MAS buys Boeing jets

MAS buys Boeing jets

KUALA LUMPUR (Reuter): The Malaysian Airline System (MAS) said yesterday it would buy 25 Boeing passenger jets over the next five years, shutting out European rival Airbus Industries from a deal worth around US$4.0 billion.

"There could only be one winner," Malaysia Airlines Chairman Tajudin Ramli told a news conference after the announcement.

McDonnell Douglas Corp also put in a losing bid.

Tajudin said the purchase of 15 Boeing 777s and 10 747-400s would cost around 10 billion ringgit ($4.0 billion).

He said 70 percent of the financing would come from internal sources, including the possible sale of some older aircraft, and the remaining 30 percent would be raised externally.

The first Boeing 777 is expected to be delivered in May 1997 while the first Boeing 747-400 in September 1997. The remaining aircraft will be delivered on a staggered basis by the year 2001.

MAS also said Rolls-Royce engines would power the Boeing 777 aircraft while the Boeing 747-400 aircraft would use engines of United Technologies unit Pratt & Whitney.