This is another article that I originally wanted to put on my aviation blog, but instead posted on here.
MAS in RM2b engine deal
By B.K. SIDHU
bksidhu@thestar.com.my
Read more at biz.thestar.com.my
It is expected to ink pact with Pratt & Whitney soon
PETALING JAYA: Malaysia Airlines (MAS) has picked Pratt & Whitney to supply 34 engines to power 17 of its new aircraft in a deal worth US$680mil (RM2.2bil).
The national carrier has yet to ink the agreement with Pratt & Whitney as both parties are still hammering out the finer details of the agreement. The signing is expected to be soon.
The US$680mil was part of the list price of US$4.5bil that MAS would pay to buy 25 A330-300s and four A330-200Fs, the airline said in a statement yesterday.
The order was placed in December last year. The estimated list price as stated in reports then was US$5bil (at an exchange rate of RM3.44 to US$1) for the entire order including the engines. Yesterday’s statement showed a US$500mil reduction.
The US$680mil engine deal is part of the list price of US$4.5bil that MAS would pay to buy 25 A330-300s and four A330-200Fs.
MAS explained that there were several reasons for this, such as the strengthening of the ringgit against the US dollar and the price of the freighter being lower compared with the passenger aircraft.
However, the US$4.5bil may not be the final amount that MAS will pay for the orders; it is likely to be a negotiated price which MAS is not willing to reveal at this juncture.
The A330 aircraft deliveries will be from 2011 to 2015. The 34 engines are for 15 passenger aircraft and two freighters. These aircraft will be used to serve the South Asia, China, North Asia and the Middle East markets.
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