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Malaysia Airlines mulling Airbus, Boeing options for next aircraft purchase

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Publish date: Wed, 14 Aug 2024, 11:02 AM

KUALA LUMPUR: Malaysia Aviation Group (MAG) may be eyeing either Airbus A321 or A320, in addition to Boeing B737 MAX 8, for the second batch of its new narrowbody aircraft order.  

The group is currently re-evaluating the request for proposal (RFP) for the second batch. 

MAG group managing director Datuk Captain Izham Ismail said the second batch may see more than 25 narrowbody aircraft being placed although the group aims to have a minimum fleet of 50 single-aisle airplanes by 2035.

"The RFP will be for the second stage for the remaining 25 or more narrowbody (aircraft) and it can be any type. We're agnostic. We'll see what's best on the table," Izham told Business Times in an interview recently.

He hinted that the narrowbody airplanes could be B737 MAX 8 or A321 or A320. 

The option for the widebody Airbus A330neo (new engine option), meanwhile, remain at the moment for the second batch of new aircraft order.

MAG had executed its first batch of new aircraft order for subsidiary Malaysia Airlines as part of the national carrier's fleet renewal programme with 25 B737 MAX 8 in 2017 and 20 A330neo in 2022.

Malaysia Airlines had received four B737 MAX 8 - two in 2023 and another two earlier this year.

The national carrier expects to receive its first A330neo by September this year.

Izham said the first batch of narrowbody order remains despite the delivery delays as the group has already committed to it.

"It is already committed. At this stage, we will not change to other aircraft type. We can't change the model for the first batch because it'll incur additional cost for us.

"So, it's cost effective to maintain the 25 (firm order of the B737 MAX 8)," he added.  

On the second batch of RFP status, Izham said MAG had decided to extend the deadline to the end of the year as the group was re-evaluating its initial fleet renewal programme plans again.

The re-evaluation of the aircraft type is important based on the group's future network and commercial strategy, he said, adding that the group has to be wise in its investment.

He did not discount that the group is aware about the limited factory production slots of new aircraft.

"We're very mindful of that. We're halfway (in terms of the RFP completion) but we're very cognisant it cannot be too long because we would not be able to get the (factory production) slots," said Izham, who started his career as a pilot with Malaysia Airlines.

 

https://www.nst.com.my/business/corporate/2024/08/1091243/malaysia-airlines-mulling-airbus-boeing-options-next-aircraft

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