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Travel Radar - Aviation News > News > Aviation > Aircraft > Malaysia Aviation Group Bets on Boeing as US-China Trade Row Reshapes Aircraft Demand
AircraftAirline EconomicsAviation

Malaysia Aviation Group Bets on Boeing as US-China Trade Row Reshapes Aircraft Demand

Finlay Shaw
Last updated: 22 April 2025 09:46
By Finlay Shaw 4 Min Read
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Malaysia airline aircraft tails.
Trade Turmoil Drives MAG Toward Boeing © Malaysia Airlines
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Malaysia Aviation Group (MAG), the parent company of national carrier Malaysia Airlines, is in active discussions with Boeing to potentially secure new aircraft delivery slots that may become available due to intensifying trade tensions between the United States and China.

Malaysia Airlines aircraft
Malaysia Airlines aims to secure a deal with Boeing after airlines within the China region are forced to drop the manufacturer © Jeffry S

MAG Eyes Boeing as Trade Tensions Shift Demand

Malaysia Aviation Group’s Managing Director, Captain Izham Ismail, released a statement to a state news agency Bernama that the company views the ongoing tariff conflict as a strategic opportunity to accelerate aircraft deliveries originally designated for Chinese carriers.

China’s decision to halt Boeing aircraft handovers follows the United States’ recent imposition of tariffs of up to 145% on Chinese goods. In retaliation, Beijing has introduced tariffs of 125% on American imports—a move that significantly alters the cost dynamics of US-built aircraft for Chinese airlines. This led to most Chinese airlines temporarily stopping any orders with the manufacturers, leaving them uncertain about the future.

At least two Boeing 737 MAX aircraft have since been observed departing Boeing’s Zhoushan completion and delivery center—typically the final stop before Chinese carriers receive their aircraft—indicating a potential reallocation of these jets.

Ismail confirmed through his statement that:

“MAG is in conversation with Boeing about whether we can take over those slots,”

He noted that acquiring the affected delivery positions could enable the group to bring forward aircraft arrivals, helping offset ongoing global supply chain constraints, regulatory delays, and labour disputes that continue to affect Boeing’s production output.

The Chinese carriers most affected by the delivery freeze—Air China, China Eastern, and China Southern—have a combined 179 Boeing aircraft on order, originally planned for delivery between 2025 and 2027. These aircraft will need to go elsewhere assuming they are already in the production process and MAG is happy to acquire these in line with their ambitious target to significantly expand its narrow-body fleet by 2030 as part of its broader growth and network optimisation strategy.

Malaysia Airlines aircraft
MAG swoops in at the perfect time to take advantage of Boeing amidst the trade war © Jeffry S

Who are Malaysia Airlines?

Malaysia Airlines is Malaysia’s national carrier and a member of the Oneworld airline alliance.

Headquartered at Kuala Lumpur International Airport (KLIA), the airline operates a modern fleet across an extensive network spanning Asia, Australia, the Middle East, and the UK.

Known for its signature Malaysian hospitality, the airline is a key component of Malaysia Aviation Group (MAG), which is wholly owned by the country’s sovereign wealth fund, Khazanah Nasional. Malaysia Airlines continues to play a strategic role in connecting Malaysia to the world while pursuing a path of transformation and fleet modernisation.

Malaysia Airlines Staff
The airline continues to grow and serve passengers since their humble beginning in 1947 © Malaysia Airlines

What do you think about this move by MAG? Let us know below!

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Finlay Shaw
By Finlay Shaw
Aviation Reporter and Editor - With a passion for exploring the skies through the lens of storytelling. Currently a student of Film and Broadcast Production, Finlay intends to bring a unique blend of technical expertise and creative insight to writing.
Previous Article Aircraft lining up for take off. Inside the FAA’s Push to Modernise NOTAMs by September
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