GLOBAL lessors and lenders will pay for the national carrier’s 16 new Boeing aircraft, said Malaysia Airlines Bhd (MAS) CEO Peter Bellew.

The Malaysian Reserve reported today that Bellew said MAS would not own the aircraft, but would lease it from leasing firms and lenders as was “the norm”, in a September 15 internal memo it sighted.

The first delivery of the eightwide-body Boeing 787-9 Dreamliner, with a list price of US$2.5 billion (RM10.5 billion), is expected in the third quarter of 2019.

In the memo described as “lengthy and detailed” to the 14,000 MAS employees, Bellew said the deal coincided with the end of lease agreements for some of the airline’s aircraft, and the new orders would arrive in time to replace them

He said the 16 aircraft were part of a deal to buy 25 Boeing aircraft with an option for 25 more, which was inked last year.

“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 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,” said Bellew.

MAS last week inked a memorandum of understanding to purchase from Boeing Co eight 787-9 Dreamliners  and eight 737 MAX 8s. 

Prime Minister Najib Razak announced the plan to buy additional planes for the country’s flag carrier during his visit to the White House, where he told US President  Donald Trump that Malaysia Airlines would buy 25 Boeing 737 jets and eight 787 Dreamliners.

He said the airline would probably order another 25 737s over the next five years, in a deal worth more than US$10 billion (RM42 billion).

The opposition has questioned the advisability of MAS buying more planes, when it undergoing a restructuring that has necessitated the laying off of more than  20,000 employees so far.

Rais said MAS had also had to sell some of its planes recently to cut costs.

“With all this happening, why does Najib have to buy more planes?

“The main question that has to be asked is, how are they going to get the funds to buy the planes?” – September 20, 2017.