KUALA LUMPUR: The delayed delivery of Malaysia Airlines Bhd's Boeing 737 MAX 8 aircraft may cast a shadow on the national carrier's overall fleet plan strategy, analysts said.
Sobie Aviation Pte Ltd independent analyst and consultant Brendan Sobie said a short delay would be more manageable for Malaysia Airlines although delayed aircraft delivery is generally not ideal.
"Any further significant delay means Malaysia Aviation Group (MAG) will need to rework its fleet plan as it was relying on these aircraft being delivered from 2023 to 2026 to replace the B737-800s, some of which are being transferred to Firefly," he told the New Straits Times (NST).
Sobie added that if there are any longer delays, Malaysia Airlines would need to retain some of its B737-800s for longer than planned to maintain capacity.
Although the plan is feasible, it could impact the plans for the carrier to refresh its narrow-body jet product as well as the plan to expand Firefly jet operation.
"Certainly, this creates a new unwelcome headache and challenge for MAG, adding to the fact that the first B737 MAX 8 delivery was already delayed by several months based on the new/revised agreement that was announced in early 2022, which included the B737 MAX 8 delivery slots that were to start in early 2023," he said.
Aviation consultancy Endau Analytics founder and aviation analyst Shukor Yusof had the same view whereby Malaysia Airlines would need to continue operating its existing B737-800 fleet longer than it would like to.
However, he said there could be a possibility that the carrier might be compensated for the B737 MAX 8 delay, depending on clauses in the contract.
"Bottomline, Malaysia Airlines' future plans will be affected and management will have to adjust accordingly," he added.
When asked if the recent supply chain issue that resulted in the delay of the first B737 MAX 8 to Malaysia Airlines and possible other carriers would dampen the confidence to fly with the aircraft model, Shukor said it is unlikely.
He said the aircraft had undergone rigorous safety checks and been proven to be airworthy, although it does undermine confidence in Boeing's quality control standards that would only give its rival Airbus further edge.
Last Friday, MAG group managing director Datuk Captain Izham Ismail confirmed the delay of Malaysia Airlines' first B737 MAX 8 aircraft due to Boeing's supply chain hitch.
He said fortunately it was not a safety concern but it had to be addressed to avoid potential issues in the future.
Izham added that there are adjustments that need to be made as the delay would affect Malaysia Airlines' fleet refurbishment plan Firefly's jet operations.
The plan was for the national carrier to refurbish its B737-800 fleet with the new MAX 8 airplanes and transfer the 737-800 narrow-body fleet to its sister airline, Firefly.
"We're truly disappointed. We're working very closely with Boeing and our aircraft lessor, which is the main lessor, Air Lease Corporation (ALC)," he said, adding that the new delivery timing of the first B737 MAX 8 aircraft is yet to be confirmed.
The B737 MAX 8 aircraft was supposed to be the first new aircraft type that Malaysia Airlines would receive after five years. The carrier had ordered a total of 25 of the narrow-body jet in 2016 as part of its fleet refurbishment plan.
Izham also said MAG did not expect further delays of the subsequent 24 aircraft as it believed very strongly that Boeing would be able to fix the issue.
The American plane manufacturer told the NST last week that it had identified fastener holes that did not conform to its specifications in the aft pressure bulkhead on certain B737 aircraft.
"This is not an immediate safety flight issue for the 737 fleet, which can continue operating safely."
"This issue will impact near-term 737 deliveries as we conduct inspections to determine the number of airplanes affected and complete required rework on those airplanes," a Boeing spokesperson said.
The American plane manufacturer added that it was working through the issue with its supplier and continues to deliver the B737 aircraft that are not affected.
The B737 MAX 8 was one of the best-selling passenger aircraft until it was grounded on March 13, 2019 by the US Federal Aviation Administration (FAA) following the two major accidents that claimed 346 lives in the span of five months.
In 2019, former US president Donald Trump announced that both the B737 MAX 8 and MAX 9 aircraft were grounded, making these as the only aircraft type in history to be grounded by a US president.
China was the first country to completely stop flying the B737 MAX 8 in March 2019 followed by Malaysia, Australia, New Zealand, Singapore, France, Italy and the Netherlands.
However in January this year, China Southern Airlines became the first Chinese carrier to start operating two B737 MAX 8 following the nod by the FAA for the aircraft type to resume service in late 2020.
The green light was given after Boeing made a series of software upgrades and training changes.