KUALA LUMPUR: Malaysia Aviation Group (MAG), parent of national carrier Malaysia Airlines, said on Tuesday it will take in delivery of Boeing 737 MAX jets from 2024, though the airline group plans to retire its Airbus A380 fleet in the coming months.
The company has agreed with Boeing to take in delivery of its orders from 2024, over a course of three to four years, Group Chief Executive Captain Izham Ismail said in a virtual press briefing.
"We're committed to take the MAX's delivery in 2024, but we are also exploring the possibility of taking it earlier," Izham said, adding that he hopes issues regarding the 737 MAX would be resolved by then and consumer confidence gets restored soon.
MAG was originally scheduled to take in the delivery last July, but the 737 MAX was grounded worldwide after two crashes and several airlines and lessors cancelled orders of the jet.
MAG is also exploring ways to dispose of its Airbus SE A380 fleet, although it has yet to present a proposal to its board.
"We are cognizant of the challenges to sell this aeroplane, but we are still looking at ways and means to dispose of our 380 fleet. At the moment, the management is convinced that the 380 doesn't fit the future plan," he said.
The airline group is restrategising its business to position itself as a global travel group and expand beyond the airlines business.
Under the debt restructuring process, MAG said it secured savings in liabilities worth 15 billion ringgit ($3.65 billion), and conserved 4.2 billion ringgit through network cuts and cost saving.
The group forecasts capacity at about 63% of pre-crisis level by the end of this year, Izham said, adding that it expects to break-even and become cash flow-positive in 2023.
Under the current long-term business plan, which MAG had started executing in 2019 before the COVID-19 pandemic hit, the group aimed to become a "one-stop centre for all travel needs", he said.
The group will also invest the bulk of a capital injection of 3.6 billion ringgit from its largest shareholder Khazanah Nasional into the airline's growth, including its digital business, maintenance, repair, overhaul and aircraft deliveries, Izham said.
Malaysian sovereign wealth fund Khazanah announced in February that it committed the new capital to the airline group to fund the business through until 2025, after the airline had a court approval for its restructuring scheme.
Reuters
Tue May 04 2021
The airline group is restrategising its business to position itself as a global travel group and expand beyond the airlines business. Filepic/REUTERS
COP29 climate summit draft proposes rich countries pay $250 billion per year
The draft finance deal criticised by both developed and developing nations.
Bomb squad sent to London's Gatwick Airport after terminal evacuation
This was following the discovery of a suspected prohibited item in luggage.
Kelantan urges caution amidst northeast monsoon rains
Kelantan has reminded the public in the state to refrain from outdoor activities with the arrival of the Northeast Monsoon season.
Former New Zealand PM Jacinda Ardern receives UN leadership award
Former New Zealand prime minister Jacinda Ardern was given a global leadership award by the United Nations Foundation.
ICC'S arrest warrants for Netanyahu, Gallant an apt decision - PM
The decision of the ICC to issue arrest warrants against Benjamin Netanyahu and Yoav Gallant is apt, said Datuk Seri Anwar Ibrahim.
KTMB provides two additional ETS trains for Christmas, school holidays
KTMB will provide two additional ETS trains for the KL Sentral-Padang Besar route and return trips in conjunction with the holidays.
BNM'S international reserves rise to USD118 bil as at Nov 15, 2024
Malaysia's international reserves rose to US$118.0 billion as at Nov 15, 2024, up from US$117.6 billion on Oct 30, 2024.
Findings by dark energy researchers back Einstein's conception of gravity
The findings announced are part of a years-long study of the history of the cosmos focusing upon dark energy.
NRES responds to Rimbawatch press release on COP29
The Ministry of Natural Resources and Environmental Sustainability (NRES) wishes to offer the following clarifications to the issues raised.
Online Safety Bill and Anti-Cyberbullying Laws must carefully balance rights and protections
The Online Safety Advocacy Group (OSAG) stands united with people in Malaysia in the fight against serious online harms.
Malaysia's inflation at 1.9 pct in Oct 2024 - DOSM
Malaysia's inflation rate for October 2024 has increased to 1.9 per cent, up from 1.8 per cent in September this year.
Saudi Arabia showcases Vision 2030 goals at Airshow China 2024
For the first time, Saudi Arabia is participating in the China International Aviation & Aerospace Exhibition held recently in Zhuhai.
King Charles' coronation cost GBP 71mil, govt accounts show
The coronation of Britain's King Charles cost taxpayers GBP72 million (US$90 million), official accounts have revealed.
Couple and associate charged with trafficking 51.9 kg of meth
A married couple and a man were charged in the Magistrate's Court here today with trafficking 51.974 kilogrammes of Methamphetamine.
PDRM to consult AGC in completing Teoh Beng Hock investigation
The police may seek new testimony from existing witnesses for additional insights into the investigation of Teoh Beng Hock's death.
Thai court rejects petition over ex-PM Thaksin's political influence
Thailand's Constitutional Court rejects a petition seeking to stop Thaksin Shinawatra from interfering in the running the Pheu Thai party.
Abidin takes oath of office as Sungai Bakap assemblyman
The State Assemblyman for Sungai Bakap, Abidin Ismail, was sworn in today at the State Assembly building, Lebuh Light.
UPNM cadet officer charged with injuring junior, stomping on him with spike boots
A cadet officer at UPNM pleaded not guilty to a charge of injuring his junior by stomping on the victim's stomach with spike boots.
How Indian billionaire Gautam Adani's alleged bribery scheme took off and unraveled
The indictment was unsealed on Nov. 20, prompting a $27 billion plunge in Adani Group companies' market value.
Elon Musk blasts Australia's planned ban on social media for children
Several countries have already vowed to curb social media use by children through legislation, but Australia's policy could become one of the most stringent.