KUALA LUMPUR (Reuters) - Malaysia Aviation Group, the parent company of Malaysia Airlines, said on Friday it will purchase 30 new Boeing 737 aircraft for 2029 delivery, aimed at modernising the flag-carrier's fleet and rebound from a series of setbacks. 

The group has agreed to buy 18 Boeing 737 MAX 8 and 12 of the 737 MAX 10 planes, MAG managing director Izham Ismail said. MAG declined to reveal the value of the deal.

The group includes Malaysia Airlines, short-haul airline Firefly, and pilgrimage airline Amal, and has a mixed fleet of both Airbus and Boeing ( BA ) planes. It was not immediately clear how the new jets would be allocated.

Malaysia Airlines has struggled to recover from two deadly disasters in 2014, and temporarily reduced its flights after it was investigated last year by Malaysia's civil aviation authority, which found several significant safety and maintenance issues.

"It's very timely that Malaysia Airlines does not repeat the same mistake. So, the ordering of new planes must be well-timed, otherwise we will end up as we did last year," Izham told a press conference, describing the purchase as a very important milestone.

The deal includes an option to purchase a further 30 jets, depending on market conditions, Izham said. The decision to purchase the aircraft was based on extensive evaluations. 

"Malaysia Airlines has to prove its credibility, that it is able to sustain its trajectory sustainably, commercially, and financially, then we'll make that decision," he said.

The airline, which has been steadily growing its fleet, was delisted in 2014. Sovereign wealth fund Khazanah Nasional then took over ownership of the restructured parent company, MAG.

Malaysian Prime Minister Anwar Ibrahim said he was pleased to see Malaysia Airlines continue its longstanding relationship with Boeing ( BA ).

"I trust that Boeing ( BA ) and GE Aerospace will recognise this partnership as a valuable opportunity to strengthen their presence in Malaysia," he said. 

In February 2022, MAG agreed to lease 25 new Boeing 737 MAX 8 jets from Air Lease Corporation for delivery by 2026. Eleven have so far been received and the rest would arrive in the next 18 months, Izham said.

Boeing ( BA ) plans to increase its 1000+ Malaysia workforce by 20% over the next two years, according to Brendan Nelson, president of Boeing Global, who also attended the signing.

The new fleet of aircraft will be powered by CFM LEAP-1B engines from CFM International, jointly owned by GE Aerospace and Safran.

MAG also said in 2022 it would acquire 20 new Airbus A330neo jets by 2028, the first of which arrived in November.

(Reporting by Ashley Tang; Additional reporting by Lisa Barrington in Seoul; Editing by Martin Petty and Rachna Uppal)