Malaysia Airlines Explores Acquisition of New Boeing Jets Amid China Delivery Uncertainty
Malaysia Aviation Group in talks with Boeing to secure earlier deliveries if Chinese airlines halt taking planes due to US-China trade tensions
Malaysia Airlines' parent company, Malaysia Aviation Group (MAG), is engaged in discussions with Boeing regarding the potential acquisition of new jets that may become available should Chinese airlines cease taking deliveries.
This development comes as Boeing appears to be returning some of its 737 MAX jets from China to the United States, where they were initially placed ahead of delivery to Chinese customers.
The reason behind the return of these jets remains unclear, with neither Boeing nor China providing comment on the matter.
MAG's managing director stated that if Boeing delivery slots become available due to the US-China trade tensions, the company views this as an opportunity to secure earlier-than-expected deliveries.
Airlines worldwide are currently facing extended delivery times for new planes due to post-pandemic supply chain bottlenecks and a production slowdown at Boeing resulting from enhanced regulatory scrutiny and a labor strike.
MAG aims to operate a narrow-body fleet of 55 new generation 737 MAX aircraft by 2030 and has existing plans to purchase 18 737 MAX 8 and 12 737 MAX 10 aircraft, with an option for 30 additional jets.
The company also has a deal in place to lease 25 737 MAX jets from Air Lease Corp between 2023 and 2026. Any potential arrangement to take on additional planes from vacated delivery slots would require MAG to secure additional funding through the capital market, as it would not be part of the existing Air Lease Corp agreement.
This development comes as Boeing appears to be returning some of its 737 MAX jets from China to the United States, where they were initially placed ahead of delivery to Chinese customers.
The reason behind the return of these jets remains unclear, with neither Boeing nor China providing comment on the matter.
MAG's managing director stated that if Boeing delivery slots become available due to the US-China trade tensions, the company views this as an opportunity to secure earlier-than-expected deliveries.
Airlines worldwide are currently facing extended delivery times for new planes due to post-pandemic supply chain bottlenecks and a production slowdown at Boeing resulting from enhanced regulatory scrutiny and a labor strike.
MAG aims to operate a narrow-body fleet of 55 new generation 737 MAX aircraft by 2030 and has existing plans to purchase 18 737 MAX 8 and 12 737 MAX 10 aircraft, with an option for 30 additional jets.
The company also has a deal in place to lease 25 737 MAX jets from Air Lease Corp between 2023 and 2026. Any potential arrangement to take on additional planes from vacated delivery slots would require MAG to secure additional funding through the capital market, as it would not be part of the existing Air Lease Corp agreement.