MH orders 25 Airbus 330s

Malaysia Airlines and Airbus signed a Memorandum of Understanding covering the order of 15 A330-300s plus purchase options for another 10 aircraft. The airline proposes to offer 1,671 million new shares to raise approximately RM2.67 billion to fund this future fleet growth and improve liquidity and financial flexibility.

The cost of the 25 aircraft is US$5 billion at list prices. The aircraft, which will be delivered from 2011 to 2016 will serve the growing markets of South Asia, China, North Asia, Australia and Middle East.

MH?s managing director and CEO, Tengku Dato? Azmil Zahruddin said: ?The A330s will complement our incoming fleet of six A380s and 35 B737-800s. The new fleet will create a strong platform for us to profitably grow ? the A380 will serve key long haul destinations such as London and Sydney, the A330 for medium haul markets while the B737-800s will be used to strengthen our domestic and regional routes.?

He added: ?Our strategy is to transform from a 100% leased fleet to owning at least a third of the aircraft in our core fleet. We will fund the purchases through a combination of a proposed rights issue and borrowings. This will give us the flexibility to refresh the aircraft on a needs basis to provide our customers with the latest product.?

Sourced = The TTR Weekly