Anthony Loke is Malaysia's Transport Minister - and he is yet to explain why Malaysian Airlines is buying again 30 Boeing planes. Malaysian Airline is a 100% Government Owned Company? Was Anthony Loke 'kept in the dark'?
WHY Buy, as it is wiser to LEASE was a point raised when before the Airlines purchased planes. A lease agreement may be better as it can be ended/varied with a Lease Agreement for NEWER planes. Lease agreements also mean that the company that leases will be responsible for repairs, maintenance and even providing a 'newer' plane, when the current plane ages or haves problems.
If you BUY, then you will be stuck with planes as it ages - and I do not think there is a market for old planes.
Malaysia Aviation Group (MAG) is wholly owned by the Malaysian government through its sovereign wealth fund, Khazanah Nasional. and Anwar Ibrahim, as Finance Minister, is in charge of Khazanah - so, it was ODD that Anwar refused to disclose the cost, citing MAG's policy - what nonsense?
“Within two years (2029 and 2030), we will get all 30 aeroplanes,” he [Prime Minister Anwar Ibrahim] told reporters.He declined to divulge the cost of the order, citing MAG’s official policy.
But, where is Anthony Loke, our Transport Minister - is he only responsible for busses, aerotrains, etc but aeroplanes?
Was he even consulted, or was he part of this decision making? Is it a PH decision? Is it a Cabinet decision? Or is Anwar acting on his own...???
When it comes to the Malaysian Airlines, we are all rather 'sensitive' considering the number of times Malaysia and Malaysians had to 'BAIL OUT'
In 2015,
Malaysia Airlines Berhad (MAB) took over the operations of the
previously loss-making Malaysia Airline System (MAS), becoming the new
legal entity and holding company for the airline - and ALL the employees of the airline were terminated, then the new MAB offered employment to whoever it pleased. [The LIFO(last in first out) principles were totally ignored by the the airlines. All were terminated by MAS, and the new 'MAB' just picked and chose who to offer employment - it was bad, because it was a GLC, nay a totally government owned company]
This also led to the DEATH of all in-house Trade Unions, and to date this 'new' MAS has prevented the formation of any Trade Unions...
Irresponsibility, the government also enacted that most draconian Act MALAYSIAN AIRLINE SYSTEM BERHAD (ADMINISTRATION) ACT 2015- that legally made the new MAB not liable for the debts of MAS, although the owners were the same, Khazanah or the government of Malaysia - and, this included workers
Malaysia Airlines Berhad shall not—
(a) be regarded as the successor, assignee or transferee or a successor employer to the Administered Companies;
(b) be liable for any obligation relating to any retirement plan or other post-employment benefit plans in respect of the employees or former employees of the Administered Companies or any predecessor of the Administered Companies that exists prior to the assumption of control or appointment; or
(c) be liable for any sum which is calculated by reference to a period of time prior to the Malaysia Airlines Berhad becoming the employer of the person in question.
Then, in 2020, the government tells us that RM26 Billion have already been pumped in (BAIL OUT], and a RM16 Billion in liabilities still remain.
A total of RM28 billion has been injected into Malaysia Airlines Bhd by Khazanah Nasional so far, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz. Tengku Zafrul said there were plans to restructure the liabilities of Malaysia Aviation Group Bhd (MAGB), the parent group of the airline which is estimated to be RM16 billion.NST, 26/11/2020
How much more did we pump in for the Malaysian Airlines?
And now again, BUYING new planes - worse from Boeing
In line with recent calls from the Human Rights Council and the independent UN experts to States to cease the sale, transfer and diversion of arms, munitions and other military equipment to Israel, arms manufacturers supplying Israel – including BAE Systems, Boeing, Caterpillar, General Dynamics, Lockheed Martin, Northrop Grumman, Oshkosh, Rheinmetall AG, Rolls-Royce Power Systems, RTX, and ThyssenKrupp – should also end transfers, even if they are executed under existing export licenses. “These companies, by sending weapons, parts, components, and ammunition to Israeli forces, risk being complicit in serious violations of international human rights and international humanitarian laws,” the experts said....Financial institutions investing in these arms companies are also called to account. Investors such as Alfried Krupp von Bohlen und Halbach-Stiftung, Amundi Asset Management, Bank of America, BlackRock, Capital Group,..XIV. 29 UN human rights experts stress States and companies must end arms transfers to Israel immediately, name companies involved, UN Website
But, Malaysia ignored and proceeded with the MAHB deal with Blackrock, and now BOEING - how committed is PM Anwar Ibrahim and the Malaysian government to the plight, injustice and killings of Palestinians.
BlackRock has filed a 13G/A form with the SEC disclosing ownership of 33.27MM shares of Boeing Co (BA). This represents 5.6% of the company. Nasdaq, 7/2/2023
Why waste MORE Money in the Malaysian Airlines that has a 'bad track record' - worse by buying planes from BOEING?
Should we demand for the resignation of Anthony Loke as Minister of Transport - he cannot avoid responsibility for the decision to purchase 30 new planes... If Anthony Loke was not involved or consulted by the PM, then would it not be best for him to RESIGN as Minister in PROTEST?
We demand Anthony Loke to EXPLAIN this matter - that also is a U-turn of previous PH position, and an action against Malaysians' position on Palestine - maybe not Anwar's or PH's position?????
MAG's purchase of new Boeing aircraft strengthens Malaysia's position in global aviation industry — Zafrul
KUALA LUMPUR (March 22): Malaysia Aviation Group’s (MAG) purchase of new Boeing aircraft is an investment which will strengthen Malaysia’s position as a key player in the global aviation industry.
Minister of Investment, Trade and Industry Tengku Datuk Seri Zafrul Abdul Aziz said the acquisition also supports Boeing Composites Malaysia (BCM), a manufacturer of Boeing aircraft structures in Malaysia which currently employs 1,000 Malaysians.
“This aligns with Malaysia’s aspiration to become a regional aerospace hub by 2030,” he said in a social media post on Saturday.
On Friday, MAG announced the acquisition of 30 new aircraft directly from Boeing as part of its fleet modernisation strategy.
The order includes 18 Boeing 737-8 and 12 Boeing 737-10 aircraft powered by the CFM LEAP-1B engines, with the option for 30 more 737 aircraft.
MAG Group managing director Datuk Captain Izham Ismail said the 737-8 and 737-10 selection reflects a careful evaluation of its long-term growth strategy, ensuring the airline has the right aircraft to meet evolving market demands - Edge, 22/3/2025
Another U-turn: 8 years after slamming Najib over Boeing deal, only silence from PH leaders
One DAP leader who criticised the 2017 deal says times have changed.
The government's move to order 30 Boeing aircraft for the use of national carrier Malaysia Airlines has been seen as yet another U-turn by Prime Minister Anwar Ibrahim, drawing comparisons with the protests raised by his Pakatan Harapan (PH) coalition in 2017 when then leader Najib Razak did the same.
Najib, in a meeting with US President Donald Trump, had announced the purchase of 25 Boeing planes, sparking criticism by PH leaders.
He also announced billions in US investments by the Employees Provident Fund and Khazanah Nasional.
Economy Minister Rafizi Ramli had then accused Najib of mortgaging the country's interests by boosting the US economy even as Malaysians struggled financially back home.
"I almost vomited seeing Najib degrade the dignity of Malaysians by fawning over president Trump when he said, 'Number one, we want to help you in terms of strengthening the US economy. I come with three specific proposals'," wrote Rafizi, who also mocked Najib for "appearing to bring tribute".
Other PH leaders had also questioned the decision, saying it benefitted US company at a time when America was aiding the Israeli army against the Palestinians.
Among them was former DAP vice-chairman Tengku Zulpuri Shah Raja Puji, who urged Najib to take a stronger stance on the Palestinian issue and cancel the deal with Boeing.
"The prime minister (Najib) not only needs to state his position, he also needs to be firm by withdrawing his earlier commitment to the US president to strengthen the country's economy," he said.
He added that the Malaysian investments meant that the people's money was involved in "every act of destruction and death that occurred in Jerusalem".
When contacted, Zulpuri stood by his remarks, saying his comments were in line with the situation in 2017 and that the times and environment had since changed.
He said the US was currently suffering greater losses due to the conflict in Gaza, and that the latest purchase of Boeing planes was irrelevant.
"It's 2025 now. This deal doesn't help the US much in terms of the economy and its foreign policy towards Israel," he told MalaysiaNow.
Anwar announced the purchase of 30 Boeing planes on March 21. The order comprised 18 Boeing 737-8 aircraft and 12 Boeing 737-10 planes for the use of Malaysia Aviation Group, the company which owns Malaysia Airlines.
Zulpuri said Malaysia, as a neutral country, needed to strengthen its economic position with a strategic ally like the US.
He then repeated a frequent justification made by PH leaders when accused of making U-turns.
"The important thing is, we are now in government and we have joined hands with Barisan Nasional (BN) and other parties.
"All policy decisions are made collectively by the Cabinet. If there are objections from any component of the unity government, of course the prime minister will not act," he said.
MalaysiaNow has attempted to contact several other PH leaders who criticised the 2017 meeting between Najib and Trump, but received no response.
These leaders include Rais Hussin, a former Bersatu member who defected to PKR and now heads government agency Malaysian Research Accelerator for Technology and Innovation, former DAP publicity secretary Tony Pua, PKR's Bayan Baru PK Sim Tze Tzin, and Health Minister Dzulkefly Ahmad.
The four had held a press conference not long after Najib's meeting in Washington, wearing clothing referencing Trump and holding signs with Trump's campaign slogan, "Make America Great Again".
One of Dzulkefly's officers said the minister was bound by the Cabinet code of ethics not to comment on issues related to other ministries.
"Definitely, the minister is bound by the ministerial code not to comment on issues that are under another ministry's purview," he said.
Isham
Jalil, a former Umno Supreme Council member, said Anwar's latest move
showed that PH was out of ideas and only copying from BN.
"They are copying what they once criticised. Before this, they slammed our policies but now that they are in government, they have no new ideas.
"When they were in the opposition, they could say anything they wanted. But now that they're part of the government, they can't use rhetoric anymore," he said.
Eric See-To, a Najib loyalist who continues to defend the former prime minister's policies, also mocked the government's Boeing deal.
"They were the ones who accused Najib of all sorts of things when he announced that Malaysia Airlines had bought 16 Boeing aircraft – they said there was no need, and that it was a betrayal of the Palestinian cause.
"At least Najib got to meet with Trump. But (with Anwar), even his phone call goes unanswered," said See-To who comments under the Facebook account of Lim Sian See.
Critics previously asked why Anwar had not spoken to Trump after his return to the top office this year. In contrast, Trump had communicated with the leaders of neighbouring countries such as Singapore, Indonesia, and Thailand.
Criticism was also levelled at Nazri Aziz, Malaysia's former ambassador to the US, for failing to arrange the call.
Gerakan president Dominic Lau asked if Anwar's government had bought the planes to win over Trump.
"I hope that this deal with Boeing is truly for Malaysia Airlines' future, not in exchange for a conversation with Trump," he said.
Lau said that the deal had come at a time of economic uncertainty, and a decline in Malaysia Airlines' performance.
"A big order like this should be based on real needs, not a hidden agenda to be kept secret from the people," he said.
Meanwhile, about two dozen organisation including the local chapter of anti-Israel movement Boycott, Divestment, Sanctions (BDS Malaysia) have hit out at the government's Boeing deal.
They said the United Nations Human Rights Council had named Boeing as one of the companies involved in supplying Israel with weapons.
"Malaysia cannot claim to stand with Palestine while enriching a corporation that arms its oppressors.
"By choosing to do business with Boeing, Malaysia is indirectly subsidising a company that profits from apartheid, mass murder and war crimes, which is morally indefensible and a betrayal of Malaysia's professed solidarity with Palestine," they said in a statement. - Malaysia Now, 28/3/2025
MAG places order for 30 Boeing 737s, delivery by 2030
Prime Minister Anwar Ibrahim said Malaysia Aviation Group has the option to procure an additional 30 aircraft from Boeing.
Anwar said the 30 planes comprise 18 Boeing 737-8 aircraft and 12 Boeing 737-10s.
MAG has the option to procure an additional 30 aircraft from Boeing, he added.
MAG operates Firefly and national carrier Malaysia Airlines Bhd.
Anwar said MAG’s order was a “significant” investment that reflected the company’s commitment to growth and resilience while enhancing Malaysia’s global connectivity.
“This milestone is not just about modernising the fleet but also fortifying Malaysia’s position as a key player in global aviation and strengthening our economic foundation in an increasingly competitive world.
“These aircraft will improve travel, incorporate modern technology, and enhance efficiency, while also creating jobs, driving tourism, and strengthening industries that thrive on a robust aviation sector.
“The ripple effect will be felt across our economy, creating new opportunities for businesses and individuals alike,” the prime minister said in announcing the aircraft order.
Later, MAG managing director Izham Ismail said the new batch of narrowbody aircraft – more commonly known as single-aisle aircraft – would be delivered in 2029 at the earliest.
“Within two years (2029 and 2030), we will get all 30 aeroplanes,” he told reporters.
He declined to divulge the cost of the order, citing MAG’s official policy.
He said the option for an order of 30 more planes in the contract with Boeing was to ensure that Malaysia is in step with the trajectory of the aviation market.
A decision on the further purchases will be based on market growth, he added.
“Aviation market growth in Asean in the next five years is projected to be around 5.6%. If we don’t invest in the fleet, we will be behind the curve.
“But if we order a new fleet now, it won’t be financially sustainable. However, the price of the additional order is locked with the current contract, with minimal adjustments,” he said.
Izham said this would ensure that Malaysia Airlines does not repeat the mistake it made last year in managing its ageing fleet. “The ordering of new planes must be well-timed, otherwise we will end up with what happened last year.”
In August 2024, MAG apologised over flight delays and cancellations involving both Malaysia Airlines and Firefly. The company said these disruptions were partly caused by technical issues and delayed aircraft deliveries.
Izham said MAG had an existing order of 25 Boeing 737-8 aircraft through a long-term lease, with 11 already delivered and the rest scheduled for delivery by 2027.
MAG is currently phasing out the older generation of Boeing 737-800s operated by Malaysia Airlines, as it aims for a newer fleet of 55 aeroplanes by 2030. - FMT, 21/3/2025
RM28 billion given to Malaysia Airlines so far
KUALA LUMPUR: A total of RM28 billion has been injected into Malaysia Airlines Bhd by Khazanah Nasional so far, said Finance Minister Tengku Datuk Seri Zafrul Tengku Abdul Aziz.
Tengku Zafrul said there were plans to restructure the liabilities of Malaysia Aviation Group Bhd (MAGB), the parent group of the airline which is estimated to be RM16 billion.
"As of Aug 31, MAGB's liquidity was RM366 million, in addition to the RM578 million allocated to it by Khazanah," he told the Dewan Rakyat in a written reply.
He said that the airline's earnings had been impacted by the Covid-19 pandemic, with 75 per cent of its aircraft grounded due to travel restrictions.
The government was negotiating with Khazanah to find a strategic solution for the aviation group and resolve its financial woes, added Tengku Zafrul.
He was responding to Ahmad Fadhli Shaari's (Pasir Mas-PAS) queries on whether the government would give the airline more funds to stay afloat.
Tengku Zafrul said the government had allocated RM50 billion via the Danajamin Prihatin Guarantee Scheme to companies impacted by the pandemic.
"The guarantee facility is for eligible companies operating in Malaysia in all sectors including airlines," he said.
MAGB has been in the red from inception. Its losses widened to RM1.3 billion in 2018 from RM1.2 billion in 2017.
MAB was established on Nov 7, 2014. It replaced the struggling Malaysian Airline System Bhd (MAS) as the national flag carrier on Sept 1, 2015, via a turnaround plan.
The 12-point turnaround plan entailed delisting MAS and transferring its operations, assets and liabilities to MAB. Its workforce was reduced by 30 per cent to 14,000.
Prior to the 2014 turnaround plan, MAS had received RM17.4 billion in several bailout attempts.
Khazanah has since injected RM6 billion into MAB.
MAB was slated to return to the black by 2017 but has yet to turn a profit.
In a separate parliamentary reply to Anthony Loke (PH-Seremban), Tengku Zafrul said that while the government was committed to help all who have been affected by the Covid-19 pandemic, he indicated it was unable to help "save" the airlines.
"For now the government is not involved in any plans to save any company including commercial flight companies, since the government has to ensure any aid is given especially from the financial aspect has a clear framework and objective to avoid discrimination to other companies also affected by this pandemic."
"Besides, financial assistance to any company will be considered as a bailout and will indirectly affect the performance of other companies that are competitors and who did not receive financial assistance from the government."
He said companies would have to work out their own recovery plans, and any proposal for the company's financial recovery was subject to consideration and approval by the board of directors and shareholders of the respective companies. - NST, 26/11/2020
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