Malaysia Aviation Group Orders 30 Boeing 737 MAX Jets, Secures Option For 30 More Amid Rising Southeast Asia Demand

Malaysia Aviation Group announced an order for 30 Boeing Co. BA 737 MAX jets on Friday, with options for 30 more aircraft as the carrier seeks to renew its single-aisle fleet amid projected strong growth in Southeast Asian air travel.

What Happened: The order includes 18 737-8 and 12 737-10 jets and was previously listed as unidentified on Boeing’s January orders report. The deal will enable Malaysia Airlines to introduce new premium features, including lie-flat seats, while addressing rising travel demand in the region.

“This is a significant investment for Malaysia Aviation Group, enabling us to deliver cutting-edge premium cabin offerings and state-of-the-art technology to our customers,” said Izham Ismail, group managing director of Malaysia Aviation Group.

Boeing projects Southeast Asia’s commercial airplane fleet will grow nearly 250% over the next 20 years, with the region expected to require more than 4,700 new aircraft through 2043 — nearly 80% being single-aisle jets.

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Why It Matters: The order comes as Boeing faces scrutiny over delivery delays affecting airlines globally. India’s Akasa Air, awaiting 226 Boeing 737 MAXs, recently expressed frustration with CEO Vinay Dube reportedly stating, “We just don’t have enough aircraft to fly.”

Meanwhile, Japan Airlines ordered 17 Boeing 737-8 jets earlier this week to replace aging 737-800s, building on a previous order from March 2023.

Boeing has warned that potential tariffs from escalating trade tensions could increase costs, with AerCap AER CEO Aengus Kelly cautioning that a Boeing 787 could face up to $40 million in additional costs, potentially pushing airlines toward European rival Airbus SE EADSY.

The 737 MAX offers 20% reduced fuel use and emissions compared to previous models, according to Boeing.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.