MAS-ATR

Malaysia Airlines (MAS) has entered into an agreement with European aircraft manufacturer ATR to buy 36 turboprop ATR 72-600 jets for MYR3bn ($981m).

The deal was signed by Malaysia Airlines group chief executive officer Ahmad Jauhari Yahya and ATR chief executive officer Filippo Bagnato.

It forms part of the expansion strategy for Firefly and MASWings, the fully owned subsidiaries of Malaysia Airlines.

Of the 36 new jets, Firefly will operate 20 aircraft, while the remaining will be used by MASwings.

Firefly will use the new aircraft to expand its routes within Malaysia and to Indonesia, the Philippines and southern Thailand. At present, it operates a fleet of 12 ATR 72-500 jets.

MASwings, which operates ten ATR 72-500s, will replace its ageing fleet and expand its network to the rural parts of Sabah and Sarawak.

ATR is expected to deliver three aircraft in 2013, five in 2014 and six in 2015 and the rest in the subsequent years.

"Firefly will use the new aircraft to expand its routes within Malaysia and to Indonesia, the Philippines and southern Thailand."

Yahya said that the additional aircraft would be used to continue growing Firefly’s network and provide customers with more travel options.

The new aircraft are well-timed for MASwings, which has set its focus on expansion in the Brunei, Indonesia, Malaysia, and the Philippines regions, while also increasing travel comfort for domestic operations within East Malaysia, Yahya added.

MAS is adding new jets as it seeks to cut costs, reduce flights on unprofitable routes and attract more passengers in order to compete with low-cost carriers such as AirAsia.

Earlier this month, AirAsia placed a $9.4bn firm order with Airbus for 100 A320 aeroplanes as part of a fleet expansion strategy.


Image: ATR CEO Filippo Bagnato (left) shakes hand with Malaysia Airlines group CEO Ahmad Jauhari Yahya after signing an agreement to sell 36 ATR 72-600 jets to the airlines. Photo: courtesy of FlyFirefly Sdn Bhd.