Malaysia Airlines looking to buy 35 wide-bodied planes

Malaysia Airlines plans to buy 35 wide-bodied planes over the next year as part of a fleet restructuring to rebuild its premium business as it seeks to return to profitability by 2018, its CEO said Wednesday. Peter Bellew said there is a mismatch at the moment, with 70% of the airline's current fleet of 69 planes comprising single-aisle, narrow-bodied aircraft for short- and medium-haul routes, making it appear more like a low-cost carrier. He said the airline expects to increase its fleet size to 80 planes by 2022, of which 45% will be wide-bodied aircraft. Bellew said wide-bodied planes are cost efficient for busy regional routes, provide higher revenue opportunity in terms of cargo and seats, and allow flexibility for the carrier to return to long-haul routes. The airline axed all long-haul routes except to London under a $1.5b restructuring in 2014 that included axing 6,000 jobs. Malaysia Airlines earlier this month inked a deal to buy eight Boeing wide-bodied 787-9 Dreamliners and eight single-aisle 737 MAX jets. Some critics however, said the loss-making carrier shouldn't be purchasing new big planes at a time when it is still in the red. Bellew defended the plane purchases. He said no new funding would be required because the wide-bodied planes will mostly replace narrow-bodied ones that will retire over the next few years. He said the airline plans to arrange for a sale and lease back arrangement for new planes that will cut cost and make it financially more competitive.<br/>