(Reuters) – Malaysia Airlines has signed a provisional agreement to acquire 20 Airbus A330neos to replace its ageing fleet of A330 widebody jets in a deal that also involves aircraft leasing company Avolon.
The airline will buy 10 of the planes from Airbus and then execute a sale-and-leaseback deal with Avolon, with the other 10 leased directly from Avolon, the carrier said on Monday.
Industry sources last week told Reuters a deal was expected on Monday.
The planes, which will have Rolls-Royce Holdings Plc engines, are scheduled to be delivered starting in the third quarter of 2024 through 2028, the airline said.
“The A330neo will not only provide modernisation to our fleet and enhanced operational efficiency, but also meet environmental targets through reduced fuel-burn per seat while keeping passenger safety and comfort at its core,” Malaysia Airlines Chief Executive Izham Ismail said in a statement.
The airline said it was also working with Airbus on a wider collaboration in Malaysia in areas including sustainable aviation fuel, training, maintenance and airspace management.
(Reporting by Jamie Freed in Sydney; Editing by David Goodman and David Holmes)
