Latest news with #MalaysiaAviationGroup
Borneo Post
11-07-2025
- Business
- Borneo Post
Malaysia Airlines' ‘Time for Memorable Journeys' campaign offers all-in return fares from RM119 domestic, RM559 international
Malaysia Airlines is offering all-in return fares from as low as RM119 for domestic destinations and RM559 for international travel. KUALA LUMPUR (July 11): Malaysia Airlines' latest 'Time for Memorable Journeys' campaign until July 21 is offering all-in return fares from 119 for domestic destinations and RM559 for international travel. The promotion applies for travel up until May 31, 2026, giving holidaymakers ample time to plan their dream getaways. In line with the campaign, Malaysia Airlines continues to elevate its signature Malaysian Hospitality with modern enhancements to ensure a smoother and more rewarding journey. Passengers can expect a complete end-to-end travel experience that includes upgraded in-flight services, improved digital capabilities, and greater comfort across various touchpoints. 'With each new product enhancement and service improvement, we're building journeys that are not only memorable but also seamless and rewarding. Our continuous improvement in on-time performance reflects our commitment to delivering a dependable and enjoyable experience. This is truly the time for Malaysian Hospitality to take centre stage,' said Malaysia Aviation Group chief commercial officer of airlines Dersenish Aresandiran. Young flyers will receive the Pilot Parker Activity Pack to stay entertained, while all passengers can enjoy unlimited in-flight WiFi on the airline's A350-900, A330neo, Boeing 737-8, and selected A330-300/200 aircraft. Additionally, passengers can pre-order meals from the Best of Asia inflight menu between 30 days and 24 hours before departure, ensuring a personalised and satisfying dining experience onboard. For selected routes to Melbourne, Auckland, and Bali, the newly-introduced Airbus A330neo aircraft offers an enhanced travel experience. In Economy Class, the aircraft is fitted with 269 ergonomically designed Recaro R3 seats, 24 of which provide extra legroom. Each seat is equipped with a 13.3-inch 4K screen, Bluetooth connectivity, a Kids Mode, and parental controls to deliver a more immersive and family-friendly journey. Travellers can also enjoy added perks such as up to 10 per cent off seat selection and extra baggage allowance on selected routes during this promotional period. Dersenish Aresandiran Malaysia Airlines
Free Malaysia Today
10-07-2025
- Business
- Free Malaysia Today
MAG banking on scale to stay in the game
MAG managing director Izham Ismail said the pandemic's aftershocks, compounded by geopolitical tensions, are driving up costs for aviation parts and delaying access to critical components. PETALING JAYA : Scale and capacity are critical for airlines competing in today's increasingly crowded skies. Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, learned this the hard way when it grounded ageing aircraft over safety concerns, triggering an 18% reduction in capacity in the fourth quarter of 2024. These cuts led to the cancellation of nearly 6,300 flights and disrupted around one million passengers. Significantly, they weighed on the group's financials, with net profit after interest and tax (NIAT) slumping to RM54 million for the financial year ending 2024. In the third quarter of this year, MAG has restored operations to near previous levels. Its fleet now stands at 115 aircraft, including 42 Boeing 737-800s under Malaysia Airlines and five under Firefly. However, the age of its fleet remains a structural vulnerability. 'Malaysia Airlines did not invest itself well over the past two decades. The product is outdated,' MAG managing director Izham Ismail told FMT in an exclusive interview. Lease and supply chain vulnerabilities Adding to the structural vulnerability is MAG's historic reliance on operating leases to manage capital expenditure. These 12-year leases may reduce upfront investment, but they shift substantial costs to the tail-end of the aircraft lifecycle. Under typical end-of-lease clauses, the aircraft must be returned in near-new condition — requiring costly overhauls of engines, interiors and airframes. While viable under normal market conditions, the Covid-19 pandemic exposed the limitations of this approach. With borders closed, the fleet grounded and supply chains disrupted, the backloaded cost obligations of these leases became a serious strain on MAG's cash flow. More than three years on, supply chain instability continues to be a thorn in the industry's side. Izham noted that the pandemic's aftershocks, compounded by geopolitical tensions — particularly in Ukraine, a key source of raw materials for aviation parts — are still driving up costs and delaying access to critical components. He believes these disruptions are likely to persist for at least another three to five years, pointing out that 'the game of catching up or producing components is not an overnight issue'. For airlines looking to refresh their fleet, long lead times only add to the complexity. 'Today, if you order an airplane, it doesn't come within the (usual) one or two years — it comes five, six years from now,' said Izham. These bottlenecks are exacerbated by global staff shortages and capacity issues at original equipment manufacturer (OEM) service providers in the maintenance, repair and operations (MRO) segment. Malaysia Airlines, which relies on Rolls-Royce and GE for engine maintenance and replacement, has found that despite service level agreements stipulating a 55-75-day window, aircraft and engines are often returned only after more than 100 days. While the situation is industry-wide, Izham admitted that some competitors are better equipped to weather the disruption. 'Other airlines have larger volumes in assets — they are able to reconfigure their network to accommodate the shortage of airplanes,' he said. Repairing the balance sheet MAG has taken several steps to address these longstanding vulnerabilities. Over 90% of its fleet was on operating leases, many of which were nearing maturity and bringing with them heavy maintenance obligations. To mitigate risks, the group launched a RM15 billion debt restructuring in 2020-2021. The effort included negotiations with lessors and creditors to defer payments, revise rental terms and ease end-of-lease conditions. According to Izham, the result has been a leaner, more agile balance sheet. Still, long-term sustainability will require a rethinking of the group's leasing strategy. MAG plans to gradually shift from operating leases towards a more balanced model that incorporates financial leases, which allow airlines to own aircraft via capital or debt financing. 'Currently, our assets are predominantly (about 90%) operating on leases. 'Slowly, we are shifting towards a more amiable position of at least striking a balance between operating leases and financing leases… But this doesn't happen overnight. We can only attain that in 2035. So, we have a long way to go,' Izham said. Despite improvements in top-line performance, Izham acknowledged that the group's cost base is 'not yet fully transformed'. Scaling up for survival With restructuring under way, MAG is also turning its focus towards fleet renewal and growth. The strategy is clear — scale matters. Izham explained that in today's aviation market, having a sufficient fleet size is essential for pricing power and market share. 'You look at the low-cost carriers — they have hundreds of airplanes. It's all about scale. 'The minute you have scale, you control market share. And when you have market share, you can price a product efficiently.' As part of its wider plan to modernise and expand its fleet, MAG is investing billions in new planes, including announcements of recent orders for narrow-body Boeing 737-8 and 737-10 aircraft and ongoing delivery of the wide-body A330neo aircraft since late 2024. The airline had also announced the acquisition of 20 additional A330neo aircraft, reinforcing its long-term vision of building a future-ready fleet that supports sustainable growth, delivers consistent value to passengers and strengthens competitiveness in key markets. For Izham, the need to scale isn't just strategic — it's existential. He added that Malaysia Airlines has had a chequered journey, but what was more crucial was having the stamina to move forward. 'Will it turn around overnight? The answer is no. It's all about resilience and staying the course.'
Globe and Mail
07-07-2025
- Business
- Globe and Mail
Airbus to Deliver 20 A330-900 Jets to Malaysia Aviation Group
Airbus SE EADSY recently secured a firm order from the Malaysia Aviation Group to deliver 20 of its A330-900 widebody commercial aircraft. This should bolster EADSY's commercial aircraft backlog and future revenue prospects. This contract win further strengthens Airbus' A330neo jet's position in the global commercial aircraft market, particularly for wide-body jets. Why A330-900? Airbus' A330-900 aircraft, powered by the next-generation Rolls-Royce Trent 7000 engines, can fly up to 7,350 nautical miles (13,334 km) and all types of routes, from short to medium and long range. This fuel-efficient aircraft boasts the capability to reduce fuel consumption and CO2 emissions by 25% compared to previous generation aircraft. Such exceptional attributes must have been boosting demand for this jet, resulting in strong order growth, like the latest one. Surging Global Demand Fuels EADSY's Growth Rising air passenger traffic, backed by enhanced air travel among passengers and executives, along with the increasing demand for fuel-efficient and modern aircraft, is driving growth in the commercial aviation market. To this end, Airbus expects the world's passenger fleet to nearly double during the 2025-2044 period, with the demand for new commercial jets totaling 43,420 new aircraft. This demand should get translated into meaningful revenue growth for this jet giant. In line with this, EADSY's commercial aircraft activities generated 4% year-over-year revenue growth in the first quarter of 2025. As of May 2025, the company has delivered 243 commercial aircraft to 61 customers. We expect the company to continue to record similar revenue growth in the coming quarters, thanks to such robust delivery numbers. The Zacks Consensus Estimate for Airbus' 2025 revenues suggests an annual improvement of 12.9%, further supporting this thesis. Opportunities for Other Aerospace Stocks Other prominent commercial aerospace players that are also expected to gain from the rising jet demand trends are mentioned below: The Boeing Company BA: The company enjoys a strong business footprint globally and has been the manufacturer of premier commercial jetliners for decades. Its commercial portfolio includes the 737, 767, 777 and 787 families of aircraft, as well as the Boeing Business Jet line. Boeing has a long-term (three to five years) earnings growth rate of 18.1%. The Zacks Consensus Estimate for BA's 2025 sales calls for an improvement of 25.6%. Embraer S.A. ERJ: The company is the third-largest manufacturer of commercial aircraft in the world. Its product portfolio of commercial jets includes E175-E2, E190-E2 and E195-E2. Embraer delivered an average earnings surprise of 150.60% in the last four quarters. The Zacks Consensus Estimate for ERJ's 2025 sales implies an improvement of 15.4%. Textron Inc. TXT: The company offers a wide range of commercial aircraft solutions, particularly business jets. Its product portfolio includes a handful of business aircraft like the Citation M2 Gen3, Citation CJ4 Gen3, Citation CJ3 Gen3, Citation Latitude and the Citation Longitude. Textron boasts a long-term earnings growth rate of 10%. The Zacks Consensus Estimate for TXT's 2025 sales suggests an improvement of 6.6%. EADSY Stock Price Movement In the past six months, shares of Airbus have risen 26.8% compared with the industry 's growth of 21.4%. EADSY's Zacks Rank Airbus currently carries a Zacks Rank #3 (Hold). You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here. Only $1 to See All Zacks' Buys and Sells We're not kidding. Several years ago, we shocked our members by offering them 30-day access to all our picks for the total sum of only $1. No obligation to spend another cent. Thousands have taken advantage of this opportunity. Thousands did not - they thought there must be a catch. Yes, we do have a reason. We want you to get acquainted with our portfolio services like Surprise Trader, Stocks Under $10, Technology Innovators, and more, that closed 256 positions with double- and triple-digit gains in 2024 alone. See Stocks Now >> Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report The Boeing Company (BA): Free Stock Analysis Report Embraer-Empresa Brasileira de Aeronautica (ERJ): Free Stock Analysis Report Textron Inc. (TXT): Free Stock Analysis Report Airbus Group (EADSY): Free Stock Analysis Report This article originally published on Zacks Investment Research (
The Sun
06-07-2025
- Business
- The Sun
Malaysia Aviation Group exercises purchase rights for 20 additional A330neo aircraft
PETALING JAYA: 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 – reaffirming its commitment to a long-term strategy for fleet renewal and network development. With this latest acquisition, Malaysia Airlines is set to become one of the largest A330neo operators in the Asia-Pacific region – strengthening its position as a leading premium airline in one of the world's fastest-growing travel markets. This 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 this additional batch are scheduled between 2029 and 2031. In a statement, MAG said the A330neo remains a cornerstone of MAG's fleet modernisation programme, enabling the group to serve high-growth markets more efficiently while enhancing the overall travel experience. MAG said the aircraft features the latest cabin design, including an all-suite Business Class with sliding privacy doors, full-flat beds, and direct aisle access. Across all cabin classes, passengers will enjoy refreshed interiors, next-generation seating, and the latest in-flight entertainment system – delivering a consistently premium journey in line with Malaysia Airlines' service standards. The expanded widebody fleet will enhance connectivity and drive network development across key markets in ASEAN, China, India, and Australasia – strengthening Malaysia Airlines' position as a leading premium carrier in the Asia-Pacific region. MAG managing director Datuk Captain Izham Ismail said, 'The A330neo continues to deliver the right balance of operational efficiency, range, and cabin comfort to support our network and growth strategy. With its enhanced fuel efficiency and flexibility across both regional and long-haul routes, the aircraft is a strong fit for our evolving market needs. It also allows us to offer a product that aligns with our premium positioning – streamlined, modern, and designed around passenger comfort and expectations. This additional order reinforces our long-term vision of building a future-ready fleet that supports sustainable growth, delivers consistent value to our passengers, and strengthens our competitiveness in key markets.' Airbus commercial aircraft executive vice-president sales Benoît de Saint-Exupéry said, 'We are proud to further strengthen our relationship with Malaysia Aviation Group as it expands its A330neo fleet. This repeat order is a strong endorsement of the A330neo's exceptional performance, fuel efficiency and passenger comfort, as well as a testament to the aircraft's popularity among the world's premium airlines.' To date, MAG has taken delivery of four A330neo aircraft, currently operating on selected services to Auckland, Melbourne and Bali. Six more are scheduled for delivery by the end of the year, with the remaining aircraft from the original order set to arrive progressively through to 2028.
Free Malaysia Today
05-07-2025
- Business
- Free Malaysia Today
Malaysia Airlines orders 20 more A330neo jets
Malaysia Airlines is on track to become one of the biggest A330neo operators in Asia-Pacific, with a total of 40 aircraft now on order. PETALING JAYA : Malaysia Aviation Group (MAG) has ordered 20 more Airbus A330neo aircraft, doubling its commitment as part of a long-term plan to modernise its fleet and expand its network across key Asia-Pacific markets. The deal, announced by the parent company of national carrier Malaysia Airlines Bhd, builds on its earlier commitment in 2022 for 20 A330neos – 10 purchased from Airbus and 10 leased from Avolon. This brings the airline's total order to 40 aircraft, making it one of the largest A330neo operators in the region. Deliveries for the latest batch are scheduled to take place between 2029 and 2031. MAG group managing director Izham Ismail said the A330neo remains a key part of the airline's fleet and network strategy. 'With its enhanced fuel efficiency and flexibility across both regional and long-haul routes, the aircraft is a strong fit for our evolving market needs,' he said in a statement today. 'This additional order reinforces our long-term vision of building a future-ready fleet that supports sustainable growth, delivers consistent value to our passengers, and strengthens our competitiveness in key markets.' Malaysia Airlines has so far received four A330neo jets, which are currently flying to destinations like Auckland, Melbourne and Bali. Six more are expected by the end of this year, with the remaining aircraft from the original order set to arrive in stages through 2028. Airbus executive vice-president of sales Benoit de Saint-Exupery said MAG's repeat order was a 'strong vote of confidence'. 'We are proud to further strengthen our relationship with Malaysia Aviation Group as it expands its A330neo fleet,' he said.
