MAG ACQUIRES 30 NEW BOEING 737 NARROWBODY AIRCRAFT

PUTRAJAYA,  March 21 (Bernama) -- Malaysia Aviation Group (MAG) has announced the acquisition of 30 new aircraft directly from Boeing as part of its fleet modernisation strategy. 

The order includes 18 Boeing 737-8 and 12 Boeing 737-10 aircraft powered by the CFM LEAP-1B engines, with the option for 30 more 737 aircraft. 

MAG Group managing director Datuk Captain Izham Ismail said the 737-8 and 737-10 selection reflects a careful evaluation of its long-term growth strategy, ensuring the airline has the right aircraft to meet evolving market demands. 

“These next-generation aircraft offer greater fuel efficiency, extended range, and enhanced passenger comfort,” he said at a document exchange ceremony for Malaysia Aviation Group's Narrowbody Aircraft Replacement Order today.

The event was witnessed by Prime Minister Datuk Seri Anwar Ibrahim and attended by Transport Minister Anthony Loke and Investment, Trade and Industry Minister Tengku Datuk Seri Zafrul Abdul Aziz.

Captain Izham said it was MAG’s significant milestone with the commitment to growth and its replacement of Boeing 727-8s. MAG has received 11 of the aircraft with another 14 to come in the next one and a half years.  

He also clarified that the 25 Boeing 727-8s were not part of the order for the new 30 aircraft placed today.

“The expected delivery of the new Boeing 737-8s and 737-10s commences in 2029. However, MAG has the option for 30 more Boeing aeroplanes and it would be a combination of 737-8 or 737-10,” he said. 

The option for more aircraft will be determined around 2027 or 2028, he said, adding that the national carrier will continue its ongoing campaign for wide-body growth.

“We expect the current wide-body orders to grow in the Asia-Pacific circa 2029 onwards,” he said. 

He also noted that the expected compound annual growth rate in Asia Pacific and the region that MAG is servicing, especially ASEAN, is 5.6 per cent over the next five years. 

“Arithmetically, Malaysia Airlines will be behind the curve, especially in ASEAN if we don't invest in our fleet,” he stressed, adding that Malaysia Airlines had a few issues last year managing its ageing fleet and supply chain.

“It is timely that Malaysia Airlines does not repeat the same mistake. So ordering new planes must be well-timed. Otherwise, you end up what we end up missing,” he said. 

With the new addition, MAG will gradually phase out older Boeing 737-800s operated by Malaysia Airlines and aim for a modernised narrowbody fleet of 55 Boeing 737-8s and Boeing 737-10s by 2030. 

The group currently operates a fleet of 113 system-wide, including 42 Boeing 737- 800s under Malaysia Airlines and five under Firefly.

-- BERNAMA