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Malaysia Airlines denies A380 superjumbo order cancellation

Kuala Lumpur (XFN-ASIA) - Malaysia Airlines (MAS) has denied

that it is likely cancel an order for six Airbus A380 superjumbos after delays

in delivery of the aircraft.

"MAS is still in discussions with A380 on the various

options available and no decision has been made," the airline said in a

statement.

The denial was issued after the New Straits Times, citing unnamed sources, reported that the carrier was mulling cancellation of the order for the A380s over delivery delays.

The newspaper said the airline was expected to receive its first A380 by late 2009, a delay leading to exclusion from it's fleet plan.

"These planes are really expensive so there is no point in wasting taxpayers' money if it no longer fits into MAS' overall plans," a source was quoted as saying.

Airbus said in November that Malaysia Airlines had not cancelled its order despite the company failing to meet delivery deadlines for 10 months.

Deliveries of the A380, the world's largest commercial airliner and the cornerstone in Airbus' efforts to catch up with Boeing, are now two years behind schedule because of production problems.

The struggling aircraft manufacturer on Friday saw strikes of thousands of Airbus workers across Europe after announcing 10,000 job cuts in a bid to solve a crisis caused mainly by problems with its A380 superjumbo jet.