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The Sun
08-07-2025
- Business
- The Sun
Malaysia seeks Airbus, Embraer investment in MRO and supply chain
KUALA LUMPUR: Malaysia is pushing for global aircraft manufacturers Airbus and Embraer to establish the country as a key hub for maintenance, repair, and overhaul (MRO) operations, training, and supply chain activities. This follows major aircraft purchase agreements by AirAsia and Malaysia Airlines. Transport Minister Anthony Loke stated that the government is ensuring these aircraft deals bring broader economic benefits to Malaysia. 'Our strategy ensures these purchases are not one-way transactions. We want investments that boost Malaysia's aerospace sector,' he said during Prime Minister Datuk Seri Anwar Ibrahim's official visit to Brazil. Loke also proposed that Airbus consider Malaysia as a potential location for a final aircraft assembly line, given the company's backlog of 8,000 undelivered planes. 'Airbus faces supply chain challenges. We hope they expand operations here, creating jobs and strengthening our aerospace industry,' he added. AirAsia has confirmed an order for Airbus A321XLR long-haul jets worth US$12.25 billion (RM51.72 billion), with deliveries starting in 2028. Meanwhile, Malaysia Airlines' parent company, Malaysia Aviation Group (MAG), has ordered 20 additional A330neo aircraft, bringing its total commitment to 40. Deliveries for the new batch are expected between 2029 and 2031. Malaysia's aerospace capabilities are already recognized, with Composites Technology Research Malaysia in Melaka producing aircraft components for Airbus and Boeing. Embraer, with nearly 200 E-Jets operating in Asia Pacific, has also drawn interest from AirAsia and Air Borneo. - Bernama
New Straits Times
08-07-2025
- Business
- New Straits Times
Malaysia wants Airbus, Embraer to consider Malaysia as MRO, supply chain hub
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
Daily Express
06-07-2025
- Business
- Daily Express
AirAsia inks RM51 billion Airbus deal to add 70 long-range jets
Published on: Sunday, July 06, 2025 Published on: Sun, Jul 06, 2025 By: Bernama Text Size: Capital A Bhd Chief Executive Officer Tan Sri Tony Fernandes Kuala Lumpur: AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus 321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd Chief Executive Officer Tan Sri Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MoU) with Airbus in Paris Saturday for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which are targeted to serve Central Asia, the Middle East and Europe, among others. Advertisement 'This will probably make us one of the largest users of the XLR aircraft, the 321XLR, and is really the next stage of our transformative growth in terms of creating the world's first low-cost multihub network carrier. 'This will enable us to fly to Europe, and we're hoping to launch our first European flight this year,' he said during Capital A's virtual media briefing on Friday, in conjunction with the agreement signing ceremony. The agreement was signed between Fernandes and Airbus Commercial Aircraft Chief Executive Officer Christian Scherer, witnessed by Prime Minister Datuk Seri Anwar Ibrahim. Fernandes said the next-generation A321XLRs will operate alongside AirAsia's all-Airbus fleet of A320 Family and A330 aircraft, and aims to carry 150 million guests annually by 2030, reaching a cumulative total of 1.5 billion guests since inception. He said AirAsia plans to finance the aircraft order through bank leases. Fernandes also confirmed that the group is set to announce another aircraft order next month, but declined to provide further details. Meanwhile, he said the group is working to issue its first bond by October this year. 'This is the first time in our history that we've been rated by international credit rating agencies,' he noted. 'As interest rates begin to moderate, which I'm hopeful will happen soon, it's only natural for us to return to our traditional model of owning aircraft. 'Previously, we shifted from the financing markets to operating leases due to high interest rates and strong capital availability in the leasing space. We're now reassessing that strategy,' he said. On Capital A's proposed regularisation and restructuring plan, Fernandes said the company is expecting to resubmit the decision letter to Thailand's Securities and Exchange Commission within the next week or two. 'Once we dispose of the aviation business, Capital A will effectively exit Practice Note 17 (PN17),' he said. He added that six of the group's non-airline businesses, namely Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, OTA, BigPay, Santan, and AirAsia Brand Co (ABC) are currently exploring the possibility of a dual listing in Hong Kong. As for Capital A, it is also considering a dual listing and independent capital raising. However, Fernandes said 'the AirAsia Group itself will not be listed in Malaysia'. * Follow us on our official WhatsApp channel and Telegram for breaking news alerts and key updates! * Do you have access to the Daily Express e-paper and online exclusive news? Check out subscription plans available. Stay up-to-date by following Daily Express's Telegram channel. Daily Express Malaysia
The Star
05-07-2025
- Business
- The Star
AirAsia inks US$12.25bil Airbus deal to add 70 long-range jets
KUALA LUMPUR: AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus 321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd chief executive officer Tan Sri Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MoU) with Airbus in Paris today for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which are targeted to serve Central Asia, the Middle East and Europe, among others. "This will probably make us one of the largest users of the XLR aircraft, the 321XLR, and is really the next stage of our transformative growth in terms of creating the world's first low-cost multihub network carrier. "This will enable us to fly to Europe, and we're hoping to launch our first European flight this year,' he said during Capital A's virtual media briefing on Friday, in conjunction with the agreement signing ceremony. The agreement was signed between Fernandes and Airbus Commercial Aircraft chief executive officer Christian Scherer, witnessed by Prime Minister Datuk Seri Anwar Ibrahim. Fernandes said the next-generation A321XLRs will operate alongside AirAsia's all-Airbus fleet of A320 Family and A330 aircraft, and aims to carry 150 million guests annually by 2030, reaching a cumulative total of 1.5 billion guests since inception. He said AirAsia plans to finance the aircraft order through bank leases. Fernandes also confirmed that the group is set to announce another aircraft order next month, but declined to provide further details. Meanwhile, he said the group is working to issue its first bond by October this year. "This is the first time in our history that we've been rated by international credit rating agencies,' he noted. "As interest rates begin to moderate, which I'm hopeful will happen soon, it's only natural for us to return to our traditional model of owning aircraft. "Previously, we shifted from the financing markets to operating leases due to high interest rates and strong capital availability in the leasing space. We're now reassessing that strategy,' he said. On Capital A's proposed regularisation and restructuring plan, Fernandes said the company is expecting to resubmit the decision letter to Thailand's Securities and Exchange Commission within the next week or two. "Once we dispose of the aviation business, Capital A will effectively exit Practice Note 17 (PN17),' he said. He added that six of the group's non-airline businesses, namely Asia Digital Engineering (ADE), Teleport, AirAsia MOVE, OTA, BigPay, Santan, and AirAsia Brand Co (ABC) are currently exploring the possibility of a dual listing in Hong Kong. As for Capital A, it is also considering a dual listing and independent capital raising. However, Fernandes said "the AirAsia Group itself will be listed in Malaysia'. - Bernama
Malaysiakini
05-07-2025
- Business
- Malaysiakini
AirAsia inks US$12.25b Airbus deal to add 70 long-range jets
AirAsia has signed an agreement to buy US$12.25 billion (RM51.72 billion) worth of long-range Airbus A321XLR aircraft, with deliveries confirmed by 2028, said Capital A Bhd CEO Tony Fernandes. He said the low-cost carrier inked a memorandum of understanding (MOU) with Airbus in Paris today for 50 A321XLRs with rights for 20 A321XLRs, the new fleet of which is targeted to serve Central Asia, the Middle East, and Europe, among others. 'This will probably make us one of the...
