Malaysian Airline System Bhd may order at least 17 planes to replace its aging Boeing Co 777-200s as the state-run carrier seeks fuel-efficient aircraft to pare costs, a person familiar with the matter said.
Malaysian Air is considering both Boeing and Airbus SAS jets for the order and will take a decision on the manufacturer and type of planes in the first quarter of 2014, said the person, who asked not to be identified as the information is private. The carrier aims to add the new planes starting 2017, the person said.
The company is upgrading its fleet after fuel costs and competition from discount carriers including Malaysia's AirAsia Bhd pushed it into two straight annual losses. Budget operators in Southeast Asia have ordered at least 1,000 new aircraft in the past five years as economic expansion across the region enables more people to start flying in countries such as the Philippines and Vietnam.
Malaysian Air Group chief executive officer Ahmad Jauhari Yahya couldn't be immediately reached for comment as he's traveling overseas. Datuk Najmuddin Abdullah, the airline's head of strategic communications, also didn't respond to an e-mail and telephone calls.
The carrier, based in Subang Jaya, Malaysia, will take delivery of 24 new aircraft this year and another 25 over the next two years, Ahmad Jauhari said in a June 11 interview in Kuala Lumpur. The carrier ordered 15 Airbus and 35 Boeing planes in 2011.
The airline is retiring 30 aircraft from its fleet this year to cut costs. New planes typically consume less fuel than older aircraft. With the retirement of old planes and new aircraft coming, the average age of Malaysian Air's fleet of 110 planes will be 5.4 years by end of this year, Ahmad Jauhari said then.-- Bloomberg
Introducing MY's First IPO Fund for Sophisticated Investors!
MQ Chat
New Update. Discover investment communities that resonate with your ideas
MQ Trader
M & A Value Partners IPO Equity Fund has been launched - Targeted 13% Return p.a
Latest Videos
0:17
New IPO: The largest mini-market player and a leading groceries retailer in Malaysia, 99 Speed Mart Retail Holdings Bhd aims to list on the Main Market!
MQ Trader 145 views | 17 h ago
0:17
New IPO: An enterprise IT solutions provider that provides implementation services, maintenance, support and professional services, Vetece Holdings Bhd aims to list on the Ace Market!
MQ Trader 398 views | 4 d ago
0:17
New IPO: A manufacturing and trading of biomass fuel products, particularly PKS and wood pellets company, Elridge Energy Holdings Bhd aims to list on the Ace Market!
This book is the result of the author's many years of experience and observation throughout his 26 years in the stockbroking industry. It was written for general public to learn to invest based on facts and not on fantasies or hearsay....
Hustle
Positive movement ahead!
2013-11-14 16:52