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Malaysia Aviation Group Explores Jet Acquisition Amid Changing Boeing Deliveries
SEOUL (Reuters) – Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, is engaging in discussions with Boeing regarding the potential procurement of new aircraft that may become available due to shifting delivery schedules to Chinese airlines, according to comments by the managing director to Malaysian state news outlet Bernama.
Recent reports indicate that Boeing is beginning to retrieve some of its 737 MAX jets that were initially sent to China, where they were slated for delivery to local carriers.
To date, neither Boeing nor Chinese authorities have issued any statements explaining the rationale behind the repatriation of these jets, leaving the decision’s origin unclear.
In light of these developments, Malaysia Airlines has yet to respond to requests for further information from Reuters.
Amid ongoing trade tensions between the United States and China, MAG has identified a potential opportunity if Boeing delivery slots become accessible. This scenario presents a chance for the airline to secure earlier deliveries than previously anticipated, as reported by Bernama and noted by Izham Ismail, managing director of MAG.
“MAG is in conversation with Boeing about the possibility of taking over those slots,” Ismail shared with Bernama.
As global airlines seek to enhance their fleets, they are grappling with prolonged delivery timelines caused by post-pandemic disruptions in the supply chain and a reduction in Boeing’s production capacity stemming from increased regulatory scrutiny and a labor strike.
MAG, which is controlled by Malaysia’s sovereign wealth fund Khazanah Nasional, has been actively modernizing and expanding its fleet. The strategic goal is to operate a fleet comprising 55 next-generation 737 MAX aircraft by 2030.
Last month, MAG announced plans to acquire 18 737 MAX 8 and 12 737 MAX 10 aircraft, along with an option to purchase an additional 30 jets.
Furthermore, the company has entered into a leasing agreement with Air Lease Corp to lease 25 737 MAX jets between 2023 and 2026.
Ismail clarified that any prospective arrangement to assume additional aircraft from the newly available delivery slots would not overlap with the current deal with Air Lease Corp and that MAG would likely need to access capital markets for any extra funding required.
Source
finance.yahoo.com