Seabury Securities Advises Malaysia Airlines in A330neo Acquisition

Airbus A330-900neo in the Malaysia Airlines livery following its order announcement with Airbus. Photo Credit: Airbus
Airbus A330-900neo in the Malaysia Airlines livery. Photo Credit: Airbus

LONDON – On August, 23 Seabury Securities revealed that it was responsible for advising Malaysia Aviation Group, the parent company of Malaysia Airlines, in a purchase and lease deal for Airbus A330-900neo aircraft. Seabury secured a prestigious role in the advising fleet and financial direction of the airline in the acquisition and financing process of the aircraft. 

The initial announcement of the proposed acquisition was reported by AviationSource recently, when it was first announced by aircraft manufacturer Airbus.

A330neo purchase & lease

The acquisition details cover 10 A330neos which will be purchased directly from Airbus on a back-to-back sale and leaseback arrangement with Avolon. The remaining 10 aircraft are to be leased directly from Avolon. The agreements also include 20 A330neo purchase rights.

These options will provide flexibility for the Malaysia Aviation Group to be able to realise further potential and growth, and will be able to increase its fleet accordingly and in a timely way. 

Alexis Fekete, Seabury Securities’ Managing Director stated with optimism: “We are proud to have supported MAG in this very competitive selection process. We believe the comprehensive solution brought by Airbus, Rolls-Royce, and Avolon offers a cost-effective replacement of the current A330ceo fleet, which will lay a solid foundation for the airline’s future regional operations.”

Andy Cronin, Avolon CEO Designate, commented: “Today’s announcement builds on our longstanding relationships with industry leaders such as MAG, Airbus and Rolls-Royce, and we are delighted to partner with them to deliver a unique portfolio solution that will support MAG’s operations and business growth.”

“As the Asian aviation market continues to emerge from the pandemic, this A330neo transaction will help MAG renew its fleet and position them to capitalise on market recovery.”

“The enhanced fuel efficiency and performance, as well as the unit cost improvements of the A330neo compared to older generation aircraft, will allow MAG to meet the growing demand for air travel in the region – further strengthening their position as one of the leading carriers of choice in the Asia Pacific market.”

“As previously disclosed, we are experiencing a rapid recovery in demand for our order book slots for both our single and twin-aisle new technology aircraft, and we are delighted to partner with MAG on this milestone transaction.”

Izham Ismail, Group Chief Executive Officer of Malaysia Aviation Group, said: “After an extensive technical evaluation and a very competitive process, in which Seabury has played an instrumental role, we are delighted to have reached a strategic agreement with our partners on the renewal of our widebody fleet through the acquisition of these A330neos.”

“The innovative, cost-effective, successful tripartite approach offers a holistic solution to fleet owners that is financially viable for MAG as we secure a lower and stable cost base with an assurance of support financing.”

About Malaysia Airlines

Malaysia Airlines is the national flag carrier of Malaysia and has a fleet of 81 aircraft, comprising mainly the regional workhorse of the Boeing 737 and the wide-body Airbus A330, and a handful of Airbus A350 for the Kuala-Lumpur to London route and selected destinations in Australia and Japan.

The airline is based out of Kuala Lumpur International Airport and flies to 64 destinations around Asia, Oceania, the Middle East and within the country. Malaysia Airlines have been on a patchy road since 2014, after losing two Boeing 777s. The airline now is making an effort to reconcile its past and re-emerge as a strong national airline. 

About Seabury Securities 

Seabury Capital Group operates a series of consulting disciplines, ranging from, finance, investment, banking, technology, and software companies with a strong focus on aviation and aerospace & defence. The company was established in 1995 and has been operating under the founder John E. Luth.

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