Malaysia Airlines Berhad (Malaysia Airlines)and Boeing [NYSE: BA] announced today a deal for 50 737 MAX aircraft, with 25 firm orders and 25 purchase rights. The deal is valued at $5.5 billion dollars at current list prices and deliveries will commence in 2019.
“This deal is a game-changer for Malaysia Airlines with much lower costs and greater efficiency which we will pass on to our loyal customers with lower fares” said Peter Bellew, Malaysia Airlines’ Chief Executive Officer. “With the 737 MAX’s longer range capabilities, we will be able to connect our passengers to more destinations, in greater comfort and with superior economics.”
The Malaysian national carrier has operated almost every derivative of the 737 airplane family and took delivery of its 100th 737 in December 2014. Malaysia Airlines currently operates 56 737-800s. Malaysia will take delivery of a mix of 737 MAX 9 and 737 MAX 8 aircraft.
“The 737 MAX will continue the superior operating economics and reliability of the 737 that Malaysia Airlines has depended on for more than 40 years,” said Dinesh Keskar, senior vice president, Asia Pacific & India Sales, Boeing Commercial Airplanes. “We are honoured to continue our long partnership with Malaysia Airlines and welcome them to the growing 737 MAX family.”
Commenting further on the aircraft Peter Bellew said:- “These new Boeing 737 MAX contain new features which will significantly lower Malaysia’s operating costs, including:-
- 737 MAX 9 aircraft with 180 seats (18 more (12%) than Malaysia’s existing 160 seat fleet).
- New Boeing Sky Interior to enhance customers’ onboard experience.
- New slimline seats with more leg room.
- New WiFi Enabled Fast internet onboard.
- New CFM LEAP-1B engines, which combined with the Advanced Technology winglet and other aerodynamic improvements, will reduce fuel consumption by up to 15% in Malaysia’s configuration and reduce operational noise emissions by 40%.
“Malaysia Airlines is now on a path to growth across the Asean region. This new aircraft order will set the stage for our continued recovery and success into the next decade said Peter Bellew.