Malaysia Airline, Boeing Announce a Deal for 50 737 Boeing MAX Aircraft
July 27 2016 - 2:40AM
Dow Jones News
By Yantoultra Ngui
PUTRAJAYA, Malaysia--Malaysia Airlines Bhd. has signed a deal
with Boeing to buy upto 50 Boeing 737 MAX jets as part of its plan
to achieve lower costs and greater efficiency, as it looks to
recover from the catastrophic loss of two jetliners in 2014.
The deal, comprises firm orders for 25 jets and the option to
purchase 25 more. The deal is valued at $5.5 billion at current
list prices, though customers typically extract discounts of upto
30% on the published rates.
Deliveries are slated to begin in 2019, according to a press
statement by Malaysia Airlines on Wednesday.
"This deal is a game changer for Malaysia Airlines with much
lower costs and greater efficiency which we will pass on to our
loyal customers with lower fares," the carrier's group managing
director and chief executive, Peter Bellew said.
The announcement comes one month after Malaysia Airlines
promoted Bellew from Chief Operating Officer, to head the carrier.
Bellew was appointed after the airline's group managing director
and CEO, Christoph Mueller announced his decision to step down.
Malaysia Airlines, which is wholly owned by Malaysia's sovereign
wealth fund Khazanah Nasional Bhd, currently operates 56 737-800
planes. The airline will take delivery of a mix of 737 MAX 9 and
737 MAX 8 aircrafts, the statement said.
Write to Yantoultra Ngui at yantoultra.ngui@wsj.com
(END) Dow Jones Newswires
July 27, 2016 02:25 ET (06:25 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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