Core Viewpoint - Malaysia Airlines is evaluating various aircraft models to support its growth, including the Chinese-made C919, with a decision expected around 2026 [2][3]. Group 1: Aircraft Fleet Expansion - Malaysia Airlines plans to increase its fleet from 86 to 116 aircraft by 2035 as part of a long-term development plan [2]. - The airline is particularly assessing narrow-body aircraft, with the C919 being a potential candidate [2]. Group 2: Supply Chain Challenges - Global airlines, including Malaysia Airlines, are facing delivery delays of 3 to 6 months for all aircraft models due to supply chain issues [3]. - The International Air Transport Association (IATA) reports a record backlog of over 17,000 commercial aircraft orders, significantly higher than the average of about 13,000 from 2010 to 2019 [3]. Group 3: Engine Maintenance Delays - Engine overhauls, which typically take 55 to 60 days, are now taking up to a year, particularly affecting Rolls-Royce and Pratt & Whitney engines [4]. - The recovery of normal delivery times for aircraft and engines is expected to take 3 to 5 years due to geopolitical factors and labor shortages [4]. Group 4: Route Recovery and Passenger Demand - Despite delivery delays, Malaysia Airlines has seen a 41% increase in bookings for the Chinese market during the National Day holiday, with a seat occupancy rate of around 82% [5]. - The airline is adjusting its route planning to increase capacity on China routes, aiming to restore operations to pre-pandemic levels [4][5].

Core Insights - A noticeable trend post-pandemic is the shift in international traveler demand towards high-end travel [5] - Malaysia Airlines is evaluating various aircraft models to support group growth, including the Chinese C919 model [1][2] Aircraft Fleet Expansion - Malaysia Airlines plans to increase its fleet from 86 to 116 aircraft by 2035 [2] - The decision regarding the C919 model is expected around 2026, with considerations on innovation, safety, certification, operational feasibility, and cost [2][4] Supply Chain Challenges - Global airlines, including Malaysia Airlines, are facing delivery delays of 3 to 6 months due to supply chain issues [4] - The backlog of commercial aircraft orders has reached a historic high of over 17,000, significantly above the average of 13,000 from 2010 to 2019 [4] Impact on Operations - The delays in aircraft and engine deliveries are affecting the recovery speed of Malaysia Airlines' routes to China, which are currently operating at 70% of pre-pandemic capacity [4] - Malaysia Airlines plans to increase capacity on China routes next year, contingent on timely aircraft deliveries [4] Passenger Demand Trends - Despite operational challenges, Malaysia Airlines has seen a 41% increase in bookings for the Chinese market during the recent National Day holiday [5] - The business class occupancy rate has reached 90%, driven by a growing demand for high-end travel [5]

Core Points - Boeing has delayed the delivery of the 777X aircraft from early 2026 to 2027, potentially resulting in losses of $1 billion to $4 billion [2] - The 777X program, initiated in 2013, is now six years behind the original delivery schedule [2] - Boeing's CEO, David Calhoun, indicated that the certification process is behind schedule due to "a lot of work" still pending, but did not mention any new technical issues [2] - A strike by approximately 3,200 workers in Boeing's military aircraft division, which began on August 4, may continue for several weeks or even months, prompting the company to implement a second phase of crisis response [2] - Last year, a strike involving over 30,000 employees in Boeing's commercial division led to more than seven weeks of factory shutdowns in the Pacific Northwest [3]