MAS MAY CANCEL ITS A380 ORDER

PETALING JAYA (Malaysia) June 21 (Bernama) -- National carrier Malaysia
Airlines (MAS) is very disappointed with the prolonged delay in the delivery of
the A380 super jumbo aircraft and may choose to cancel its six orders.

"We do not rule out anything," said its Managing Director and Chief
Executive Officer Tengku Azmil Zahruddin when asked if MAS may cancel the order.

MAS Chairman, Dr Munir Majid, said the board had elaborated on the issue and
was very disappointed with the numerous postponements.

In the latest development, MAS is scheduled to receive the first A380 in the
second quarter of 2012.

Airbus was initially scheduled to start delivering MAS' A380s in January
2007 but the first delivery was postponed to January 2011 following delays in
the aircraft maker's programme and was again deferred to August 2011.

MAS is already in discussion with Airbus on the delay, Tengku
Azmil told reporters after the company's Annual General Meeting here, Monday.

He said the delay in delivery has added pressure to the airline's planning.

"It's very difficult to plan, to make sure that our network is in the right
place," said Tengku Azmil, adding that the hope was to conclude the talks by
year end.

MAS had plans to let go some aircraft before the A380 comes in, and it is
frustrating to plan with the delay by Airbus, he said.

Asked on compensation, Tengku Azmil said: "We are still in discussion on
compensation. We need to make sure that we are not talking about a whole series
of delay."

On whether MAS will swap A380 with A350, he said there were no such plans at
this point of time but was "looking" at the A350 and Boeing 737.

"We just want to make sure that if we take A350 in future, that is the right
aircraft for us. But not necessarily as part of the A380 package."

He said the Boeing 777-300 has the potential to replace A380.

"There are plenty other options available," said Tengku Azmil.

On another development, Tengku Azmil said it will be incorrect to say that
MAS needed the compensation money from A380 to make money.

"We want to make money from operation and the target is RM100 million
(US$30.30 million) to RM300 million (US$90.90 million) for operating profit for
the current financial year. We want to achieve that or exceed," he said.
-- BERNAMA


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