Malaysia Airlines purchases 15 new Airbus A330 jets

Malaysia’s national carrier Malaysian Airlines has said it is to purchase 15 new Airbus A330 aircraft as part of a fleet expansion.

The airline signed the deal on Tuesday with Airbus for 15 aircraft, with an option for a further 10 aircraft. The airline says the 25 planes have a list price of $5 billion, although airlines usually get discounts for bulk purchases.

Chief executive of the airline, Azmil Zahruddin said the aircraft would be delivered from 2011 to 2016 and would be used to serve growing markets in Asia, Australia and the Middle East.

He also went on to say that the new aircraft would be funded through a proposed share issue and borrowings.

Meanwhile, the airline has claimed it is still on target to achieve its Business Turnaround Plan 2, an annual target profit of RM 1.5 billion to RM 3.5 billion by 2012.

The BTP programme was launched in January last year with an emphasis on growth and turning the airline into a five-star carrier.

Under the existing fleet, Malaysia Airlines is leasing 81 aircraft, but with the re-fleeting exercise, the airline could potentially ad a further 66 jets to the fleet by 2016.

Azmil said not many airlines were purchasing new aircraft given the current world economic situation, and the selling price of jets are now cheaper.

Malaysia Airlines has also announced the acquisition of six undelivered Airbus A380 jets.