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          PAS : KE ARAH PEMERINTAHAN ISLAM YANG ADIL
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Airbus lines up huge MAS order

Andrew Doyle/MUNICH
Paul Lewis/WASHINGTON DC
Malaysia Airlines (MAS) is in the final stages of negotiations with Airbus 
Industrie on an
order for up to 80 aircraft, including 18 A340-500/600 widebodies and up to 
62 examples of
the A320 family.

Industry sources say the aircraft types have been agreed and the talks are 
focused on
financing and industrial participation issues. MAS wants to acquire 10 
A340-500s, eight
stretched -600s and 45 single-aisle aircraft, plus 17 options, the sources 
say.

One option believed to be under discussion is the creation of a leasing 
joint venture between
MAS and Airbus to finance the purchase. The industry sources say the 
complicated aspects
of this side of the deal could delay completion by months. Top -level 
political lobbying of
Malaysia by European governments has been under way recently in an effort to 
clinch the
order for Airbus.

Malaysia is understood to be seeking agreements over technology transfer and 
participation
for the country's growing aerospace industry in Airbus subcontract work in 
return for
awarding the order to the European consortium.

In an effort to derail the Airbus campaign, Boeing is pushing hard to 
persuade MAS to
recommit to its yet-to-be-launched 777X derivatives and to take Next 
Generation 737s
(Flight International, 1-7 December, 1999).

The carrier has become increasingly frustrated, however, by Boeing's 
repeated delays in
launching the 777X and by its decision to offer the aircraft exclusively 
with the General
Electric GE90 powerplant. MAS operates eleven 777-200/300s powered by the
Rolls-Royce Trent 800.

CFM International is tipped to win the engine contract for the A320s with 
its CFM56, say
the sources. The sole-source powerplant for the A340-500/600 is the Trent 
500.

If the deal is completed, the Malaysian flag carrier plans to use the 
A340-500s and -600s to
replace older Boeing 747s and open non-stop transpacific services to the 
USA. The A320s
would replace its 40 737-400/500s.
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