20000228

Airbus favourite for Malaysian order-paper

LONDON: European aircraft maker Airbus Industrie is leading the race for a $3.5 billion order for at least 60 aircraft from Malaysian Airlines, the Sunday Telegraph newspaper reported.

The deal would include both widebodied and single-aisle aircraft and would replace existing aircraft from rival Boeing of the United States in the Malaysian fleet.

If Airbus succeeds, it would also give Rolls-Royce a boost as its Trent 500 engines are used in Airbus' A340-500/600 wide body aircraft.

Airbus is a consortium of four parties Systems of the UK, Dasa of Germany, Casa of Spain and Aerospatiale Matra of France.

Last week, speaking at the Asian Aerospace show in Singapore, senior vice-president John Leahy said the consortium was talking to a host of airlines including Malaysian Airlines, Singapore Airlines and Cathay Pacific 0293.HK.

Separately, the Sunday Times newspaper reported that the British government had agreed to provide aid of 540 million pounds ($860.8 million) for Airbus' superjumbo, the A3XX.

The newspaper, however, said that the aid would not be formally announced until BA Systems, European Aeronautic, Defence and Space Co (EADS) and Casa agree terms to form a new Airbus Integrated Company.

EADS is in the process of being formed through the merger of Dasa and Aerospatiale Matra.-Reuters