Malaysia Airlines orders 50 Boeing 737 MAX jets for 5.5 bln USD

Malaysia Airlines announced on Wednesday that it has agreed to buy 50 Boeing 737 MAX jets, known for their fuel efficiency, with 25 firm orders and the rights to purchase another 25.

The order for the jetliners, which includes the 737 MAX 8 and 737 MAX 9 aircraft, is valued at 5.5 billion U.S. dollars at current prices, though buyers typically get discounts. Deliveries will commence in 2019.

The deal comes as the Malaysian state-owned airliner is trying to get itself out from the two recent disasters in its history -- the disappearance of the flight MH370 and the shooting down of flight MH17.

"The deal is a game-changer for Malaysia Airlines with much lower costs and greater efficiency which we will pass on to our loyal customers with lower fares," said Peter Bellew, who only became Malaysia Airline's new chief executive officer early this month.

Malaysia Airlines currently operates 56 Boeing 737-800 aircraft, some of which will be replaced by the new planes, which can help the airliner reduce fuel consumption by 15 percent, according to Bellew.

Saying the new planes will help the airliner reach to markets in China, Australia and Japan, Bellew added that "Malaysia Airlines is now on a path to growth across the ASEAN region. This new aircraft order will set the stage for our continued recovery and success into the next decade." Endit