The holding company for Malaysia Airlines has committed to buy 30 new 737 MAX aircraft, with options to double that number. Boeing noted that the order had been in place since January, but the buyer had not been identified then.
Neither Boeing nor Malaysia Aviation Group reported the value of the order – consisting of 18 737 MAX 8 and 12 737 MAX 10 jets – but it could total $3.8 billion based on listed prices for Boeing’s single-aisle aircraft.
Also unreported is the delivery schedule, which could span several years based on the order backlog for the 737 MAX and the current inconsistencies of Boeing’s production schedule.
"This is a significant investment for Malaysia Aviation Group, enabling us to deliver cutting-edge premium cabin offerings and state-of-the-art technology to our customers," stated managing director Izham Ismail. "The addition of these new airplanes will not only enhance our fleet's efficiency and increase seating capacity, but allow us to elevate the overall inflight experience, with our passengers' needs at the forefront."
Boeing projects aircraft demand in the Southeast Asian region to more than triple over the coming two decades, with nearly 80% of the 4,700 new aircraft to be ordered being narrow-body jets like the 737 MAX.
In comments to the media, and referring to the carrier’s difficulties following two jet crashes in 2014 and more recent investigations into its safety and maintenance record, Ismail observed: "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."
Noting the Malaysia Airlines’ current fleet include several dozen 737 aircraft, Boeing senior vice president Brad McMullen noted, "adding the 737-8 and 737-10 will equip Malaysia Airlines with the operational flexibility, environmental performance and additional capacity they need to better serve a growing number of passengers."
Passenger air traffic across Southeast Asia will more than triple over the next 20 years, as projected in Boeing's Commercial Market Outlook, the company's long-term demand forecast for commercial airplanes and services. Of the more than 4,700 new airplanes expected to be delivered to the region's operators through 2043, nearly 80% will be single-aisle jets, such as the 737 MAX family.
