 |
| Boeing 737 MAX is a narrow body jetliner series as the successor to the Boeing 737 Next Generation series. |
KUALA LUMPUR: Boeing Co. won an order worth $2.75 billion from Malaysia Airlines Bhd. for 25 737 Max 8 jets as the Southeast Asian nation’s flag carrier expands its fleet for the first time since two fatal air crashes in 2014 prompted the government to take over the company.
The operator also has options for 25 more aircraft, with the combined deal valued at $5.5 billion at current list prices, the airline said in a statement Wednesday. Deliveries from the Chicago-based manufacturer are set to start in 2019. The options are for a mix of 737 Max 8 and 9 models, which, according to Boeing, have a list price of $110 million and $116.6 million each. Discounts are customary for large purchases.
The addition to its fleet may help Malaysia Air, which is in the midst of a 6 billion-ringgit ($1.5 billion) business overhaul, compete against a slew of budget carriers in the region. Passenger confidence in the carrier, now fully owned by sovereign wealth fund Khazanah Nasional Bhd., took a dive two years ago after Flight MH370 vanished on March 8, 2014 and another was shot down over Ukraine four months later.
The operator also has options for 25 more aircraft, with the combined deal valued at $5.5 billion at current list prices, the airline said in a statement Wednesday. Deliveries from the Chicago-based manufacturer are set to start in 2019. The options are for a mix of 737 Max 8 and 9 models, which, according to Boeing, have a list price of $110 million and $116.6 million each. Discounts are customary for large purchases.
The addition to its fleet may help Malaysia Air, which is in the midst of a 6 billion-ringgit ($1.5 billion) business overhaul, compete against a slew of budget carriers in the region. Passenger confidence in the carrier, now fully owned by sovereign wealth fund Khazanah Nasional Bhd., took a dive two years ago after Flight MH370 vanished on March 8, 2014 and another was shot down over Ukraine four months later.
Ensuring Continuity
The New Straits Times reported the potential order earlier this week. The Malaysian carrier currently has 56 737-800s, 15 A330-300s and six A380s in its fleet, according to its website.
The airline this month named Peter Bellew as chief executive officer, its third in two years, adding the appointment will ensure continuity in the execution of the turnaround plan. The Asian carrier is ahead of schedule with its restructuring, having reached break even recently, putting it on course for a full-year profit in 2018 as targeted, if not earlier, former CEO Christoph Mueller said in a June interview.
The plane purchases may help cut operating expenditure by about 15 percent, Bellew told reporters on Wednesday. The carrier’s turnaround plan is on track, and a re-listing of the stock is planned for March 19, 2019, he said.
This month, Boeing raised its long-term forecast for aircraft orders, saying the rise of discount carriers and growth in developing countries will fuel purchases despite recent economic turmoil from Brexit and a commodities slump. Airlines worldwide will order new planes valued at $5.9 trillion over the next two decades, it said July 11, up 4.1 percent from a year earlier. That would represent a total of 39,620 jetliners across the industry.
The New Straits Times reported the potential order earlier this week. The Malaysian carrier currently has 56 737-800s, 15 A330-300s and six A380s in its fleet, according to its website.
The airline this month named Peter Bellew as chief executive officer, its third in two years, adding the appointment will ensure continuity in the execution of the turnaround plan. The Asian carrier is ahead of schedule with its restructuring, having reached break even recently, putting it on course for a full-year profit in 2018 as targeted, if not earlier, former CEO Christoph Mueller said in a June interview.
The plane purchases may help cut operating expenditure by about 15 percent, Bellew told reporters on Wednesday. The carrier’s turnaround plan is on track, and a re-listing of the stock is planned for March 19, 2019, he said.
This month, Boeing raised its long-term forecast for aircraft orders, saying the rise of discount carriers and growth in developing countries will fuel purchases despite recent economic turmoil from Brexit and a commodities slump. Airlines worldwide will order new planes valued at $5.9 trillion over the next two decades, it said July 11, up 4.1 percent from a year earlier. That would represent a total of 39,620 jetliners across the industry.
Source: Bloomberg | 27 July 2016
No comments:
Post a Comment