Malaysia Aviation Group (MAG), the parent company of Malaysia Airlines, is currently in discussions with Boeing to potentially acquire new aircraft delivery slots that might become available due to the escalating trade conflict between the United States and China.
Izham Ismail, Managing Director of MAG, confirmed to Malaysian state news outlet Bernama that the company sees the ongoing tariff war as an opportunity to accelerate aircraft deliveries originally earmarked for Chinese airlines.
On April 15, 2025, Bloomberg reported that Beijing instructed its airlines to halt all Boeing aircraft deliveries, alongside ceasing purchases of aviation-related equipment from US companies. This directive affects major carriers, including Air China, China Eastern, and China Southern, which have collectively ordered 179 Boeing aircraft for delivery between 2025 and 2027.
China’s decision is a direct response to recent U.S. tariffs of up to 145% on Chinese goods. In retaliation, Beijing imposed tariffs of 125% on U.S. imports, significantly impacting the economics of US-manufactured aircraft for Chinese airlines.
At least two Boeing 737 MAX aircraft have since been observed leaving the Zhoushan completion center, a facility typically used by Boeing for final preparations before handing planes over to Chinese carriers.
“MAG is in conversation with Boeing about whether we can take over those slots,” Ismail stated. He noted this potential acquisition would enable MAG to secure aircraft earlier than previously planned, amidst global supply chain disruptions, regulatory challenges, and labor disputes that have delayed Boeing aircraft deliveries.
MAG, owned by Malaysia’s sovereign wealth fund Khazanah Nasional, aims to expand its narrow-body fleet significantly by 2030.
The airline recently committed to purchasing 18 Boeing 737 MAX 8 and 12 Boeing 737 MAX 10 aircraft, along with options for an additional 30 jets. Additionally, MAG has an ongoing arrangement to lease 25 Boeing 737 MAX jets from Air Lease Corp between 2023 and 2026.
3 comments
Dictators are free to shoot themselves in the foot the foot. This is a spiteful but not well considered action on China’s part.
China forced their own foot in a few of their own orifices with their latest tactics, but that’s for them to resolve now.
Anyone smart enough to take up their slack right away will be advancing themselves and Southeast Asian market expansion away from Mainland China in the next year or two.
China is going to be in turmoil if they cannot get, or choose not to get parts, components, and support from the US, and it will affect the world in the short term.
For sure there is room for another big player such as COMAC in the commercial aviation field. Advances happen with increased competition, and also knowing when some markets or product lines should be reduced, eliminated, or modified to make room for newer, better, higher, etc.
The opportunistic and oppressive Chinese government policies will hopefully be the end of their communist rule. The people of China deserve better, especially the hundreds of millions still living in rural Third World conditions.