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MAS seeking more details from Boeing

KUALA LUMPUR: MALAYSIA Airlines (MAS) is evaluating its middle- and long-term fleet requirements based on the next phase of its turnaround strategy.

The national carrier said it had written to American aircraft manufacturer Boeing to seek more technical details ahead of the carrier’s delivery order expected next year.

MAS was responding to questions about whether the airline was considering cancelling the order in light of the recent fatal crash of the Ethiopian Airlines flight on Sunday morning involving a new Boeing 737 MAX 8.

MAS had, in July 2016, announced an order of 50 Boeing 737 MAX aircraft valued at US$5.5 billion at list prices. The deal consists of 25 firm orders and 25 purchase rights.

MAS said the aircraft were expected to be delivered beginning in June next year, adding that the airline would update the market once a decision was made.

“However, it is still too early to make any comments as the cause of the incident has yet to be ascertained. However, safety is of the utmost importance for the airline and we are taking the incident very seriously,” a MAS spokesman told the New Straits Times yesterday.

Earlier, Economic Affairs Minister Datuk Seri Azmin Ali asked Khazanah Nasional Bhd to review MAS’ purchase of the aircraft.

It was reported that the Ethiopian Airlines flight en route to Nairobi, Kenya, crashed minutes after taking off from Addis Ababa, killing all 157 people on board. Victims were from 35 countries.

The incident was the second tragedy involving a Boeing plane in less than five months, following the Lion Air flight that crashed over the Java Sea in October, killing 189 people.

There has been no evidence that the two incidents are linked in causality.

Previously, MAS group chief executive officer Captain Izham Ismail had said the airline would need a replacement programme once the airline was stable. Only then could it consider new aircraft purchases.

He said there were several options to procure new aircraft, such as through internal funding, bank financing or dry lease from lessors.

He said Malaysia Airlines currently had the right number of aircraft, consisting of six Airbus A380s, six A350s and 21 A330s, besides 48 B737-800s.

“We are very cautious in our investment 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 told the NST.

Airlines in China grounded all Boeing 737 MAX aircraft after receiving a notice from the Civil Aviation Administration of China yesterday as a safety measure. It was reported that airlines in China operate more than 90 Boeing MAX aircraft.

Since its inception in 2017, the 737 MAX was Boeing’s latest updated version of narrow-body and fuel-efficient short-range aircraft in the market.

Airlines that operate the aircraft include Norwegian Air and Alitalia, which are members of the Star Alliance.

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