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Press Releases 31 Mar 2008
Malaysia Airlines to Buy Up To 55 Boeing 737-800 at Usd4.2 Billion, Takes Delivery of A380 In 2011
Subang: Malaysia Airlines today announced its narrowbody fleet acquisition plan which saw the national carrier ordering up to 55 B737-800 aircraft. The national carrier will also take delivery of 6 A380-800 in 2011.
Managing Director/ Chief Executive Officer, Dato' Sri Idris Jala said, "Under our Business Transformation Plan, we are embarking on our network expansion to transform into the World's Five Star Value Carrier."
"I am very excited with these developments as these new fleets will both form a strong platform for Malaysia Airlines to profitably grow. The deliveries will not happen for a few years yet, when the weakness in the global economy should be less of a concern."
"We have placed a firm order for 35 B737-800 with an option for another 20 aircraft. The total cost of the 55 aircraft is USD4.2 billion at list prices."
"We expect to take delivery of the first aircraft from September 2010 onwards, which will be used to replace our existing B737-400 fleet and to allow us to expand to points which were not previously economically viable."
Malaysia Airlines also have the option to swap the B737-800 to the larger B737-900.
He also said, "These aircraft will be used mainly for the ASEAN region, including the domestic sector in Malaysia and the fast growing economies of China and India. Clearly, we are now gearing ourselves to benefit from the growth of this region which is projected at around 6 percent per annum."
"As our aim is to ensure that the aircraft for the core network will always be the latest in terms of technology, we will likely partially purchase the B737-800 on our own and partially lease them as that would give us the flexibility to manage our balance sheet and financing commitments, and to sell some of them when the timing is right."
Jala also announced that Malaysia Airlines will take delivery of all 6 A380-800 in 2011, with the first aircraft to be delivered in January and the sixth in August.
"After extensive discussions with Airbus and Penerbangan Malaysia Berhad, we have agreed on the terms for the delayed delivery of the 6 A380-800 aircraft ordered by PMB in 2003. The terms include an agreed amount of compensation for the delay."
The 6 A380-800 aircraft was supposed to have been delivered from January 2007 to December 2008.
Jala added, "I think today is a good day for Malaysia Airlines, Airbus and Boeing. We kept the A380 on terms that are win-win for us and Airbus. We placed narrowbody jet orders with Boeing. We are happy to work with both aircraft manufacturers."
"We are now looking at the widebody aircraft replacement and will intensify our discussions with the manufacturers. This is again an opportunity for both Airbus and Boeing to make their best pitch for our business. Malaysia Airlines is committed to expand its network for the medium and long haul market."
Issued by: Media Relations Unit, Communications Division, Malaysia Airlines, Subang
For more information, media to contact:
Tan Wai Fong
Tel: (017) 338 9075
Email:
tanwf@mas.com.my
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