MAS DENIES SWAPPING A380 ORDERS FOR SMALLER PLANES

PETALING JAYA (Malaysia), Sept 29 (Bernama) -- Malaysian Airline System Bhd
(MAS) has no plans to swap the Airbus A380 for smaller wide-body aircraft such
as A330 or A350.

"We don't have any conversation with Airbus saying that we don't want the
A380. There is no foundation to the report," chief executive officer/managing
director, Tengku Azmil Zahruddin, told reporters after the signing of support
agreement for CFM engines with CFM International here Tuesday.

According to the recent Standard & Poor report, MAS has broached the idea of
swapping the A380 for smaller wide-body aircraft to avoid up to US$300 million
(US$1=RM3.49) in penalty if it were to cancel the order.

A local English daily, quoting a source familiar with the situation, said
MAS recently sent its technical staff to Airbus' headquarters in Toulouse to
evaluate the smaller wide-body aircraft.

MAS ordered six A380s in 2003 for delivery in 2011.

The A380 is a double-deck, wide-body, four-engine airliner that seats 525
people in a typical three-class configurations or up to 853 people in
all-economy class configuration.

"We have visited Toulouse to prepare for the arrival of A380s. I think it is
good for us to visit our supplier, not only Airbus but also Boeing because there
are always things that we need to work together.

"It is not unusual at all. We are on scheduled to receive the A380s," he
said.

MAS currently operates 14 A330-200/300s with an average age of 13 years.

Azmil said the airline industry was expected to see more signs of
recovery towards the second half of this year.

"We have seen some signs of improvements in the cargo side but not the
passenger growth," he said.

The national airline Tuesday sealed an agreement with CFM International,
which will provide engine support for the carrier's Boeing 737-800 fleet.

Under the agreement, CFM will provide full support, including technical
training, engineering and repair, as well as spare parts.

MAS will use the new aircraft primarily within the Asean, including domestic
Malaysian operations, as well as to Australia, China and India.

In 2008, MAS placed 35 firm and 20 optional orders for the aircraft with
delivery commencing in fourth quarter of 2010.
-- BERNAMA