Malaysia Airlines
- IATA/ICAO Code
- MH/MAS
- Airline Type
- Full Service Carrier
- Hub(s)
- Kuala Lumpur International Airport
- Year Founded
- 1972
- Alliance
- oneworld
- CEO
- Izham Ismail
- Country
- Malaysia
Malaysia Airlines has six A380s it is struggling to find a buyer for and now is openly talking about replacing its fleet of older technology A330 widebody aircraft.
Malaysia Airlines chief executive Izham Ismail spoke with Reuters on the sidelines of this week’s International Air Transport Association (IATA) annual meeting in Qatar. Speaking about replacing the aging Airbus A330s, he told Reuters yesterday the airline plans to announce a decision on replacing its fleet of 21 Airbus A330 widebodies with more fuel-efficient new-generation planes by around mid-to-late July.
“We are in a late stage of the process. We are looking at one-to-one replacement on our A330 fleet.”
The 21 A330s at Malaysia Airlines are all 10+ plus years old
Malaysia Airlines has six Airbus A350s in its fleet and may look to add more to replace its older A330s. Photo: Airbus
Malaysia Airlines has a fleet of 96 aircraft, with ch-aviation.com data showing 68 aircraft are currently in active operation. The total fleet includes six Airbus A330-200s, 15 A330-300s and three A330-200F freighters. The average age of the A330s ranges from ten to nearly 15 years, and there is only one in storage, an A330-300 registration 9M-MTE. The balance of Malaysia Airlines’ fleet comprises six Airbus A350-900s, six A380-800s, 44 Boeing B737-800s, six De Havilland DHC-6-400s and ten ATR 72-500s. It also has 25 Boeing B737 MAX 8 on order.
Apart from the operational efficiencies and customer experience benefits new generation aircraft will bring, Malayasia Airlines has sustainability goals to meet. On June 5, World Environment Day, the airline operated its first passenger flight using sustainable aviation fuel to power a Boeing B737 from Kuala Lumpur to Singapore. A blend of conventional jet fuel and Neste’s sustainable aviation fuel (SAF), made from animal fat waste, was used on the flight. Malayasia Airlines’ parent, the Malaysian Aviation Group (MAG), is committed to reaching net-zero carbon emissions by 2050 and sits on the industry task force driving the promotion and adoption of SAF in Malaysia.
Malaysia Airlines is in a solid cash position to order new aircraft
Malaysia Airlines’ Izham did not specify which aircraft types were under consideration or if the airline would buy them directly from the OEM or aircraft lessors. The obvious replacements for the A330s are the Airbus A330neo, the A350 or the Boeing B787, and Malaysia previously ordered 787s in 2017, with the order lapsing later. Replacing the A330 and A380 fleets with new-generation aircraft will boost the airline’s net-zero by 2050 commitment.
Firefly is part of the Malaysian Aviation Group, along with Malaysia Airlines and MASwings. Photo: Getty Images
The airline is in a much stronger financial position after a significant restructuring by MAG in 2021. The restructuring reduced the group’s liabilities by more than RM15 billion ($3.4 billion) and eliminated RM10 billion ($2.27 billion) of debt. MAG, owned by the Malaysian sovereign wealth fund Khazanah Nasional Bhd, operates Malaysia Airlines, MASwings and Firefly. For the year ended December 31, 2021, MAG reported an EBITDA of RM433 million ($98.3 million) compared to a loss of RM1.76 billion ($400 million) in 2020. The airline group said it will gradually add capacity to more than 70% of pre-pandemic levels, and strong passenger demand and sales are contributing to the group’s solid cash balance.
It is that solid cash balance, reduced debt and financial restructuring that puts Malaysia Airlines in a sound position to renew its A330 fleet. Both Boeing and Airbus have a shortage of widebody orders and will no doubt be keen to offer attractive propositions to Malaysia Airlines, so now is an opportune time for the airline to make a move. The question is, which aircraft will it choose?
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Source: Reuters