MAS to defer jet delivery

MAS to defer jet delivery

KUALA LUMPUR (AFP): Malaysia Airline System Bhd. (MAS) is to
defer taking delivery of its new Boeing aircraft due in 1998 and
1999 amid a declining load factor and currency fluctuations, a
report said yesterday.

Malaysia Airline executive vice-president (group finance) S.
Suppiah said the company was currently talking to some European
and American airline companies on possible swaps in the delivery
slot.

"The change in delivery schedule is due mainly to declines in
our load factor and the currency fluctuations," Suppiah told The
Star newspaper.

"We have also taken into account the government call to reduce
lumpy imports. Due to the declines we have to review our capacity
requirements," he said.

Malaysia Airline's load factor had declined to below 60
percent in October and November from an average 72 percent in the
six months to September before picking up in December, he added.

The national carrier had in 1996 placed an order with US-based
Boeing Co. for 25 aircraft, comprising 15 Boeing 777s and 10
Boeing 747-400s, at a cost of four billion dollars as part of a
major fleet-expansion program.