Malaysia Airlines to Buy 36 ATR Turboprop Planes

Malaysia Airlines on Tuesday said it will buy 36 new ATR turboprop aircraft for 3.0 billion ringgit ($916 million) as it looks to boost profits be further expanding its regional and domestic networks.

Of the 36 ATR-72-600 planes, the carrier said 20 will go to low-cost subsidiary Firefly, which is fast expanding its lucrative routes, while 16 are for MASwings, another low-cost carrier that flies to Sarawak and Sabah on Borneo island.

The purchase comes after struggling flag carrier Malaysia Airlines in November said it had swung back to a profit, ending six straight quarterly losses after slashing unprofitable routes to cut costs.

Malaysia Airlines group CEO Ahmed Jauhari Yahya said Firefly is expected to rapidly expand within the next five years thanks to growing demand in Asia.

"The additional aircraft will be utilized to continue growing Firefly's network and providing customers with more travel options," said Ahmed Jauhari, who signed the deal with Filippo Bagnato, chief executive of French-Italian firm ATR.

The aircraft are slated for delivery from the end of the second quarter of 2013.

Launched in April 2007, Firefly provides connections to various points within Malaysia, Thailand, Singapore and Indonesia's Sumatra. It currently has 12 ATR-72-500 aircraft while MASwings operates 10 similar aircraft.

Asian airlines are ramping up purchases of aircraft as they look to tap growing demand for travel among the region's expanding middle class.

Earlier this month Malaysia's AirAsia, the region's top budget carrier, ordered 100 Airbus A320 aircraft with a catalogue value of $9.3 billion, including 64 future A320 fuel-efficient Neo models as it looks to expand services.

Ignatius Ong, Firefly's CEO said the additions to its fleet was more fueled efficient and will have the latest cockpit technology similar to Airbus's A380 superjumbo.

"The turboprop is also reputed to be one of the most fuel efficient aircraft in existence, hence resulting in lower carbon emissions.

"The ATR is also superior in terms of the aircraft technological dynamics and its excellent economics for short hops of our network," he added.

The chief designer of the aircraft cabin is Italian designer Giugiaro whose work is seen in many luxury supercars such as Lamborghini and Maserati, Firefly said.