AFTER SACKING 6,000 STAFF, NAJIB LOADS DEBT ON MAS AGAIN TO WRIGGLE OUT OF 1MDB MESS – DEAL TO BUY 16 BOEING PLANES INKED IN WASHINGTON

Malaysia Airlines planes sit on the tarmac at Kuala Lumpur International Airport July 21, 2014. REUTERS/Edgar Su

KUALA LUMPUR – Malaysia Airlines Berhad made an agreement with Boeing to purchase eight Boeing 787-9 widebody and eight Boeing 737 airplanes.

The signing of the memorandum of understanding (MoU), Boeing said, was witnessed by Minister of Trade Datuk Seri Mustapa Mohamed in the presence of Prime Minister Datuk Seri Najib Razak in Washington, US, yesterday. The value of the deal was, however, not mentioned.

A previous news report by international newswire Reuters had said that the deal with the American aircraft manufacturer was to be worth more than US$1.8 billion (RM7.5 billion) at list prices.

Malaysia Airlines managing director and chief executive Peter Bellew said the new widebody aircrafts will help propel the service of the national carrier further into a premier airline.

“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,” he said in the Boeing statement, referring MRO to maintenance, repair and operations.

The statement said 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 Commercial Airplanes president and chief executive Kevin McAllister said the 787 and the 737 MAX will provide Malaysia Airlines with unmatched fuel efficiency, economics and a superior passenger experience.

According to the statement, the 787 is a family of technologically advanced, super-efficient airplanes with new passenger-pleasing features and uses 25 per cent less fuel and with 20 to 25 per cent fewer emissions than the airplanes it replaces while the 737 MAX 10 is regarded to be the most profitable single-aisle airplane, which offers the lowest seat costs ever.

During Najib’s trip to the White House, he said Malaysia Airlines’ deal with Boeing would be worth beyond US$10 billion in five years.

-Malay Mail