Malaysia Airlines’ (MAS) long-standing plans to replace its 39 Boeing 737-400s have been dealt another setback, with a further deferral until at least next year, writes Nicholas Ionides.
Industry sources say MAS has indicated there are now no plans to place orders for Airbus A320s or new 737-700/800s until at least next year, and probably no earlier than late in the first quarter. The airline has considered placing orders for new narrowbodies for years, but has repeatedly deferred decisions.
The sources say MAS’s latest deferral is being characterised as a “suspension” of the order plan. They believe it is in part due to the fact that a new managing director, former Shell executive Idris Jala, has taken office and will want a say in the order decision. This is being taken in partnership with parent company Penerbangan Malaysia.
They add that the Malaysian government is also continuing to review the flag carrier’s domestic operations, with a possible view towards having MAS co-operate with privately owned low-cost airline AirAsia. This could have an impact on the number of new aircraft that are needed.
MAS issued requests for proposals to Airbus and Boeing earlier this year and said it planned to order around 40 aircraft by the middle of 2005 to replace its 39 737-400s, which are used on domestic routes and some short-haul international services. At the time it also issued tenders to ATR, Bombardier and Embraer seeking proposals on up to 10 regional jets or turboprops to replace its 10 Fokker 50s, which operate within east Malaysia. MAS later pushed back its order timeline on several occasions. The last delay coincided with the August resignation of managing director Ahmad Fuaad Dahlan alongside the release of poor financial results.
Source: Flight International
