The Malaysian Airlines has kept the markets in India and China at the top of its new expansion plans.
With Asian economies growing faster than those in Europe and the Americas, the national carrier is also focusing on the neighbourhood and Australia.
Over 600,000 Indians travelled to Malaysia in 2009.
The airline's managing director and chief executive officer Tengku Datuk Azmil Zahruddin has denied plans to turn it into a budget airline.
According to Boeing Commercial Airplanes senior manager of market analysis Michael L. Warner, global passenger traffic should grow at 5.3% a year and air cargo at 5.9% a year over the next 20 years. Passenger traffic within Southeast Asia alone will grow by 7% a year.
"The fleet of 737-800s in the five six-hour sector will help meet future demand in short-range passenger traffic in the ASEAN (Association of Southeast Asian Nations) and a large part of China and India," said Tengku Azmil.
For the first time, these new airplanes will be fitted with Boeing's most recent cabin offerings called Boeing Sky Interior, the New Straits Times said on Monday.