Malaysia Airlines Bhd. said delayed aircraft deliveries plaguing the industry are threatening the carrier’s expansion plans.
"We are seeing aircraft deliveries being delayed,” Captain Nasaruddin A. Bakar, chief executive officer of the carrier’s parent, Malaysia Aviation Group, said in an interview in Kuala Lumpur on Thursday. "Not by years, but by months.”
For Malaysia’s national carrier, the delays present a risk that it won’t be able to capture what the CEO described as a "very strong” outlook for demand, despite high oil prices driving up airfares. Carriers from Emirates to Lufthansa and Singapore Airlines Ltd. have been waiting for years for some aircraft as makers of planes and engines struggle to ramp up production.
Malaysia Air has been planning to increase its passenger-carrying capacity by 8% next year and add as many as three destinations. Any delayed deliveries could force the company to find more spare parts than usual or cut capacity, he said.
Separately, Malaysia Air is closing in on a multibillion-dollar order for Boeing Co. 787 Dreamliners, people familiar with the matter have said. Asked about an update on the deal, Bakar said the company plans to finalize an order for 20 widebody planes by as early as this month. - Bloomberg
