Malaysia Airlines says aircraft delays threaten expansion plans
The carrier plans an 8% increase in passenger capacity and up to three additional destinations, but late deliveries could disrupt those plans.
Malaysia Airlines Bhd faces aircraft delivery delays running into months that could hinder its expansion, according to Nasaruddin A Bakar, chief executive officer of parent company Malaysia Aviation Group.
Speaking in Kuala Lumpur, Nasaruddin said the airline planned to raise passenger-carrying capacity by 8% and introduce as many as three destinations. Late arrivals of aircraft could require it to obtain additional spare parts or reduce capacity, he said.
Nasaruddin said demand prospects remained strong, even as high oil prices pushed airfares higher. Delivery disruptions risk limiting the airline’s ability to meet that demand. Plane and engine manufacturers have struggled to increase production, with other airlines also facing lengthy waits.
Separately, people familiar with the matter said Malaysia Airlines was nearing a multibillion-dollar deal for Boeing Co 787 Dreamliners. Asked about the deal, Nasaruddin said the company intended to complete an order covering 20 widebody aircraft, potentially as early as November.
