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Malaysia Airline is citing aircraft delivery delays, spare parts shortages and workforce attrition as contributing to its decision to temporarily cut capacity.
In a statement released Aug. 29, the carrier said it will reduce capacity by 20%, which will affect domestic services and international routes to Southeast Asia, North Asia, Australasia, China, South Asia and the Middle East. This includes flights by the parent carrier and subsidiaries Firefly and Amal.
The carrier first announced on Aug. 24 that it planned to make flight cuts through December, although it did not give a capacity estimate at that time. The reductions are in response to a series of significant flight disruptions and delays.
The Malaysian government subsequently announced it would tighten scrutiny on Malaysia Airlines and revise the country’s aviation consumer protection code.
In its latest statement, the carrier said it has taken “proactive steps to reduce capacity with the objective of ensuring safe and reliable operations.”
Malaysia Airlines cited global supply chain problems that are causing delays in the production of spare parts by manufacturers. This has led to longer turnaround times for engine overhauls and repairs, resulting in engine shortages in the carrier’s fleet.
The carrier said its fleet planning has also been affected by delivery delays. It said it has so far only received four of the 13 Boeing 737 MAXs it was originally due to receive by the end of 2024. It was also due to take delivery of four Airbus A330neos this year, but now expects to receive three.
Malaysia Airlines said it has been affected by attrition in its engineering workforce, as new local and international MRO players have entered the Malaysian market.
“To address this, we are collaborating with partners to augment our manpower and increase our skilled engineering workforce, and we have improved remuneration packages to sustain a strong talent pipeline,” the carrier said. “Despite these challenges, [the group] has maintained the quality of its maintenance work ... both internally and externally, even with the associated high costs and financial impacts.”