Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, has made a significant investment decision to modernise its fleet and recover from operational disruptions. The company announced the purchase of 30 new Boeing 737 aircraft, scheduled for delivery in 2029.
MAG CEO Izham Ismail stated that the order includes 18 Boeing 737 MAX 8 and 12 Boeing 737 MAX 10 aircraft. The financial details of the agreement have not been disclosed.
Malaysia Aviation Group operates Malaysia Airlines, Firefly, which focuses on short-haul flights, and Amal, which specialises in Hajj services. The group currently maintains a mixed Airbus and Boeing fleet, but it has not yet been confirmed which airline brands will receive the new aircraft.
Restructuring After Past Crises
Malaysia Airlines has faced a long recovery process following two tragic accidents in 2014. Additionally, a recent investigation by the Malaysian Civil Aviation Authority identified deficiencies in safety and maintenance procedures, leading to a temporary reduction in flight operations last year.
CEO Izham Ismail emphasised the importance of strategic timing in fleet expansion, stating,
“If such mistakes are repeated, past setbacks could resurface. This aircraft acquisition is a major milestone for us.”
The agreement also includes an option to purchase 30 additional aircraft, depending on market conditions. Izham highlighted that this decision was based on detailed financial and operational analyses, adding,
“We will consider additional orders once Malaysia Airlines proves its reliability and sustainable growth.”
Ongoing Government Support and Boeing Partnership
Malaysia Airlines was delisted from the stock exchange in 2014 and restructured under the state-owned sovereign wealth fund Khazanah Nasional.
Malaysian Prime Minister Anwar Ibrahim welcomed the agreement, stating,
“Malaysia Airlines’ continued partnership with Boeing is of strategic importance to our nation. This collaboration presents new investment opportunities for Boeing and GE Aerospace in Malaysia.”
MAG has been actively renewing its fleet in recent years. In February 2022, the company leased 25 Boeing 737 MAX 8 aircraft from Air Lease Corporation, with 11 already delivered and the remaining jets expected within 18 months.
Boeing Global President Brendan Nelson announced at the signing ceremony that the company aims to increase its workforce in Malaysia by 20% over the next two years.
The new Boeing aircraft will be equipped with CFM LEAP-1B engines, produced through a joint venture between GE Aerospace and Safran.
Additionally, in 2022, MAG placed an order for 20 Airbus A330neo aircraft, scheduled for delivery by 2028. The first of these jets joined the fleet in November 2022.
