MAG says Boeing fleet delay will affect local industry severely

KUALA LUMPUR, March 21 — The Malaysian Aviation Group (MAG) is bracing for eventualities in case makers Boeing delays their order of 10 Boeing 737-8 max aircraft this year.

It said they were experiencing shortages in fleets while the aviation industry was picking up, and new destinations to India were added therefore the group said it needed to work closely with the aircraft company to prepare for any eventualities.

“We're working with Boeing to make sure we're not impacted in any way but having said that we're experiencing delays with Boeing. There are issues to be rectified and Boeing is aware of our position,” said MAG Group Chief Strategy and Transformation Officer Bryan Foong.

“We're expecting 10 aircraft and that's the latest position Boeing indicated to us this year. We are not 100 per cent sure they will deliver the 10 but we hope they do as we as a network have been impacted by a lack of aircraft. So we are working with them to find ways to deliver the planes on time,” he added.

Boeing has said it will have to do more work on about 50 undelivered 737 MAX airplanes, potentially delaying near-term deliveries, after its supplier Spirit AeroSystems discovered two mis-drilled holes on some fuselages.

Boeing confirmed the findings in response to a Reuters query after industry sources said a spacing problem had been discovered in holes drilled on a window frame, but the jetmaker said safety was unaffected and existing 737s could keep flying.

Then on March 15, 2024, it was reported on CBS News that Boeing told lawmakers its planned fix for an engine issue on all 737 Max jets will take up to a year, delaying certification of the 737 Max 7 and Max 10 airliners.

MAG group managing director Datuk Captain Izham Ismail said if delays happen they will extend the leases for the current fleet.

“But it's an older product, our current fleet. It's not competitive in the marketplace and less economical. If you go back to the extended leases you might not get a competitive rate that we got in 2020 during the restructuring, it'll be a high skyrocketed rate and might not benefit the group," he said today during MAG annual report launch.

Before the hiccup, Malaysia Airlines was planning to operate five international and four domestic routes with the 737-8 from October, including services to Bali, Jakarta and Kathmandu in Indonesia, as well as Manila and Phuket in Thailand. Planned domestic destinations are Kota Kinabalu, Kuching, Miri and Penang.