Malaysia Airlines inks MoU with Boeing for 16 airplanes

Khazanah Nasional Bhd. has hired Morgan Stanley to explore strategic options for Malaysia Airlines Bhd.

KUALA LUMPUR: Malaysia Airlines Bhd (Malaysia Airlines) and Boeing have signed an MoU for 16 airplanes comprising eight 787 Dreamliners and eight 737 MAXs.

Boeing said the MoU, which was signed in Washington on Tuesday, includes eight 787-9 Dreamliners by converting eight of Malaysia Airlines' existing order of the Boeing 737 MAX aircraft and eight additional purchase rights of the 737 MAX 8s.

It said the MoU includes Boeing's Global Fleet Care service to maintain the national carrier's current and future Boeing airplanes

The ceremony was witnessed by Malaysian Minister of International Trade and Industry Datuk Seri Mustapa Mohamed in the presence of Prime Minister Datuk Seri Najib Tun Abdul Razak

Malaysia Airlines managing director and chief executive officer Peter Bellew said the national carrier was proud to sign this MoU for  the eight aircraft.

"New widebody aircraft are a key to making Malaysia Airlines a premium airline offering a five star product again. 

The extraordinary range of the 787-9 gives an ability to operate to any point in Europe and some US destinations in the future from Kuala Lumpur. 

“The MOU with Boeing on their Global Fleet Care programme will allow the two companies to build a world class MRO (maintenance, repair and operations) for the 737 MAX, 787 and 737NG based on Malaysia's existing facilities in Kuala Lumpur,” he said.

Malaysia Airlines operates more than 50 Next-Generation 737s and has an additional 25 737 MAXs on order, including 10 for the new 737 MAX 10.