Malindo Air Secures Financing To Buy 27 Boeing 737-900ER Aircraft (US Export-Import Bank)

PUTRAJAYA, March 7 (Bernama) -- Malindo Air, Malaysia's first hybrid airline, has secured US$1.1 billion financing from the US Export-Import Bank (US EXIM Bank) to buy 27 Boeing 737-900ER aircraft.

Source from (Bernama): http://www.bernama.com/bernama/v7/bu/newsbusiness.php?id=932786
Published: March 08, 2013

Chief Executive Officer Chandran Rama Muthy said the airline will buy the aircraft in stages until next year.

"In the first year of operations, we plan to buy 12 aircraft," he told reporters after the signing of an agreement between Malindo Air and its new management staff.

Chandran said Malindo Air's maiden flight to Kota Kinabalu on March 22 will be followed by another to Kuching the next day.

To mark its presence, Malindo Air is offering an all-inclusive fare as low as RM38 to Kuching and RM68 to Kota Kinabalu.

This promo price will last until September or October, said Chandran.

He said Malindo Air will have four flights daily to Kuching and thrice daily to Kota Kinabalu.

"This year, we are aiming for an average load factor of around 85-90 per cent, while offering 12 seats in business class and 168 seats for economy," he added.

Chandran said the airline will announce more domestic routes in the near term.

"We have all the domestic traffic rights and with 12 aircraft, can fly domestic as well as some Asean routes, alongside India and China," he added.

"We are expecting to break even or chalk up a small profit by this year," he added.

He said for the first time in Malaysia, Malindo Air will introduce a hybrid service model, comprising business class seats with a space of 45 inches and economy at 32 inches.

Besides that, he said on board facilities include a personal TV for in-flight entertainment, full meal service in business class and light snacks in economy.

"As for WiFi Internet service, we expect to offer it in June this year," he added.

Other value add-ons that Malindo Air offers is free baggage allowance of 30kg for business class travellers and 15kg in economy.

At the same event, Transport Minister Datuk Seri Kong Cho Ha handed over the Air Operator Certificate (AOC) to Malindo Air.

Kong said Malindo Air's emergence in Malaysia's low cost carrier market, will provide travel convenience for and improve connectivity in the region, while increasing competitiveness of the KLIA2.

Malindo Air is 49 per cent-owned by Lion Group, with Malaysia's National Aerospace and Defense Industries (NADI), holding a 51 per cent stake.

To be initially based at the Kuala Lumpur International Airport, it will be the first airline to operate the brand new B737-900ER in Malaysia.

The new airline will induct 100 aircraft over the next 10 years and initially serve routes with distances of up to five hours from Kuala Lumpur.

-- BERNAMA