Langkawi, Aug. 15 (BNA) Malaysia Airlines has signed a provisional agreement to purchase 20 Airbus A330neos to replace its aging fleet of A330 wide-body aircraft in a deal that also includes aircraft leasing company Avolon.
The airline said on Monday that the company will buy ten planes from Airbus, then carry out a sale and leaseback deal with Avolon, while the other 10 planes will be leased directly from Avon.
Industry sources told Reuters last week that a deal was expected on Monday.
Deliveries of the aircraft, which will feature Rolls-Royce (RR.L) engines, are scheduled for delivery from the third quarter of 2024 through 2028, the airline said.
The fleet upgrade, which includes rights to purchase another 20 A330neos, comes amid indications of increased demand for wide-body aircraft after a long stagnation period.
From East Asia to the Gulf, many airlines are revamping their wide-body fleets as international air traffic recovers from pandemic lows.
“The A330neo will not only provide our fleet modernization and enhanced operational efficiency, but will also meet environmental goals by reducing fuel burn per seat while keeping passengers safety and comfort at its core,” Malaysia Airlines CEO Isam Ismail said in a statement.
The airline said it was also working with Airbus on broader cooperation in Malaysia in areas including sustainable aviation fuels, training, maintenance and airspace management.
Malaysia Airlines, which cut its debt burden by more than half as part of a restructuring agreed with creditors last year, said it aims to return to profits in 2023 as demand improves.
The A330neos, all of which are larger A330-900s, will have 300 seats and operate on the existing airline network across Asia, Australia, New Zealand and the Middle East.
FKN