Malaysia wants Airbus, Embraer to consider Malaysia as MRO, supply chain hub

New Straits Times

5 hours ago

KUALA LUMPUR: Malaysia wants aircraft supplier companies such as Airbus and Embraer to make the country a hub for maintenance, repair and overhaul (MRO), training and supply chain activities, if the agreements to purchase dozens of aircraft by AirAsia and Malaysia Airlines are realised.
Transport Minister Anthony Loke said that apart from discussing the potential purchase of aircraft, the government is also taking the same approach to ensure that the purchase provides benefits or advantages to Malaysia to attract investment.
"This is the strategy we are using so that these purchases are not just one-way, they also benefit Malaysia in the aerospace sector.
"Of course, our airlines need to have a more diversified purchasing strategy, including Malaysia Airlines, which is now also diversified in terms of purchasing aircraft and not just relying on one supplier," he told reporters in Rio de Janeiro, Brazil at the end of Prime Minister Datuk Seri Anwar Ibrahim's official visit to Italy, France and Brazil.
Apart from that, he said the government also suggested that France consider Malaysia as a potential location for it to set up a 'final assembly line' for the aircraft following Airbus receiving many aircraft orders.
"Presently, Airbus has quite a lot of orders, many aircraft have not been delivered and many airlines that have ordered Airbus aircraft are facing delays.
"Airbus currently has a backlog of 8,000 aircraft, so it has problems in terms of supply chain and so on to complete these aircraft. Of course this backlog will continue and that is why we also hope that Airbus can invest more in Malaysia in terms of securing the supply chain and considering Malaysia as an aircraft assembly destination," he said.
Should that be realised, this will boost the country's aerospace sector in addition to providing job opportunities for Malaysians, said Loke.
"This is the strategy we hope for through diplomacy (aviation diplomacy) like this and the presence of Prime Minister Datuk Seri Anwar Ibrahim speaking to the French President and the company directly together with the Airbus management, I think, is a proactive diplomatic action from the country," he said.
AirAsia has signed a deal to buy Airbus 321XLR long-haul aircraft worth US$12.25 billion (RM51.72 billion), with delivery confirmed in 2028.
According to Loke, Airbus already operates in Malaysia including having an MRO and training centre.
"For example, they have Airbus Helicopter training based in Subang, it is already there but what we want is for them to expand their operations," he said.
Meanwhile, Malaysia Aviation Group (MAG), the parent company of national carrier Malaysia Airlines, has exercised its purchase rights for 20 additional A330neo aircraft through a direct order with Airbus.
The new order builds on MAG's initial commitment in 2022 for 20 A330neo aircraft - comprising 10 directly purchased and 10 leased from Avolon - bringing the group's total A330neo commitment to 40 aircraft to date. Deliveries from the additional batch are scheduled between 2029 and 2031.
"Malaysia Airlines has ordered 20 A330neo aircraft, but so far, only four were delivered. This was ordered three years ago, there are 16 more to go. They add on another 20 right now, so altogether there will be 40 A330neo aircraft and on top of that, Malaysia Airlines is also considering A350 aircraft as well. So that is something they have to make a decision soon," said Loke.
Composites Technology Research Malaysia Sdn Bhd, based in Batu Berendam, Melaka, has also gained the trust of the world's largest airlines including Airbus and Boeing, for the production of several components for the companies' aircraft.
Brazilian aircraft manufacturer Embraer has nearly 20 operators in the Asia Pacific, collectively operating around 200 E-Jets.
Anwar has met with the CEO of Embraer, and airlines AirAsia and Air Borneo have expressed interest in making purchases. – BERNAMA