–1965: Merger with Malaysian Airways , similar to the aircraft that had been stationed in
East Malaysia in 1965. The aircraft was introduced in order to replace the aging
DC-3 of its Borneo Airways predecessor. The possibility of unification between Malayan with Borneo Airways to form Malaysian Airways was purposed as early as April 1963 by Captain R.P Mollard, the General Manager of Malayan Airways, anticipating of the
Formation of Malaysia originally scheduled on 31 August 1963. In November 1963, Malayan Airways was effectively renamed as Malaysian Airways Limited. In April 1964, the Transport Minister of Malaysia,
Tan Sri Haji Sardon has mooted the prospect of merger between Malaysian Airways and Borneo Airways. The aim was to provide an efficient service under a single company and administration, as well as a better integration of the newborn country. An increased air connectivity between
East and
West Malaysia, together with a uniform rates resulting a reduction of fares within the inter-Borneo flights were also expected following the consolidation. At the time of the takeover, Borneo Airways fleet consisted of 3
Douglas DC-3 and 2
Scottish Aviation Twin Pioneer aircraft. Upon the inception, Malaysian Airways stationed 2 40-seater
Fokker F27 Friendship to be based in East Malaysia to replace the DC-3 aircraft, and the thinner
frontier routes operated by
Twin Pioneer aircraft were rebranded from "Ulu Air Service" to "Rural Air Service" under Malaysian Airways. ==Fleet==