Malaysia Airlines to order new jets

Friday, 21 September 2007: Malaysia Airlines said it will decide whether to order more than 100 jets by December and whether a code-share agreement with a Chinese partner has been finalised, according to Managing Director, Idris Jala.Mr Jala did not specify which jets would be order, how much would be spent and has also refrained from naming the airline’s potential partner in China which has been speculated as China Southern. The airline is also in talks with a similar code-share with an airline in India. It is understood Airbus and Boeing have both submitted propsoals to supply as many as 55 narrow-body jets, but the airline is expected to ask for new proposals for long-haul wide-body jets.As part of a major expansion, the carrier said in May it was considering purchasing up to 110 aircraft."By the end of this year, we would have finalized some of our key decisions moving forward," Mr Jala said. The airline has said it plans to use internal funds to support the purchase, which will assist the airline to grow in Asia where its network remains limited compared to rivals in the region."Much of our core growth will be in Asia...Asia is our core network, and this will require a lot of smaller aircraft," Mr Jala said.The carrier suffered record looses in 2005/06 and is the midst of a three-year restructuring, however has targeted this year’s net profit between MYR300 million and MYR700 million, the highest ever for the company.

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