Malaysian Airline Said to Weigh 100-Aircraft Order
The state-run company is looking at a range of
short-haul and long-haul models from both Airbus Group NV (AIR) and Boeing Co.
(BA), said the person, who asked not to be identified because the information is
private. A decision on the purchase may be taken by the end of first half of
this year, the person said.
Malaysian Air seeks to start taking
deliveries of the new planes from late 2016 or early 2017, the person said
yesterday, as it works to upgrade its fleet over the next decade. The carrier
needs new fuel-efficient jets to cut costs amid rising competition from discount
airlines such as AirAsia (AIRA) Bhd., which have ordered hundreds of planes to
tap Asia's rising travel.
"Malaysian Air is playing catch-up with other
airlines," Mohshin Aziz, an analyst at Kuala Lumpur-based Maybank Investment
Bank Bhd., said in a telephone interview. "It's the right thing to do given the
competition in the industry."
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