KUALA LUMPUR: Malaysia Airlines Bhd can’t commit to the US$2.25 billion (RM9.32 billion) provisional deal signed last year with Boeing Co to purchase eight Boeing 787 Dreamliner as the national carrier can’t currently ascertain its wide-body plane requirements.
Group chief executive officer Izham Ismail said Malaysia Airlines’ current aircraft fleet of 81 was sufficient for the airline to service its existing network of 58 destinations.
“We will only go to Request for Proposal (RFP) and engage the board depending on our future network plan,” he said, adding that the decision to purchase the aircraft would be based on the need and financial status of Malaysia Airlines.
The provisional deal was made by former prime minister Datuk Seri Najib Razak during his visit to the United States last year.
Najib had told United States President Donald Trump that Malaysia Airlines would purchase from Seattle-based Boeing 25 B737 jets and additional eight 787 Dreamliners.
The deal lapsed last Wednesday.
Izham said the RFP would come into play when the airline’s 15 units of wide-body Airbus A330-300 started to age and come off leasing agreement by 2023.
“Hence, we need to get a replacement programme. Once Malaysia Airlines is stable and there is growth requirement, we will be able to consider new aircraft purchases,” he said, noting that the new generation wide-body planes must fit into Malaysia Airlines’ future network aspirations.
Izham said there were several options to procure new aircraft, such as through internal funding, bank financing, or dry lease from lessors.
While the new 787 Dreamliner planes were not an option for Malaysia Airlines now, Izham said these aircraft could be deployed to serve cities with high capacity, especially those with slot constraints.
He said Malaysia Airlines currently had the right number of aircraft consisting of six Airbus A380, six A350 and 21 A330, besides 48 B737-800.
“We are very cautious in our investments portfolios, in particular plane purchases. The MRP (MAS Recovery Plan) saw a re-design of our network where focus is now on the Asia-Pacific region. This is where the two huge growth markets — India and China — are. We are well-placed to capitalise on this, and leveraging strongly with our partners is the key,” he said.