Rahman Hussin, co-founder of transport think tank My Mobility Vision, said the modernisation of MAG’s fleet, comprising both national carrier Malaysia Airlines and Firefly, was about its survival, not just upgrading.
Rahman said the Southeast Asian aviation market was expanding at a rapid pace, projected to more than triple in 20 years, but MAG’s current fleet trailed its competitors by about 15 years.
“Choosing fuel-efficient, extended-range aircraft like the Boeing 737-8/10 isn’t just prudent; it’s critical for tapping into emerging lucrative markets such as Ahmedabad, India, and Chengdu, China.
“Any hesitation now risks significant loss in market relevance and competitiveness,” he told FMT.
Rahman admitted that the ethical dimensions to Boeing cannot be ignored, saying Boycott, Divestment, Sanctions (BDS) Malaysia’s concerns presented a genuine dilemma.
However, he maintained that “ethics must be balanced with economic realism”, and warned of ripple effects from totally tearing up all deals with Boeing.
“While morally appealing, it could severely impact local economies. Boeing’s commercial aircraft division currently supports 43 Malaysian suppliers and over 1,200 high-skilled local jobs.
“Ethical leadership means applying calculated pressure to multinational corporations without resorting to performative actions that could unintentionally harm domestic livelihoods. Navigating complex issues demands more guts than grandstanding,” he added.
Aviation expert Germal Singh Khera asked what other alternatives MAG would have if it were to scrap the Boeing deal and not opt for Airbus, which has also been accused of profiting from the Gaza genocide.
Germal said an airline must consider its fleet integration and delivery issues when making such business decisions, adding that cancelling the Boeing contract at this juncture would cause problems for MAG.
“It may be a dicey issue for MAG, taking into consideration their need for additional aircraft both for refleeting and expansion purposes. It will be a tough call to make weighing commercial versus political considerations.
“Another important factor for MAG and the government to consider would be the possible loss of deposit payments and financial penalties for cancellation. It could substantially impact MAG financially,” he said.
Last month, Prime Minister Anwar Ibrahim announced that MAG had placed an order for 18 Boeing 737-8 aircraft and 12 Boeing 737-10s, with the planes to be delivered by 2030.
MAG also has the option of acquiring an additional 30 planes from Boeing, with the price of these aircraft to be locked with the current contract with minimal adjustments.
A group of NGOs led by BDS Malaysia then urged Putrajaya to cancel the deal with Boeing and halt all engagements with the company over its alleged complicity in Israel’s genocide of Palestinians.
Rahman said a realistic way forward would be to renegotiate the deal firmly with Boeing, particularly to urge the company to make tangible commitments to humanitarian or infrastructure projects in conflict zones.
He also said MAG must diversify its fleet by placing orders between Boeing, Airbus or Comac, the Commercial Aircraft Corporation of China, which would boost its resilience while reflecting Malaysia’s principled stand.
“Finally, reinvesting savings from fuel-efficient fleets into strengthening Malaysia’s own aviation maintenance, repair, and overhaul capabilities would further reinforce local economies and industry resilience,” he said.
Rahman also said MAG must maintain vigilance with Boeing given its past industry missteps, namely involving its 737 MAX aircraft.