The parent company of flag carrier Malaysian Airlines today signed a RM6 billion deal to buy six A380 superjumbo Airbus aircraft.

Second Finance Minister Jamaludin Jarjis told a news conference the estimated price for each aircraft was US$270 million.

The government-owned Penerbangan Malaysia Bhd (PMB) will take delivery of three A380s in 2007 and three in the second half of 2008, he said, adding the company had ample time to "sort out the financing options."

Jamaludin said PMB, which emerged as the holding company for the national carrier after a major restructuring last year, had paid 8.0 percent of the total purchase price as earnest money and part deposit for the aircraft.

Airbus vice-president Kiren Rao said customers normally pay deposits of 25-30 percent prior to delivery, although the amount varies.

Palm oil payment

Asked how PMB would fund such a deposit, Jamaludin said: "PMB will go to the market, if necessary, to fund it."

PMB will lease the A380s to Malaysia Airlines, which will most likely use the 555-seater aircraft on the popular Kuala Lumpur-London route, which it currently flies 18 times a week.

Asked if Malaysia could use palm oil as part payment for the aircraft purchase - a popular tactic employed by the world's biggest palm oil producer - Rao said "we are not taking palm oil."

Jamuladin said the choice of engine, included in the purchase price, had not been decided. The main contenders are believed to be the American GE-PW Engine Alliance and Rolls-Royce.

Malaysia Airlines competitors in the region, Singapore Airlines and Qantas Airways, were among the early birds to place orders for the mega-jumbo. - AFP