MAS poised to order up to 55 narrowbodies

Malaysia Airlines (MAS) later today plans to announce an order for narrowbody aircraft and it is expected to be for Boeing 737-800s.

The national carrier has earlier said it is evaluating 737 next generation aircraft and Airbus A320s and would make a decision in this year's first half.

A source at MAS tells me that the airline will be making an announcement today on aircraft but it will wait until the Kuala Lumpur stock exchange closes.

The source was responding to reports in the Malaysian newspapers - quoting from unnamed sources - saying the airline plans to buy as many 55 737-800s with first deliveries to start in 2011.

It will announce the deal today, say the reports.

MAS currently operates 37 Boeing 737-400s on domestic and short-haul routes but these aircraft are around 16 years old.

This is too old considering its major competitor is AirAsia which operates new A320s.

AirAsia has said publicly that having new aircraft has proven a boon for its business because new aircraft are more reliable to operate and consume less fuel.

If MAS orders 737-800s, as expected, it will have to wait a few years for the aircraft to arrive from Boeing.

But it could speed up its aircraft fleet renewal by getting some 737-800s on lease sooner.