MAS NOT CANCELLING A380 SUPER JUMBO ORDER, TO RECEIVE US$101.3 MILLION COMPENSATION

KUALA LUMPUR, June 29 (Bernama) -- MAS will not cancel its order for six
A380 super jumbo aircraft from Airbus despite the prolonged delivery delay, the
House of Representatives was told Tuesday.

Deputy Minister of Transport Abdul Rahim Bakri said the national carrier
is expected to be paid RM329 million (US$101.3 million) compensation by the
aircraft manufacturer.

"At this juncture, MAS has no plans to rescind the order. Airbus is to
compensate MAS RM329 million," he said when replying to points raised during the
debate on the 10th Malaysia Plan.

Airbus was supposed to deliver the 555-passenger largest civil aircraft in
January 2007 but the delivery was postponed to January 2011 following delays in
the manufacture of the "Big Bird".

The delivery has since been deferred further to August 2011.

Very disappointed with the prolonged delay, MAS was said to be considering
revoking its order for the six A380s, the world's first twin-deck and twin-aisle
airliner.

Abdul Rahim also said the Malaysia Airports Berhad has upgraded the runway
at the Kuala Lumpur International Airport at a cost of RM115.5 million (US$35.56
million) to handle the landing and take off of the A380 super jumbo aircraft.

"Currently, only the KLIA has the operational requirements for A380," he
added.

-- BERNAMA