MAS TO PURCHASE UP TO 25 NEW A330 AIRCRAFT

PETALING JAYA (Malaysia), Dec 23 (Bernama) -- Malaysia Airlines is
purchasing up to 25 A330-300 aircraft worth US$5 billion in order to serve the
growing markets of South Asia, China, North Asia, Australia and Middle East.

"The A330 will complement our incoming fleet of six A380 and 35 B737-800,"
its managing director/chief executive officer Tengku Azmil Zahruddin told
reporters following the signing of a memorandum of understanding between MAS and
Airbus here Tuesday.

Under the deal, MAS is to acquire 15 A330-300 aircraft with options for a
further 10.

The aircraft will be delivered from 2011 to 2016.

"The new fleet will create a strong platform for us to profitably grow. The
A380 will serve key long haul destinations such as London and Sydney, the
A330 for medium haul markets while the B737-800 will be used to strengthen our
domestic and regional routes," Azmil said.

Azmil said the national carrier expected to gain annual savings of RM300
million when the first 15 A330 aircraft are received.

"By 2016, all the aircraft we have ordered will be in and we expect to have
one of the youngest, most fuel efficient and environmentally friendly fleet in
Asia," Azmil said.

He said MAS's strategy was to transform from having a 100 per cent leased
fleet to owning at least a third of the aircraft in its core fleet.

On the delay of Airbus A380 super-jumbo planes, Azmil said the delay was due
to production issue, adding that the total compensation including the additional
delay to August will be in excess of RM330 million (US$1=RM3.34).

The A380 planes which are supposed to arrive in January 2011, are now slated
to start arriving in August 2011.

On its prospects next year, Azmil said the national carrier expected a
fairly modest growth, adding that it was looking at additional potential routes
in India, China and the Middle East.

Meanwhile, Airbus senior vice president (sales) Thomas Friedberger said MAS
will benefit from the more fuel-efficient aircraft with lower operating
costs.

"Airbus has never stopped innovating and improving on the A330 family by
integrating the experiences and knowledge that we have gained through other
Airbus programme," he said.

-- BERNAMA