Malaysia Airlines will invest RM700 million (US$184 million) to upgrade 32 Boeing aircraft in a bid to become more competitive, reports said Saturday.

The upgrade of the 17 Boeing B747-400 and 15 B777-200 aircraft, used in medium- and long-haul flights, will lead to a major facelift for the first and business class cabins and improvements in in-flight entertainment, the Star said.

Sales and marketing senior general manager Ahmad Fuaad Dahlan was quoted as saying that the exercise was a major step to boost growth and profitability.

He said it would strengthen the carrier's present services and enable it to "develop a competitive advantage" after the recent SARS crisis and various bombing incidents in the region.

The News Straits Times quoted Ahmad Fuaad as saying: "We are confident that this program could increase the load factor for our first class section by about 10 percent."

Internal funding

The refurbishment, the first such major exercise for the airline, will be funded internally and will not be a burden as the cost will be spread over four years, he added.

US-based B/E Aerospace Inc. has been awarded the contract to refurbish the cabins while Japan's Matsushita Avionics System Corp. will upgrade the entertainment system, the daily said.

It will see first-class seating in B747-400s reduced to 12 from 18, and business increased to 41 and economy to 306. For the B777-200s, the first-class section will be scrapped and business increased to 42 and economy to 247.

The exercise will begin in the third quarter this year, with the first aircraft expected to be back in service by November 2004.

The move came just after Malaysia Airlines announced plans to boost Asian routes, recruit some 800 staff and take on larger aircraft as it resumed its expansion program after recovering from the SARS crisis.