Boeing lands $5.5 billion deal with Malaysia Airlines
Malaysia Airlines has announced plans that it will be purchasing 50 Boeing aircraft for $5.5 billion as it continues to recover lost business after two major disasters in 2014.
Malaysia’s national carrier said that it has placed firm orders for 25 Boeing 737 MAX jets as well as purchase rights for another 25 with deliveries to commence in 2019.
Newly appointed CEO Peter Bellew said: “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.”
Malaysia’s state investment fund Khazanah Nasional privatised the airline in 2014 following the two disasters that year; it also brought in German airline turnaround specialist Christoph Mueller in 2015. Malaysia Airlines’ fleet is currently made up of 56 Boeing 737-800s as well as smaller numbers of Airbus planes.
The MH370 and MH17 of 2014 saw the airline teeter on the edge of bankruptcy as flyers feared another repeat. Mueller responded with rescue plan that cut 6,000 jobs and significantly reduced the number of routes.
July's issue of Business Review Australia & Asia is now live.
Follow @BizRevAsia and @MrNLon on Twitter.
Business Review Asia is also on Facebook.
SOURCE: [Borneo Post]
