02 Agustus 2016

[020816.EN.AIR] Malaysia Airlines Orders 25 Boeing 737 Max Jets With Options For 25 More

MALAYSIA Airlines has placed an order with Boeing for 25 B737 Max jets. It is the first time the carrier has sought to expand its fleet since two fatal air crashes in 2014 induced the government to assume control of the company.

The airline also has options for 25 more, with the combined deal valued at US$5.5 billion including the options, the airline said in a statement. Deliveries of the aircraft are scheduled to commence in 2019, reported Bloomberg.

The order is for a mix of 737 Max 8 and 9 models, which have a list price of $110 million and $116.6 million each, according to US aircraft manufacturer.

The addition to its fleet may help Malaysia Airlines, which is in the midst of a MYR6 billion (US$1.5 billion) business overhaul, compete against a slew of budget carriers in the region.

Passenger confidence in the carrier, now fully owned by sovereign wealth fund Khazanah Nasional Bhd., took a dive two years ago after Flight MH370 vanished on March 8, 2014 and another was shot down over Ukraine four months later.

The airline last month named Peter Bellew as chief executive officer, its third in two years, adding the appointment will ensure continuity in the execution of the turnaround plan.

Source : HKSG.

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