MAS Airline Struggles: Government’s Boeing Deal, SIAEC Impact
The ongoing challenges faced by Malaysia Airlines (MAS) have sparked controversy over the loss of key engineering talent to Singapore Airlines Engineering Company (SIAEC). Since January, 63 engineers have left MAS’s engineering arm, with 12 joining SIAEC. Some Malaysian politicians have blamed SIAEC for poaching skilled workers. However, the root of the airline’s problems lies in decisions made by the government that took power in 2018.
In 2017, Najib Razak’s administration signed a forward-thinking $2.25 billion provisional deal with Boeing. This deal aimed to equip MAS with 787 Dreamliners. The new aircraft would help modernize MAS’s aging fleet and improve efficiency. This move was intended to equip MAS with the latest technology, improve efficiency, and enhance the airline’s competitiveness. However, after the 2018 elections, the new government decided to cancel the Boeing contract, claiming uncertainty over its future fleet requirements. This decision, driven by short-term thinking, created a ripple effect, leaving MAS with an outdated fleet and maintenance challenges.
The continuous political instability in Malaysia since 2018 has further compounded the airline’s troubles. After Najib Razak’s government fell, the new administration led by Mahathir Mohamad canceled critical contracts like the Boeing deal. This action left the airline’s fleet modernization in limbo. Successive governments under Muhyiddin Yassin and Ismail Sabri Yaakob failed to address the deep-rooted issues within MAS. Instead, they focused on political survival rather than industry reform. Even under the current Prime Minister, Anwar Ibrahim, little has been done to rectify the airline’s operational and financial struggles.
MAS Airline Struggles Amid Government’s Boeing Deal Fallout
MAS stands as a symbol of national pride, but government indecisiveness has weakened the airline. The lack of coherent policies has exposed the carrier to internal challenges. This failure has also left MAS struggling to compete against external rivals.
The airline is now struggling with frequent technical and manpower shortages. According to Transport Minister Anthony Loke, these shortages are contributing to widespread flight delays and disruptions, exacerbating MAS’s operational problems. The cancellation of the Boeing deal has left MAS without the necessary aircraft upgrades. Aside from that, it has also led to a reliance on older aircraft that require more frequent and costly maintenance.
SIAEC Competition Adds Pressure to Malaysia’s National Carrier
Meanwhile, SIAEC has made strides in establishing its maintenance, repair, and overhaul (MRO) facility in Subang, Malaysia, and has been hiring through transparent, open recruitment processes. While SIAEC has benefited from MAS’s workforce attrition, it is the government’s failure to invest in its own future that has put it at a disadvantage.
The 2017 Boeing deal, orchestrated by Najib, showed the foresight needed to keep MAS competitive. Unfortunately, the decision to abandon it has left MAS facing severe technical issues, a dwindling talent pool, and an uncertain future. MAS’s woes are a direct consequence of government decisions that prioritized cost-cutting over long-term sustainability, leaving the airline vulnerable in an increasingly competitive regional aviation market.
