Prime Minister Mahathir Mohamad today said the government will fund the purchase of six A380 superjumbo aircraft for troubled national carrier Malaysia Airlines because it has access to cheaper funds.

Mahathir said the proposed acquisition for the A380-800 would not be financed in a lump sum, Bernama news agency reported. He did not elaborate.

Bernama said six Airbus A380-800 passenger aircraft would be acquired by Penerbangan Malaysia Bhd (PMB), the parent company of Malaysia Airlines and leased to the carrier. The aircraft would be delivered to Malaysia Airlines beginning 2007.

Mahathir said Malaysia opted this strategy because the government had access to cheaper funds.

It was reported the deal could cost PMB between RM3.8 billion and RM5.7 billion depending o­n the furnishing, with each plane to cost RM646-RM950 million.