Malaysia Airline expected to make decision on fleet renewal

Airline Industry Information, August 9, 2005

AIRLINE INDUSTRY INFORMATION-(C)1997-2005 M2 COMMUNICATIONS LTD

In September, Malaysia Airline is expected to make a decision on whether it wants to acquire Boeing 737-800 or Airbus A320 aircraft to renew its fleet.

The decision to renew the fleet has reportedly been prompted by increasing costs for fuel and maintenance and the airline also intends to expand its routes to China and India towards the end of 2005. According to industry sources, an agreement to replace the current 11-year-old Boeing 737-400 aircraft could cost up to USD2.57bn at list prices, The Associated Press reported.

Airline officials have said that the final decision regarding model and number of aircraft will be made by Penerbangan Malaysia Berhad, Malaysia Airline's parent company.

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