Boeing, Malaysia Airlines Sign Memorandum of Understanding for 16 Airplanes
Boeing [NYSE: BA] and Malaysia Airlines Berhad (Malaysia Airlines) today signed a Memorandum of Understanding for 16 airplanes during a ceremony at the St. Regis Hotel in Washington D.C.
The signing was witnessed by Dato' Sri Mustapa bin Mohamed, Malaysian Minister of International Trade and Industry and in the presence of The Honorable Dato' Sri Muhammad Najib Bin Tun Abdul Razak, Prime Minister of Malaysia as well as members from the airline and Boeing.
The announcement 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 as well as Boeing's Global Fleet Care service to maintain the national carrier's current and future Boeing airplanes. Once finalized, the deal will be posted to Boeing's Orders and Deliveries website.
"Malaysia Airlines is proud to sign this MOU for the widebody Boeing 787-9 Dreamliners and additional 737 MAXs, building on our more than 40 years of partnership with Boeing," said Peter Bellew, managing director and chief executive officer of Malaysia Airlines. "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 USA destinations in the future from Kuala Lumpur. The MOU with Boeing on their Global Fleet Care program will allow the two companies to build a world class MRO for the 737 MAX, 787 and 737NG based on Malaysia's existing facilities in Kuala Lumpur."
Malaysia Airlines currently operates more than 50 Next-Generation 737s and has an additional 25 737 MAXs on order, including 10 for the new 737 MAX 10.
"Boeing offers the very best widebody and single aisle airplanes in the world and we are delighted Malaysia Airlines continues to put its trust and confidence in Boeing with this MOU for 16 Boeing airplanes," said Kevin McAllister, President and Chief Executive Officer, Boeing Commercial Airplanes. "The 787 and the 737 MAX will provide Malaysia Airlines with unmatched fuel efficiency, economics and a superior passenger experience as they continue to grow their business across Southeast Asia and beyond."
The 787 is a family of technologically advanced, super-efficient airplanes with new passenger-pleasing features and uses 25 percent less fuel and with 20 to 25 percent fewer emissions than the airplanes it replaces. The 737 MAX 10 will be the most profitable single-aisle airplane, offering the lowest seat costs ever. The 737 MAX family has been designed to offer customers exceptional performance, flexibility and efficiency, with lower per-seat costs and an extended range that will open up new destinations in the single-aisle market.
Boeing Global Fleet Care provides point solutions in the form of Engineering, Materials and Maintenance programs for air operators, accomplished through the use of decades of fleet data management, industry-leading technologies, and proprietary analytics and processes. Tailored to the individual airline, Boeing Global Fleet Care is a high-value, low-risk and efficient fleet maintenance operations solution that gives customers a competitive advantage in the marketplace.