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MAG to buy 18 Boeing 737 MAX 8, 12 MAX 10 jets

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Malaysia Airlines modernising aging fleet after safety

concerns

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Group to consider option for 30 more jets depending on

market

conditions

By Ashley Tang

KUALA LUMPUR, March 21 (Reuters) - Malaysia Aviation

Group, the parent company of Malaysia Airlines, said on Friday

it will purchase 30 new Boeing 737 aircraft for 2029

delivery, as it seeks to modernise the flag-carrier's fleet and

rebound from a series of setbacks.

The group has agreed to buy 18 Boeing 737 MAX 8 and 12 of

the 737 MAX 10 planes, MAG managing director Izham Ismail said.

MAG declined to reveal the value of the deal.

The group includes Malaysia Airlines, short-haul airline

Firefly and pilgrimage airline Amal, with a mixed fleet that has

both Airbus and Boeing ( BA ) planes. It was not immediately

clear how many of the new jets would be allocated to each

carrier.

Malaysia Airlines has struggled to recover from two deadly

disasters in 2014 and has been steadily renewing its fleet. The

airline was delisted in 2014 and its former parent Malaysian

Airline System was restructured into MAG under the ownership of

sovereign wealth fund Khazanah Nasional.

Malaysia Airlines temporarily reduced its flights after it was

investigated last year by Malaysia's civil aviation authority,

which found several significant safety and maintenance issues.

"It's very timely that Malaysia Airlines does not repeat the

same mistake. So, the ordering of new planes must be well-timed,

otherwise we will end up as we did last year," Izham told a

press conference, describing the purchase as a very important

milestone.

The decision to buy the aircraft was based on extensive

evaluation such as fuel efficiency, environmental

sustainability, operational performance, and technical

reliability, Izham said.

The deal included an option to purchase a further 30 jets,

which he said would depend on market conditions.

"Malaysia Airlines has to prove its credibility, that it is

able to sustain its trajectory sustainably, commercially, and

financially, then we'll make that decision," he said.

In February 2022, MAG agreed to lease 25 new Boeing 737 MAX 8

jets from Air Lease Corporation for delivery by 2026. The first

of the planes arrived in November 2023. MAG in 2022 also said it

would acquire 20 new Airbus A330neo jets by 2028, the

first of which arrived in November.

Izham said they have already received 11 aircraft from the

2022 agreement on the Boeing ( BA ) jets and the remaining 14 would

arrive in the next 18 months.

Malaysian Prime Minister Anwar Ibrahim, who attended the

signing, said he was pleased to see Malaysia Airlines continue

its longstanding relationship with Boeing ( BA ).

"I trust that Boeing ( BA ) and GE Aerospace will recognise this

partnership as a valuable opportunity to strengthen their

presence in Malaysia," he said.