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Malaysia negotiates to buy six Airbus A380

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Malaysia negotiates to buy six Airbus A380

Old 7th Jan 2003, 12:32
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Malaysia negotiates to buy six Airbus A380


Tuesday January 7, 10:37 AM
Malaysia negotiates to buy six Airbus A380-report

KUALA LUMPUR, Jan 7 (Reuters) - Malaysia is negotiating with European plane maker Airbus to buy six A380 superjumbo jets for state carrier Malaysian Airline System Bhd (MAS) , the Star newspaper said on Tuesday.

The newspaper, quoting unidentified sources, said the deal could be worth $1 billion to $1.5 billion, depending on how MAS wanted the aircraft furnished. The purchase was likely to be funded by the issue of debt.

Airbus, owned by European Aeronautic Defence & Space Co NV

and Britain's BAE Systems Plc , says the 555-seat A380 will be the world's biggest passenger aircraft when it rolls out in 2006.

Malaysia is expected to start taking delivery of the first four A380s in 2006, with an option to buy two more later.

MAS officials could not be reached for comment.

Except for nine Airbus A330-300s, MAS's fleet of 81 aircraft comprises only Boeing planes.

MAS's regional competitors, Singapore Airlines and Australia's Qantas , have placed orders for 22 of the long-range passenger planes.

The Malaysian government has proposed taking over MAS's assets, including its entire fleet and its huge debts, to help revive the troubled carrier. MAS will be transformed into just an operator, using planes leased from the government.
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