KUALA LUMPUR: Malaysia Aviation Group (MAG) is setting its eyes on a combination of Boeing 737 MAX family aircraft - most likely the MAX 8 and MAX 10 - for its second batch of new narrowbody aircraft order.
Business Times learnt that the group is considering to offer luxurious cabin configuration with lie-flat Business Class seats on its new single-aisle fleet.
"It's not a done deal yet but it may lead towards that (Boeing). What's being considered is the lie-flat Business Class for the new narrowbody fleet," sources told Business Times.
A few airlines that offer lie-flat Business Class seats on their B737 MAX airplanes include Singapore Airlines, flydubai and America's United Airlines.
The sources added that the group is waiting for the green light from its shareholder on its planned purchase of the second batch of new narrowbody aircraft.
The sole shareholder of MAG is Malaysia's sovereign wealth fund Khazanah Nasional Bhd.
When asked about the potential delays of the new aircraft delivery should MAG secure a deal with Boeing, the sources said the earliest delivery of airplanes is from 2031.
"In any case, the earliest delivery for any new (aircraft) order now is 2031 onwards for both Boeing and Airbus," the sources said.
Boeing had a challenging 2024 starting with the door plug blowout mid-air of its B737 MAX 9 operated by Alaska Airlines to the seven-week strike by its factory workers that halted the 737 MAX production and the downsize of its workforce by 10 per cent which affected some 3500 employees in the company's first round of job cuts.
However, Boeing had also welcomed a new chief executive officer Kelly Ortberg in August last year who promised to turn around the more than 100-year-old American airplane manufacturing company.
On MAG's new widebody aircraft, the sources said the group still has an option for another 20 Airbus A330neo (new engine option).
In August 2024, Business Times asked Airbus executive vice president (international) Wouter van Wersch on MAG's decision on its A330neo option. He said that he could not comment on the commercial discussions with customer.
"I can't comment on any of these commercial discussions. That's the prerogative of the customer," he said.
Business Times has reached out to MAG to comment on its second batch of new aircraft orders.
An MAG spokesperson said the group will make an announcement on its widebody and narrowbody campaign in due course.
In August 2024, MAG group managing director Datuk Captain Izham Ismail said the group may be eyeing either Boeing narrowbody aircraft or its competitor, Airbus' A321 or A320.
"We'll see what's best on the table," he told Business Times in an interview last year.
Izham also said the group may order more than 25 single-aisle airplanes for its second batch of new narrowbody aircraft order although the group aims to have a minimum fleet of 50 single-aisle airplanes by 2035.
MAG was supposed to make an announcement on its second batch of new aircraft orders by end-2024.
The announcement was delayed several times last year as Izham said the group was re-evaluating the plans for its initial fleet renewal programme.
The group had executed its first batch of new aircraft order as part of its fleet renewal programme for its airline unit Malaysia Airlines Bhd, with 25 B737 MAX 8 in 2017 and 20 widebody A330neo in 2022.
Malaysia Airlines currently has five B737 MAX 8 in its fleet while the remaining 20 aircraft is expected to be delivered between 2025 and 2026.
The national carrier had also recently received its first A330neo in December last year and is currently operating flights to Melbourne, Australia from Kuala Lumpur.
Izham said in August that it was crucial for Malaysia Airlines to operate a new fleet so that MAG could manage a better cost structure and offer improved products and services to its passengers.