Malaysian Airlines said it will buy 25 Boeing 737 MAX 8s and has taken an option for another 25 jets in a deal worth up to $5.5 billion.
The new jets will reduce the airline’s operating costs and offer more route options due to their longer range capabilities, new CEO Peter Bellew said.
They will go toward replacing some of the airline’s 56 Boeing 737-800s.
It is the first aircraft purchase since the airline underwent a complete restructuring after suffering two damaging plane accidents in 2014.
It is also the first major announcement by Bellew, who officially took over as CEO from Christoph Mueller earlier this month.
Up until now the airline had been keen to offload planes after it cut most of its money losing long haul routes.
Bellew told the media he was upbeat the company would break even by 2018.
The new planes will eventually bring down costs by 40%, he said.
