KUALA LUMPUR: Airlines are in a tricky position to diversify their aircraft fleet as the Covid-19 pandemic has yet to show any sign of abating.
Former aviation development senior manager at Malaysian Aviation Commission (MAVCOM) Rosida Ismail said diversifying aircraft fleet may impose higher operational expenditure for airlines as operators need to maintain a bigger or more in-depth maintenance and repair programme, especially if it is done in house.
"Re-fleeting to match demand and to avoid operating on an over-capacity basis would be good options for airlines theoretically, but it can only be viable until the recovery of market post-pandemic," she told the New Straits Times (NST) recently.
However, airlines are trapped with their existing fleet programme and stricter financial capabilities to embark on fleet diversification.
Another analyst said airlines with deep pocket with a sufficient mix of routes and loads would comfortably re-adjust their orders for more fuel-efficient, less emission and lower maintenance aircraft.
Winair AS founder and aviation consultant Hans Jørgen Elnæs said airlines would need to adjust their fleet based on demand and profitable routes, covering thin and trunk routes.
"Instead, airlines should reduce their fleet and staff according to demand. Then, they can grow again when demand picks up," he told NST.
Malaysia Airlines Bhd (MAB) recently said the carrier would not diversify its fleet of aircraft as the national carrier can operate sustainably with its current network plans, under the Long-Term Business Plan (LTBP) 2.0.
"As with any other airline, we will continue to review our fleet strategy from time to time, balancing the economics, product offering and capability of the aircraft technologies with our future needs," Malaysia Airlines told NST in an email response recently.
On fleet expansion, MAB parent company, Malaysia Aviation Group, said it would require 83 aircraft comprising 54 narrow-body and 29 wide-body aircraft by 2025.
Group chief executive officer Captain Izham Ismail said the airline is committed to taking delivery of Boeing 737 Max in 2024 and exploring the possibility of taking the delivery earlier by the second half of 2023.
"We hope all issues revolve around the B737 Max will be resolved as the aircraft was already flying," he said, adding that delivery of 25 units of the B737 Max will take three to four years while hoping that consumer confidence gets restored soon.
MAG had initially scheduled to take delivery in July 2020, however, the B737 MAX was grounded globally after two crashes due to technical problems, while several airlines and lessors had cancelled orders.
Meanwhile, an internal source from AirAsia Group Bhd, who requested anonymity, said the low-cost carrier did not intend to diversify its aircraft fleet nor place new orders.
It is believed that the airline opted to readjust its aircraft order as the pandemic hampered its operations and network growth.
Embraer SA had recently said local airlines must diversify their fleet to include smaller narrow-body aircraft to increase direct connectivity between cities in Peninsula Malaysia, Sabah, Sarawak as well as the Southeast Asian region.
Head of commercial aviation for Embraer in Asia Pacific Raul Villaron said sustainably was vital amid the current highly challenging market environment.
Domestic and intra-regional traffic would be the foundation of the short to mid-term growth, he added.
"The airlines' ability to right-size capacity to passenger demand would enable carriers to potentially," Villaron told NST.
He said domestic air travel traffic would likely recover faster in all regions including Malaysia as the country boasted a larger domestic market.
"The ever-increasing relevance of regional traffic in the recovery will require an efficient network, providing connectivity beyond the major cities," he added.