malaysia airlines has signed a provisional agreement to acquire 20 airbus a330 neos to
replace its aging fleet of a330 wide-body jets in a deal that also involves aircraft leasing company
avalon the airline will buy 10 of the planes from airbus and then execute a sale and lease
back deal with avalon with the other 10 lease directly from avalon the carrier set on monday
in today's video we're going to talk about the big airbus order so without any further ado let's
begin malaysia airlines said it will acquire 20 airbus sc a330 neo wide body planes as it seeks
more fuel efficient jets amid a travel rebound the southeast asian carrier will purchase 10 a330 900
aircraft with the rest coming from lesser avalon holdings limited's existing order book it's set
in a statement monday the agreement will replace six airbus a3300s and another 15 a 300 300s and
is also likely to involve leasing around 10 of the a330 neo aircraft with the direct purchase of the
remainder from airbus the aircraft will deliver from 2024 onwards and be powered by rolls-royce
engines avalon has a long-standing relationship with mag and currently has four aircraft on lease
to mag avalon was a large customer of the a330 neo in 2014 and has a total of 48 a330 neo aircraft in
its portfolio with 26 owned and managed and 22 on order following this transaction avalon has
only two unplaced a330 neo in his order book in addition the mou also includes the purchase
of spare trend 7000 engines and engine maintenance services from the rolls-royce total care agreement
as rolls-royce flagship service offering total care covers off-wing repair and overall and is
designed to provide operational certainty for customers by transferring time on wing and
maintenance cost risks back to rolls royce it will also deliver enhanced aircraft availability thanks
to rolls royce in-depth engine knowledge that draws on our advanced engine health monitoring
isam ismail group chief executive officer mag said after an extensive technical evaluation and a
very competitive process we are delighted to have breached the strategic agreement with our partners
on the renewal of our wide body fleet through the acquisition of 28-330 neos the innovative
cost-effective successful tripartite approach offers a holistic solution to fleet owners
that is financially viable for mag as we secure a lower and stable cost base and with assurance
of support financing the acquisition of the a330 neos is a natural transition from our
current a330 neos fleet but the a330 neo will not only provide modernization to our fleet and
enhanced operational efficiency but also meet environmental targets through reduced fuel burn
per seat while keeping passenger safety and comfort at its core this is a significant
milestone as the group moves ahead towards the successful execution of our long-term business
plan 2.0 to position itself as a leading aviation services group within the region
in putrajaya malaysia's transport minister de tuxeri dr wika singh said the government is
supportive of mag's long-term investment to secure one of the best modern aircraft into service
this is not only relevant to refresh the airline's aging fleet to stay competitive
and provide comfort and convenience for its global customers but it also aligns with our
shared commitment towards sustainable aviation in malaysia to support broader decarbonization
efforts and to meet the global targets he said prior to witnessing the signing ceremony we said
that the government is impressed and encouraged by mag's fleet renewal as a key lever in its broader
sustainability strategy via the mag sustainability blueprint encompassing environmental social safety
governance and economic factors these efforts are in line with malaysia's pursuit of the
international civil aviation organization's global market-based measures in which malaysia recognizes
the importance of environmental sustainability parent malaysia aviation group has been cash
flow positive since the fourth quarter of last year with capacity restored to 60 of
pre-covered levels the stronger than expected recovery in air travel has provided a boost for
plane makers following the hiatus during the pandemic with wide body demand now picking up
after an early rebound in single isle sales bloomberg news reported in july that airbus
was leading a race against boeing co for a wide body jet replacement campaign at malaysia airlines
the carrier will operate the a330 neo which uses engines from roll source holdings plc
on its network covering asia the pacific and the middle east now that we've come to the end of this
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