Malaysia Airlines has agreed a deal with leasing firm Avolon for the financing of 20 new generation widebody aircraft.
The transaction with the carrier’s state-run owner Malaysia Aviation Group (MAG) covers Airbus A330neos with deliveries from 2024.
The agreement will see ten of the aircraft come from Avolon’s order book and the remainder under a sale and leaseback arrangement.
Avolon chief executive-designate Andy Cronin said: “As the Asian aviation market continues to emerge from the pandemic, this A330neo transaction will help MAG renew its fleet and position them to capitalise on market recovery.
“The enhanced fuel-efficiency and performance, as well as the unit cost improvements of the A330neo compared to older generation aircraft, will allow MAG to meet the growing demand for air travel in the region – further strengthening their position as one of the leading carriers of choice in the Asia Pacific market.
“As previously disclosed, we are experiencing a rapid recovery in demand for our order book slots for both our single and twin-aisle new technology aircraft, and we are delighted to partner with MAG on this milestone transaction.”
Malaysia Aviation Group chief executive Izham Ismail added: “We are pleased to conclude a strategic understanding with Avolon on the renewal of our widebody fleet modernisation through the leaseback arrangement of 10 A330neo aircraft, and acquire another 10 aircraft directly from Airbus.
“The innovative, cost effective, successful approach offers a holistic solution to fleet owners that is financially viable for MAG as we secure a lower and stable cost base, and with assurance of support financing.”