This article first appeared in The Edge Financial Daily on June 22, 2017
KUALA LUMPUR: Malaysia Airlines Bhd has converted some of its current 737 MAX 8 orders into 10 new 737 MAX 10 models, valued at US$1.25 billion (RM5.36 billion) at list prices, at the Paris Air Show in Le Bourget, France.
Last year, the national carrier announced an order for 25 737 MAXs.
In a statement yesterday, Malaysia Airlines managing director and chief executive officer Peter Bellew said the airline has decided to convert some of its 737 MAX 8s to 737 MAX 10s, which offer greater flight efficiency and additional capacity.
“As competition and our business continue to grow, the superior efficiency and additional capacity of the 737 MAX 10 will allow us to keep differentiating ourselves and offer the best all-inclusive business and economy fares to our loyal passengers,” he said.
Malaysia Airlines has been on the lookout to purchase 25 to 30 new wide-body jets, but has so far been unable to agree on a price for the planes.
That comes as the airline reportedly remains short of capacity to meet its short-term needs and to meet expansion such as the availability of a second slot in Shanghai, China. “We just need lift,” Bellew said in a Reuters report.
According to US plane maker Boeing, Malaysia Airlines has operated almost every derivative of the 737 airplane family and currently operates more than 50 Next-Generation 737s.
“Boeing has been a proud partner of Malaysia Airlines for more than 40 years and we are honoured they are joining the 737 MAX 10 launch group,” said Boeing Commercial Airplanes senior vice-president of global sales and marketing Ihssane Mounir.
“The 737 MAX 10 will be the most profitable single-aisle airplane offering the lowest seat costs ever, and will be a great complement to Malaysia Airlines’ all single-aisle fleet of 737s as they continue to add capacity to their routes,” he said.
Boeing also said the 737 MAX is the fastest-selling airplane in its history.
“The entire 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,” it noted.
Like Boeing’s other 737 MAX models, the MAX 10 incorporates the latest technology of CFM International LEAP-1B engines, Advanced Technology winglets, Boeing Sky Interior, large flight deck displays, and other improvements to deliver the highest efficiency, reliability and passenger comfort in the single-aisle market.