File photo for representational purposes only.
Kuala Lumpur: Malaysia Airlines' parent company announced Friday it will buy 30 Boeing 737 MAX planes as it seeks to modernise its fleet after a series of setbacks.
The deal will see Malaysia Aviation Group (MAG) buy 18 Boeing 737-8 jets and a dozen 737-10s for an undisclosed sum. With deliveries to start in 2029, the deal also includes the option to purchase 30 additional planes.
Boeing said the aircraft had already been added to its order book in January, having been allocated to an unidentified customer before Friday's announcement.
The choice of Boeing jets "reflects a careful evaluation of our long-term growth strategy, ensuring we have the right aircraft to meet evolving market demands," said Izham Ismail, MAG managing director.
The new aircraft "offer greater fuel efficiency, extended range, and enhanced passenger comfort", he added.
The group, which also operates carriers Firefly and MASwings, said it will gradually phase out its older Boeing 737-800 aircraft operated by Malaysia Airlines.
The national carrier, Malaysia Airlines was hit last year with manpower issues and reduced routes. The signing was attended by Prime Minister Anwar Ibrahim, who delivered a keynote address.
"I trust that Boeing and GE Aerospace will recognise this partnership as a valuable opportunity to strengthen their presence in Malaysia, contributing to our nation's growth and technological advancement", he said.
The Boeing deal was described as sensitive and political by Shukor Yusof, founder of aviation consultancy Endau Analytics.
"I think this order for 30 aircraft and potentially another 30 would go some way to placate the Americans, and also to make sure that President (Donald) Trump doesn't get on Malaysia's case," Shukor told AFP.
The analyst suggested the jet deal could be an effort to narrow Malaysia's trade deficit with the United States, after Trump threatened to impose tariffs on countries that run the biggest surpluses.
At around 10:30 am in New York (1430 GMT), Boeing shares were up 0.84 percent.
