Malaysia Airlines closing in on order for Boeing 787 Dreamliners

Malaysia Airlines’ parent is said to be closing in on an order for Boeing 787 Dreamliners as the carrier seeks to renew its long-haul fleet, according to people familiar with the matter.

Malaysia Aviation Group is likely to place an order for about ten 787-10s, the people said, asking not to be identified because the discussions are confidential. Boeing edged out Airbus SE by offering earlier delivery slots starting in 2031, with GE Aviation offering better terms on the engines compared with Rolls-Royce Holdings, some of the people said.

The new 787s will replace the airline’s seven leased Airbus A350 jets while also providing room for future growth, the people said. Malaysia Airlines has been looking to replace the A350s due to high lease rentals, and the airline evaluated planes from both manufacturers for the order, the people said.

The deal also has political undertones because US president Donald Trump has tied Boeing orders to trade pacts he signed with various countries. Trump and Malaysian Prime Minister Anwar Ibrahim announced last year that the country would purchase 30 Boeing aircraft with options for 30 more.

Malaysia Aviation Group did not immediately respond to requests for a response. Boeing and Airbus declined to comment.

Malaysia Airlines has relied on Airbus for its widebody planes since 2016, using older A330s and newer A350s when it retired the Boeing 777 from service. The company ordered forty A330neos in recent years to replace its oldest jets, with 10 already now delivered among its roughly 90-strong fleet which includes fifty-seven 737 single-aisle jets.