Bloomberg Anywhere Login

Bloomberg

Connecting decision makers to a dynamic network of information, people and ideas, Bloomberg quickly and accurately delivers business and financial information, news and insight around the world.

Company

Financial Products

Enterprise Products

Media

Customer Support

  • Americas

    +1 212 318 2000

  • Europe, Middle East, & Africa

    +44 20 7330 7500

  • Asia Pacific

    +65 6212 1000

Communications

Industry Products

Media Services

Follow Us

Malaysian Air Orders ATR Turboprop Planes Worth $982 Million

Dec. 18 (Bloomberg) -- Malaysian Airline System Bhd., the nation’s largest long-haul carrier, agreed to buy 36 turboprop planes worth 3 billion ringgit ($982 million) from Avions De Transport Regional to tap rising travel demand in the region.

Malaysian Air is purchasing the ATR 72-600 planes for its Firefly and MASwings units that operate short-haul flights, the Subang Jaya, Malaysia-based carrier said in a stock exchange filing today. Deliveries of the aircraft are expected to start from the second quarter of next year, the company said.

Firefly, which began operations in 2007, will add 20 of the new planes while the rest will be used by MASwings, according to the statement. Malaysian Air is adding new planes and paring unprofitable routes as it seeks to cut costs and lure more travelers amid competition from budget carrier AirAsia Bhd.

Malaysian Air last month said it plans to raise as much as 3.1 billion ringgit from a rights issue after posting its first profit in seven quarters. Part of the funds will be used to make pre-delivery payments to Boeing Co. and Airbus SAS.

Firefly is expected to “rapidly grow” in the next five years, Ahmad Jauhari Yahya, Malaysian Air’s group chief executive officer, said in the statement. The unit currently operates a fleet of 12 ATR 72-500 planes out of Penang and Subang to destinations including Indonesia and Thailand.

To contact the reporter on this story: Barry Porter in Kuala Lumpur at bporter10@bloomberg.net.

To contact the editor responsible for this story: Neil Denslow in Hong Kong at ndenslow@bloomberg.net

Please upgrade your Browser

Your browser is out-of-date. Please download one of these excellent browsers:

Chrome, Firefox, Safari, Opera or Internet Explorer.