Malaysia Airlines has been trying to re-expand quite aggressively. Since the airline began to downsize after a series of disasters and poor economic performance, they have seen benefits to their economic strategy. The airline has recently doubled-down on their commitment to the oneWorld Alliance. They want to have a larger part in the group, and expand their cooperation with OW airlines.

As the airline continues to grow its ambitions, it will need to grow its fleet. In order to achieve this, Malaysia Airlines will take deliveries of 6 A350s. These aircraft will replace the A380 on flights to London. The aircraft’s smaller size, as well as improved fuel performance, will allow the airline to more easily turn a profit on the flight. The airline may redeploy the A380s on other routes. Besides the A350, Malaysia Airlines 787 order was signed in the US a few days ago.

Malaysia Airlines A380

Malaysia Airlines A380

Malaysia Airlines Boeing Order

The airline ordered a total of 8 787-9s, as well as 8 737MAX jets. The airline converted some 737MAX orders into the 787 order, and also added 8 737s to compensate for the conversion. This purchase comes on the heels as the Malaysian Prime Minister tries to improve his standing in his country, as well as throughout the world. The new aircraft would allow Malaysia Airlines to reach more destinations, as well expand their network beyond the regional scope they currently have. Before this, Malaysia had an outstanding order for 25 737MAXs. The airline is also in talks to expand this deal, adding 25 more MAX jets. This would allow the airline to replace their fleet of 737-800s.

Malaysia Airlines 737-800

Malaysia Airlines 737-800

The deal comes as a major blow to Airbus, which has been hit hard by cancellations, and slow orders. The airline had considered the A330neo, but instead chose the 787. I personally believe there were political considerations when making the purchase, as well as a very steep discount. Boeing has outpaces Airbus by over 150 orders this year.

 

Malaysia Airlines’ Future

After the purchase of 787s, I expect to see Malaysia Airlines embark in an ambitious expansion project. The 6 A350s could fly to major commercial centers in Europe, such as Paris and Frankfurt, aside from London. The 787s could allow Malaysia Airlines to fly to the US West Coast. This would be the first time an airline from South East Asia flies direct to the US (besides Singapore Airlines). In the past, Malaysia Airlines and Thai Airways flew to the US.

Old Malaysia Airlines 777 in Old Livery

Old Malaysia Airlines 777 in Old Livery

I also see a small possibility that the A380s remain in service after the A350s are delivered. The aircraft would not fly ultra long haul routes, but would probably fly regional long haul routes. As the Asian aviation market grows, so will capacity. The A380 may be a reasonable aircraft to fly to places like Tokyo, Sydney or Beijing. Regardless, Malaysia Airlines will expand and become a global name once again.

Malaysia Airlines oneWorld A330

Malaysia Airlines oneWorld A330

 

Landing Thoughts:

I am very happy to see Malaysia Airlines rise from the the brink. The airline saw itself in a very difficult situation and was able to prove that they could bounce back. Their new expansion projects will allow the airline to compete more effectively with their regional competitors, such as Thai Airways and Singapore Airlines. In the coming years, I would not be surprised if the airline began flying to more European destinations. Like I mentioned, the 787 may allow them to fly to the US, as well as add more European destinations. With the airline administration bent on improving customer experience, I can only imagine Malaysia Airlines will become a major player soon.

 

What do you think? Did Malaysia Airlines do a smart business decision by ordering the 787s? Where will they be deployed? Let us know!

 

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H/T: Fortune

 

Images from: Wikimedia Commons