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jahur

MAB Signed MOU for 8 787-9 and 8 737 Max 8 During Najib-Trump Visit

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The issue will get the same public (forum) reaction regardless of it were spearheaded by other people than the PM.

 

The issue to me is that PB, the CEO, who have been executing the approved business plan, seems to be caught unaware of this purchase and blabbering about considering US destinations, to conduct market study LATER ON, which is not the normal convention or simple logic in conducting business plan. When I read the first The Star article that Flee posted earlier, what I transcribed from PB's response is "We don't know where to fly these planes."

 

Yes, especially when in the past year, PB has been telling all and sundry that MAB will focus on North Asia and China. He also said that there are no plans to return to Europe and that LHR is their only commercially viable destination. He also said that Australia has capacity issues. If that is the case, where will the 787s fly to? Looks like a case of "lets get the planes first, then we figure out what to do with them!".

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The issue will get the same public (forum) reaction regardless of it were spearheaded by other people than the PM.

 

The issue to me is that PB, the CEO, who has been executing the approved business plan, seems to be caught unaware of this purchase and blabbering about considering US destinations, to conduct market study LATER ON, which is not the normal convention or simple logic in conducting business plan. When I read the first The Star article that Flee posted earlier, what I transcribed from PB's response is "We don't know where to fly these planes."

The planes can be flown to north asia and nz dont believe you nid to ceo address that everytime he speaks to the press, even garuda and thai ceos wont give a clear picture on actual route deployment until marketing makes a statement. like kk lee said previously mixed fleet is needed for proper yield management. You cannot leave expansion(apart from asia) out the long term planning. Some of the a330 routes need aircraft change as routes closer have become clogged by excess load the secondhand a330 will address that but what about potential yield in using next generation aircrafts there is need to use them when competition have already proven the platform to be good. The question in doing business is very unprecidented if a good deal or loophole comes utilize it to fullest extend do not play waiting game. If the management is inflexible in aircraft deployment and seasonal demand changes, then Mab has serious problem. Edited by jahur

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The issue will get the same public (forum) reaction regardless of it were spearheaded by other people than the PM.

 

The issue to me is that PB, the CEO, who has been executing the approved business plan, seems to be caught unaware of this purchase and blabbering about considering US destinations, to conduct market study LATER ON, which is not the normal convention or simple logic in conducting business plan. When I read the first The Star article that Flee posted earlier, what I transcribed from PB's response is "We don't know where to fly these planes."

 

The question about restarting US flights could have cropped up simply because they were in D.C., or through conversation between the reporters with the PR folks from Boeing who would undoubtedly tout the 787's long range. Unfortunately we're not there to know what prompted such questions. I think one of Bellew's comments strengthens this case “As for the business case for US direct flights, we are just starting on it. The planes were not acquired to do that mission, although it is now possible."

 

However you can't deny the fact that the 787 was in contention and that PB had stated on the record that the current hangup MH has with the A330neo is the price. It's not like the 787 was not considered & all of a sudden they turn up to order it.

 

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http://www.thestar.com.my/news/nation/2017/09/14/najib-no-truth-to-malaysia-currying-favour-with-us-over-boeing-plane-purchase/#d7X21UTrQtifDyOS.99

 

"When we buy Boeing planes we are turning MAS into a competitive airline. When other airlines have dreamliners, we must also have dreamliners."

 

Isn't that a dejavu? Hahahahahaha.

 

When our competitor have the A380, we must also have the A380. :D

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While we are at it, the B789's excellent range should encourage MAB to look at restoring its South Africa/South America services too... ;)

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Ok, Aercap and some China lessor just signed up 39 B789 on first day of Paris Air Show, Malaysia Airlines...please......lease some!!

 

 

Ps: I'm joking.

Bro you got your wish, 3 months later.

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Email info.

 

Boeing 737 Fleet

 

We currently have 54 aircraft in our fleet of 737-800s with 48 actually operating. 6 of these aircraft are being handed back to lessors in December 2017 and are currently going through a lease return maintenance programme. In 2018, we will operate 44 737 aircraft daily, with 3 in maintenance and 1 available spare.

 

The current remaining 48 aircraft in the 737-800 fleet start reaching end of lease from early 2019. In 2016, we made 25 firm orders for the 737-MAX8 aircraft and 25 options. The aircraft were ordered as pure replacements for existing planes and arrive on the same month that the other aircraft are retired. The total value of this Boeing MAX8 order of 50 is USD$5.5 billion. The order also had an option to take delivery of some of the larger Boeing MAX9 aircraft instead of the MAX8.

 

In June 2017, we made a new agreement with Boeing to allow us to choose their new larger MAX10 aircraft for 10 out of the firm order of 25. With this, Malaysia Airlines can decide to take either the MAX8 or MAX10. The MAX10 aircraft are expected to commence delivery in early 2021.

 

In September 2017, we signed a non-binding MOU with Boeing to facilitate our negotiations with Boeing to change 8 of the firm 737 orders to 8 Boeing 787-9 Dreamliner aircraft. In addition to this, we also placed purchase rights for an additional 8 737MAX8, all while maintaining the total firm order at 25.

 

The Boeing MAX aircraft will be financed through pre-existing deposits that Malaysia Airlines paid to Boeing on older aircraft and sale and leaseback deals with a variety of international leasing companies.The aircraft will not be owned by Malaysia Airlines but are planned to be on operating leases which is a norm in modern airlines. The Boeing MAX aircraft will have a lease period of some 12 years.

 

Airbus A380 Fleet

 

Malaysia Airlines has 6 Airbus A380 aircraft which currently operates our twice daily service to London and charter services. The aircraft has 494 seats with First, Business and Economy class cabins. The 6 aircraft will end scheduled service with Malaysia Airlines in June 2018. The A380 is too large for our target markets and are being replaced with new and smaller Airbus A350 aircraft which will be delivered beginning November 2017.

 

The aircraft are currently in the early/planning stage of moving to a new airline which will specialise in operating charter services primarily to/from Saudi Arabia. The project is currently undergoing a rigorous assessment by the MAG management and Khazanah.

 

Airbus A350

 

In 2015, we leased 4 Airbus A350-900s from ALC Leasing in California to replace our A380 aircraft on the London route. This was followed up by the lease of a further 2 A350-900s in early 2016. These aircraft have First, Business, Premium Economy and Economy class cabins. The first delivery of the A350 is expected at the end of November 2017 and the first operation of this aircraft on the London route is scheduled for 15 January 2018. The sixth and final A350 is due to arrive in Malaysia at the end of June 2018.

 

The A350-900 can operate non-stop to any point in Europe, New Zealand and North Asia. Final commercial evaluation on the routes to be operated by the fifth and sixth aircraft is ongoing. The A350 aircraft are financed on a monthly rental lease agreement over a 12 year period.

 

Airbus A330-300 and freighter aircraft

 

Malaysia Airlines currently has 15 passenger and 3 specialised freight-only A330 aircraft. These widebody aircraft operate to North Asia, Australia, New Zealand, India, Hong Kong, Saudi Arabia and China. They are used on the most profitable routes the airline operates and have lie flat beds in business class. The aircraft will start to end their leases between 2020 through to 2025.

 

The business strategy of Malaysia Airlines is to return to being a premium 5 star airline. The company has been on the lookout for suitable additional widebody aircraft for the last 12 months to enhance services to India, China, Hong Kong and North Asia.

 

The search is still ongoing to find approximately 6 second hand A330 aircraft which can complement the existing fleet and upgrade our Asian services quickly. Ideally, we want to be able to obtain high quality A330 used aircraft with lie flat beds and full in-flight entertainment systems to add to the fleet in 2018.

 

The A330 fleet is financed via a variety of finance and operating leases including some export credit debt. Payments vary from quarterly to monthly. If additional good value aircraft can be sourced, they will be financed by operating leases.

 

As the existing Airbus A330-300 passenger fleet approaches the end of their leases, a replacement will be required and the company will continue to evaluate the new Airbus A330neo and Boeing 787-9 Dreamliner to replace this fleet of 15. This is of course, subject to a final decision by the Board.

 

Boeing 787-9 Dreamliner

 

Malaysia Airlines has signed an MOU to potentially add 8 of the widebody Boeing 787-9 Dreamliner aircraft to our fleet from Quarter 3 in 2019. The aircraft is being sought to add capacity to our widebody fleet and provide a high level of quality on our most lucrative routes. The 787-9 has one of the longest ranges of any commercial aircraft and can operate non-stop from Kuala Lumpur to any point in Europe as well as key cities on the West coast of the USA. The same aircraft can similarly operate high quality services to Tokyo or flights of up to 17 hours, offering great flexibility for the airline over the next 20 years.

 

The initial 787-9 Dreamliner deliveries are planned for operating our Asian services. The growth of the Malaysian economy and the increasing globalisation will allow these aircraft to commence new long haul services from 2020 onwards if sufficient profitable demand exists. The Dreamliner gives the company complete flexibility to manage a variety of market opportunities over the next 20 years.

 

The total value for 8 of the Boeing 787-9 Dreamliner aircraft is some USD$2.5 billion at list prices. These aircraft will not be owned by Malaysia Airlines. Plans are in place for the aircraft to be purchased directly from Boeing and then financed by a variety of large global leasing firms and banks on operating sale and leaseback deals. The operating leases will generally be for a period of 12 years.

 

Boeing Global Fleet Care Maintenance

 

Malaysia Airlines and Boeing have signed a memorandum of understanding (MOU) to set up a specialist MRO (Maintenance, Repair and Overhaul) facility in Sepang. The MRO will focus on the 787 Dreamliner, Boeing Max and Boeing NG aircraft. It will leverage on the existing under-utilized hangar facilities in Sepang and require additional highly skilled engineering staff to service local and third party international MRO contracts.

 

As part of the MOU, a 12 year contract to service the new MAX and Dreamliner fleet with a value of USD$1.2 billion is being negotiated. The maintenance will be financed via a cost per hour deal, paid monthly per aircraft as the operating hours of the aircraft are incurred.

 

While certain aspects of this fleet update may seem technical in nature, I hope it offers some clarity on the status of our overall fleet and on plans, moving forward. In all of this, I would like to reiterate that as of now, we have a firm order of 25 Boeing 737 aircraft with everything else being optional.

 

The decision to have the option to purchase and a variety of other arrangements will allow us to have some flexibility in deciding which aircraft suits our operational environment best. Having said this, the management will continue carefully evaluating all options available to us to ensure our purchases make both business and operational sense. This is necessary and in line with ongoing prudent fleet management and cost containment efforts across the group.

 

Thank you.

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Quite clear from the email that MH was arm twisted to do a PR event for the sake of that crook-politician.

 

The email never justified why MH all of sudden did an MoU just to facilitate discussions on possible 787 acquisitions. It looks so out of place. Stressing that the MoU was non-binding and the last paragraphs assuring that contractually, it is still status quo - just confirms the suspicion.

I would imagine the fleet planners and some internal mngt folks at MH must have been flustered when the 789 thingy was forced onto MH for political expediency.

Edited by Mushrif A

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Quite clear from the email that MH was arm twisted to do a PR event for the sake of that crook-politician.

 

The email never justified why MH all of sudden did an MoU just to facilitate discussions on possible 787 acquisitions. It looks so out of place. Stressing that the MoU was non-binding and the last paragraphs assuring that contractually, it is still status quo - just confirms the suspicion.

I would imagine the fleet planners and some internal mngt folks at MH must have been flustered when the 789 thingy was forced onto MH for political expediency.

That's some strong words.. crook politician.. in any business we do, no matter what, there's always some kind of political twist to it. To say that some arms were twisted when PB himself said MAB were evaluating a330neo/787 back in August is out of order. Beli salah, x beli pn salah. a350 is replacing the a380. 787s maybe the widebodies replacing a330. Who knows, maybe someone else is wiser regarding MAB's fleet planning..

Edited by Mohd Firdaus Bolong

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On the 8 787s its just a MOU only and is not really should even be counted as a real intent to purchase. But MAB should just stick to A350s instead of having another type of aircraft for this small fleet as it will meant increased costs in manpower training, having another set of spars and parts for maintenance and even for crew. This is like back to the old MAS days of having too many types of fleets and worse even with different engines for even the same type of aircrafts. MAB wide-body aircraft fleet is not that big a fleet.

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That's some strong words.. crook politician.. in any business we do, no matter what, there's always some kind of political twist to it. To say that some arms were twisted when PB himself said MAB were evaluating a330neo/787 back in August is out of order. Beli salah, x beli pn salah. a350 is replacing the a380. 787s maybe the widebodies replacing a330. Who knows, maybe someone else is wiser regarding MAB's fleet planning..

 

Mahathir used a stronger word publicly. Thief.

 

You are missing the point. It is not a question of beli or tak beli. Not a question of 350 vs 787.

 

But forcing MH to be involved in a charade.

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Mahathir used a stronger word publicly. Thief.

 

You are missing the point. It is not a question of beli or tak beli. Not a question of 350 vs 787.

 

But forcing MH to be involved in a charade.

How it is forcing them to be involved in a charade when as the head of state he's announcing something for the flag carrier? And Tun himself with all due respect, wasn't at all perfect during his handling of MAS. Or did MAS suddenly went bad when current PM took office? But thats for another day and topic.

 

787-9 is an ideal widebody. We were all feeling a bit of loss when MH retired all of its 777. To have another series added to the airline is a Godsend for me as a boeing fan.

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Now just hope mab doesnt skiddle out of mou deal. Or we'll have Supertrumps twitter tirade inbound and the PM has achieved continued fail streak at our expense. Haha

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To order 8 pieces of this composite plane and after that straight to Europe to look for better deal on used 330s and Neos just doesnt add up.

 

Dont talk about fleet flexibility, Malaysia Airlines cant afford it yet. They are not in the same league as SQ KL or AF or anyone for God's sake.

 

It will only look right if they decided 15 789 for 330 replacements but thats not what PB is looking for. He's looking for more buses.

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How it is forcing them to be involved in a charade when as the head of state he's announcing something for the flag carrier? And Tun himself with all due respect, wasn't at all perfect during his handling of MAS. Or did MAS suddenly went bad when current PM took office? But thats for another day and topic.

 

787-9 is an ideal widebody. We were all feeling a bit of loss when MH retired all of its 777. To have another series added to the airline is a Godsend for me as a boeing fan.

It is not about that.

 

Everyone here is concern that some inexperienced elected government officials and officers are meddling into MAB business strategy.

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How it is forcing them to be involved in a charade when as the head of state he's announcing something for the flag carrier? And Tun himself with all due respect, wasn't at all perfect during his handling of MAS. Or did MAS suddenly went bad when current PM took office? But thats for another day and topic.

 

787-9 is an ideal widebody. We were all feeling a bit of loss when MH retired all of its 777. To have another series added to the airline is a Godsend for me as a boeing fan.

 

Ok, so you cant see the wood for the trees as you are blinded by your love for the 789.

 

I like the 787 too. And I too would like MH to have the 787 in its fleet. But that's still not the point here.

 

Btw, the YDP Agong didn't make any announcement for the flag carrier.

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Since 787-9 is now thrust into the picture, perhaps MAB should establish a separate division for that kind of fleet specifically for Ultra Long Haul routes. MAB should make it work.

 

West coast of North America is within reach from KUL.

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Since 787-9 is now thrust into the picture, perhaps MAB should establish a separate division for that kind of fleet specifically for Ultra Long Haul routes. MAB should make it work.

 

West coast of North America is within reach from KUL.

Hahahah ! :D

(good one)

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Since 787-9 is now thrust into the picture, perhaps MAB should establish a separate division for that kind of fleet specifically for Ultra Long Haul routes. MAB should make it work.

 

West coast of North America is within reach from KUL.

 

Malaysia Airlines X? :rofl: :rofl:

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The B787 and the A350 are uber efficient.

 

Although they were both designed for long haul missions, their efficiency means that they can also be deployed for regional flights profitably. Many 787 and 350 operators do that. It gives an airline options. So MAS shouldn't have any problems finding destinations to fly them to.

 

Like many here, I was initially surprised that only 8 B789s were ordered. But looking into the details, it's more of leveraging on the existing B737 MAX orders and bringing the wide-body requirements into play. It wasn't a typical outright wide-body only order. This order only addresses the medium term.

 

Airbus is still very much in the picture for the wide-body replacement exercise. 6 A359s and 8 B789s simply ain't enough.


With regards to all the government/PM/BN bashing on the nature of the 787 orders, it's still better than having me as Prime Minister.

 

I would have made MAS order something like 50 B787s, 50 B777Xs and a dozen B747-8s for good measure.

 

Nevermind that I can't think of where to fly these planes to.

 

It looks good and that's good enough.

 

#getyourprioritiesright :rofl: :crazy: ::8P::

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