Boeing could land launch order for airliner with supplier deal as flag carrier weighs up options for widebodies

Malaysia is seeking to supply composite components for the Boeing 7E7 as the country's flag carrier Malaysia Airlines (MAS) considers signing up as a 7E7 launch customer to meet a requirement for additional 200-seat widebodies.

Manufacturers expect MAS to acquire either 7E7s or additional Airbus A330-200s to support expansion plans for intra-Asia services.

Boeing is confident that government-owned MAS will order 7E7s by year-end. A supplier deal with government-owned Composite Technology Research Malaysia (CTRM) could help cement a launch order.

CTRM won a contract in 2002 to supply leading-edge lower panels for the Airbus A380 wing. MAS subsequently signed a memorandum of understanding to purchase six A380s.

Malaysia does not require local industry offsets for commercial aircraft orders and CTRM says its attempt to expand its aircraft component manufacturing business is not linked in any way to MAS's evaluation of new aircraft. But industry sources say CTRM contracts can help a sale at MAS given the government's push to build the local aerospace industry.

CTRM chief executive Rosdi Mahmud says CTRM is discussing with 7E7 airframe suppliers BAE Systems and Vought possible contracts to design and manufacture composite components.

"We are looking at some packages, including Excelnet and CTRM. Excelnet will do the design and CTRM the manufacturing," he says.

CTRM is now in the process of increasing its ownership stake in Excelnet from 47.6% to 64%. As a result, Excelnet, an aerospace engineering design firm that previously was run independently as an affiliate company to CTRM, will become a full subsidiary next month. Rosdi says the restructuring will make CTRM a more "comprehensive group" and make it easier for the company to package design and engineering services with manufacturing.

Airbus is also confident it can win the widebody competition at MAS because the carrier already operates 15 A330-200/300s and may require additional 200-seat aircraft before the 7E7 can be delivered. Airbus is also trying to sell MAS A320 family aircraft to meet its requirement for new narrowbodies, which like the widebody evaluation is expected to be concluded within the next year.

BRENDAN SOBIE / KUALA LUMPUR

Source: Flight International