New Boeing Order Defended

Malaysia Airlines has been facing some scrutiny following the purchase of new commercial aircraft from American planemaker Boeing.

A contract, which came only after much deliberation, was signed in March and involved up to 60 of the popular 737 MAX jets to elevate single-aisle operations.

However, since the Malaysia Aviation Group (MAG) has been under some pressure and scrutiny from onlookers and quarters, as reported by The Edge Malaysia.

Much of the scrutiny centres around the usage of taxpayers’ money, and feeling this was not something neccesary for the broader airline, a stance that the Investment, Trade and Industry Minister of Malaysia rejects.

Tengku Datuk Seri Zafrul Abdul Aziz says the deal with Boeing is not a waste of taxpayers’ money. The contract signing represents an investment in the future, planned for quite some time to occur, and will be financed in full by the company’s funds.

Away from this, with the persistent threat of tariffs and their increasing nature, it hasn’t been uncommon for countries to sign significant deals to reduce tariffs with the United States, and this subsequently includes new aircraft purchases.

This has been visible with the likes of Thailand, which will purchase new aircraft. Bangladesh was announced last week as the next to commit to new Boeing aircraft, and even Japan is expected to sign for many new commercial aircraft as part of trade deals.

However, in this case, the purchase was not made just to reduce tariffs, the minister says; instead, it was a decision that was part of many other agreements in a bid to elevate Malaysia in the coming years.

Additionally, the move shows that there is an appetite from Malaysia to be a buyer, a strategy implemented to ensure the best interests of all companies in the country are protected.

What Is The Boeing Order?

But what deal has specifically attracted much attention from locals in Malaysia over the circumstances? This all centres around an order by Malaysia Airlines for the 737 MAX.

The carrier has selected 18 middle-ground 737-8s to improve its business efficiency and committed to 12 of the high-capacity 737-10s. But it didn’t stop there, with options included in the contract for a further 30 units should they wish to be activated at a later date.

The 737-10 was specifically purchased to help elevate capacity on the single-aisle network in the coming years. This variant, however, at this stage remains uncertified.

As for a further purchase of the 737-8, this middle-ground option is seen as crucial to the business because of its versatility, which means it can be switched across a host of airlines’ routes.

While the purchase was agreed in March, the deal was listed on Boeing’s orders and deliveries page as an unidentified purchase in January 2025, thus, right at the time of the administration changeover.

The 737 MAX isn’t the only jet on the radar, though. The Global President of Boeing, speaking to the Business Times, suggested the 777X could be an option well worth considering for the future of the Kuala Lumpur-based company.

Ongoing evaluations are therefore being made to determine the best direction to head as more widebody aircraft must be secured to cope with the strong levels of demand expected in the coming years.