Thursday, April 01, 2010

Malaysia Airlines orders 17 aircraft from Airbus

Malaysia Airlines placed a firm order yesterday for 15 A330-300 widebodied aircraft and two A330-200F freighters, at a list price of about US$3.6 billion.

The cost, however, does not include options for another 10 A330-300 aircraft and two A330-200F freighters.

Managing Director cum Chief Executive Officer Tengku Datuk Azmil Zahruddin said the price of each aircraft is about US$170 million and the exercise would be financed through proceeds from a rights issue as well as additional debt funding.

The national carrier had under RM3 billion in cash as at December 2009 and its gearing level was at 1.1 times.

“With new aircraft coming in, we can use it for growth, if the economy is doing well. Otherwise, we will do the necessary replacement of aircraft.

“It depends on where we are, at that point in time,” he told reporters after signing the sales and purchase agreement with Airbus on the sidelines of Invest Malaysia 2010 here yesterday.

Azmil said the current Malaysia Airlines fleet is at an average of about 11-12 years old this is still considered as being relatively young.

Continue reading at: Malaysia Airlines orders 17 aircraft from Airbus

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