Boeing and Malaysia Airlines sign MoU for 16 airplanes

Boeing and Malaysia Airlines Berhad (Malaysia Airlines) today signed a Memorandum of Understanding for 16 airplanes during a ceremony at the St. Regis Hotel in Washington D.C. 

The signing was witnessed by Dato’ Sri Mustapa bin Mohamed, Malaysian Minister of International Trade and Industry and in the presence of The Honorable Dato’ Sri Muhammad Najib Bin Tun Abdul Razak, Prime Minister of Malaysia as well as members from the airline and Boeing.

The announcement includes eight 787-9 Dreamliners by converting eight of Malaysia Airlines’ existing order of the Boeing 737 MAX aircraft and eight additional purchase rights of the 737 MAX 8s as well as Boeing’s Global Fleet Care service to maintain the national carrier’s current and future Boeing airplanes. Once finalized, the deal will be posted to Boeing’s Orders and Deliveries website. 

“Malaysia Airlines is proud to sign this MOU for the widebody Boeing 787-9 Dreamliners and additional 737 MAXs, building on our more than 40 years of partnership with Boeing,” said Peter Bellew, managing director and chief executive officer of Malaysia Airlines. “New widebody aircraft are a key to making Malaysia Airlines a premium airline offering a five star product again. The extraordinary range of the 787-9 gives an ability to operate to any point in Europe and some USA destinations in the future from Kuala Lumpur. The MOU with Boeing on their Global Fleet Care program will allow the two companies to build a world class MRO for the 737 MAX, 787 and 737NG based on Malaysia’s existing facilities in Kuala Lumpur.”

Malaysia Airlines currently operates more than 50 Next-Generation 737s and has an additional 25 737 MAXs on order, including 10 for the new 737 MAX 10. 

“Boeing offers the very best widebody and single aisle airplanes in the world and we are delighted Malaysia Airlines continues to put its trust and confidence in Boeing with this MOU for 16 Boeing airplanes,” said Kevin McAllister, President and Chief Executive Officer, Boeing Commercial Airplanes. “The 787 and the 737 MAX will provide Malaysia Airlines with unmatched fuel efficiency, economics and a superior passenger experience as they continue to grow their business across Southeast Asia and beyond.” 

The 787 is a family of technologically advanced, super-efficient airplanes with new passenger-pleasing features and uses 25 percent less fuel and with 20 to 25 percent fewer emissions than the airplanes it replaces. The 737 MAX 10 will be the most profitable single-aisle airplane, offering the lowest seat costs ever. The 737 MAX family has been designed to offer customers exceptional performance, flexibility and efficiency, with lower per-seat costs and an extended range that will open up new destinations in the single-aisle market.

Africa is currently undergoing massive infrastructural development, especially with projects aimed at boosting cross border trades.

The continent, through the African Union’s Continental Free Trade Area (CTFA), is also on a mission to establish the world’s largest free-trade area. Thus, making connecting the various fragmented markets is important and necessary.

Here is a list of four major transportation projects that will achieve this goal.

1.    West Africa Regional Rail Integration

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  » more The Lagos end of the project has begun since 2010  (Haulage Report Now) 

The West Africa Regional Rail Integration project is aimed at connecting isolated areas in the region to urban areas and market. The project is a two part rail network development.

One is to connect Bamako in Mali to its Southern border, Cote D'Ivoire, Burkina Faso, Niger and the Benin Republic. While another one is coming from Lagos connecting the Benin to Cote DÍviore.

The estimated cost of the project was pinned at $1.9 billion, and construction has begun in 2015 with the Benin-Niger railway extension and Lagos.

2.    The Trans-African Highway

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  » more The Trans-African Highway is expected to connect all parts of the continent.  (AU) 

The Trans-African Highway network is a transcontinental road project developed by the African Union and other regional international agencies - United Nations Economic Commission for Africa (UNECA) and the African Development Bank (ADB).

The 56,683 km road project is aimed at promoting trade and alleviating poverty in Africa. At completion, it is expected to transverse all countries in the continent except Burundi, Eritrea, Somalia, Equatorial Guinea (Rio Muni), Lesotho, Malawi, Rwanda, South Sudan, and Swaziland.

3.    The Ethiopia-Djibouti Rail Link

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  » more The rail network will connect the two countries and enhance trade.  (Ethiopia Online) 

The Ethiopia-Djibouti Rail Link is a 756-km stretch linking Addis Ababa and the Red Sea state of Djibouti. It will begin operation in October 2017.

The $3.4bn (£2.7bn) Ethio-Djibouti rail project was kick-started in 2016 with China’s EXIM Bank providing about 70% of the funding.

4.    Bagamoyo Port

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  Bagamoyo Port, Tanzania.  (IHS Fairplay) 

The Bagamoyo Port is a proposed port to be constructed in Bagamoyo, Tanzania. Upon completion, it would be the largest in Sub-Saharan Africa.

The first phase of the $11 Billion project is expected to be completed by 2017. And by 2030, Bagamoyo port will handle 20 million containers a year.