This article first appeared in The Edge Financial Daily on June 4, 2018

KUALA LUMPUR: Malaysia Airlines Bhd said the memorandum of understanding (MoU) with US plane-maker Boeing Co to potentially add eight widebody Boeing 787-9 Dreamliners to its fleet from the third quarter of 2019 (3Q19) remains intact.

“The MoU is still in place. As an airline, we constantly engage with our partners to review scenarios and options with respect to our network and fleet as a matter of course. Malaysia Airlines will update once something material develops,” the national carrier told The Edge Financial Daily via email.

On Sept 12 last year, Malaysia Airlines and Boeing entered into an MoU to acquire eight 787-9 Dreamliners and eight B737 MAX jets. The eight Boeing 787-9 Dreamliners are valued at US$2.5 billion at list price, which Malaysia Airlines had announced that it planned to use for operating its Asian services.

Malaysia Airlines currently operates six Airbus A380s, 15 A330-300s, 48 B737-800s and six A350-900s.

On whether the airline is still on track to meet its goals set up under the 12-point MAS Recovery Plan (MRP) launched by its parent Khazanah Nasional Bhd on Aug 29, 2014, Malaysia Airlines said it is working hard towards ensuring profitability in 2019.

In a statement to announce the appointment of Captain Izham Ismail as group chief executive officer of Malaysia Airlines on Oct 20 last year, Khazanah said the implementation of the MRP over the 38-month period since its launch — nearly two-thirds of its five-year duration — remains on track.

A search with the Companies Commission of Malaysia showed that Malaysia Airlines has yet to file its financial statement for the financial year ended Dec 31, 2017 (FY17). For FY16, the airline narrowed its net loss to RM438.87 million from RM1.13 billion in FY15, while revenue jumped 2.7 times to RM8.57 billion from RM3.14 billion the previous year.

Asked how much of the RM6 billion investment Khazanah had injected has been spent, Malaysia Airlines said: “Details of the disbursement of funds have been clearly set out in the MRP and all press statements from our shareholder and management [including our various quarterly updates]. Fund disbursement is based on strict conditions set by our shareholder.”

In a recent report on “New broom to sweep Malaysia Airlines clean” by aviation consultancy firm Endau Analytics, its founder Shukor Yusof wrote that the airline is "about to see a radical removal of many of its key officials in the coming weeks, including directors on its board".

To this, Malaysia Airlines said it does not respond to speculation.

“When appropriate, we will update on any changes to the board and management if and when it happens,” it added.

Endau Analytics had also reported that Malaysia Airlines had racked up debts of over RM1.5 billion, citing people familiar with its finances.

“We do not comment on speculation,” said Malaysia Airlines.