MAS WITHDRAWS US$35.5 MIL CIVIL SUIT AGAINST AIR MALDIVES

KUALA LUMPUR, March 5 (Bernama) -- Malaysia Airlines (MAS) Friday withdrew
its
US$35.5 million (RM124 million) civil suit against Air Maldives (AML) filed in
the High Court here in 2004 following an agreement reached with the Maldives
Government two weeks ago.

Under the agreement sealed in the Maldives capital Male on Feb 14, the
Maldives
Government withdrew a US$90 million (RM315 million) claim filed with the
Singapore-based International Court of Arbitration on March 1.

MAS officially notified Bursa Malaysia today on the out-of-court settlement
between the two parties.

The agreement was reached with the Maldives authorities after a series of
intense negotiations by two top MAS executives led by its General Manager of
Network and Revenue Management Dr Mohd Amin Khan and General Manager of
Corporate and Legal Services Dr Wafi Nazrin Abdul Hamid.

Dr Mohd Amin and Dr Wafi Nazrin were advised by MAS External Counsel Rosli
Dahlan and Nadia Marni Mat Zin. The Maldives' team was led by the Minister of
State for Finance and Treasury Ahmed As-ad and Attorney-General Uz Husnu
Al-Suood.

MAS was liable in an earlier joint-venture agreement signed between the
Maldives Government and Naluri Corporation Bhd, the corporate vehicle of then
MAS chairman Tajudin Ramli.

The settlement brings to an end one of MAS' disputes. For the record, this
is the second major cross-border dispute settled by MAS since last year.

It also paves the way for MAS and the Maldives Government to develop new
business opportunities for the Kuala Lumpur-Male sector and other destinations
in India.

In Mid-2009, the same MAS team settled another claim by a German company,
ACL GmBH.

The Arbitration Tribunal in Geneva found MAS liable for breaching a 10-year
cargo handling contract with the company.

The tribunal awarded 5.5 million euros (RM27.5 million) though the company
had filed a claim for 63 million euros (RM315 million).

-- BERNAMA