National carrier Malaysia Airlines today announced it will acquire at least 55 narrow-body 737-800 aircraft from US-based Boeing for RM13.4 billion (US$4.2 billion).

But managing director Idris Jala also said the airline would not take delivery of six A380-800, the world's largest airplane, until 2011. The six aircraft were initially supposed to be delivered from January 2007.

"After extensive discussions with Airbus and Penerbangan Malaysia Berhad, we have agreed on the terms for the delayed delivery of the six A380-800 aircraft ordered by PMB in 2003.

"The terms include an agreed amount of compensation for the delay."

MAS hopes to achieve record profits under its recovery plan after it broke back into the black last year.

"I am very excited with these developments as these new fleets will both form a strong platform for Malaysia Airlines to profitably grow," Jala said.

Option to buy another 20 planes

However, he said deliveries would not happen for a few years yet, when the weakness in the global economy should be less of a concern.

"We have placed a firm order for 35 B737-800s with an option for another 20 aircraft. The total cost of the 55 aircraft is 4.2 billion dollars at list prices.

"We expect to take delivery of the first aircraft from September 2010 onwards, which will be used to replace our existing B737-400 fleet and to allow us to expand to points which were not previously economically viable," he said.

Jala said MAS also had the option to swap the B737-800 to the larger B737-900 and the aircraft would be used mainly on Southeast Asian routes and also in China and India.

"Clearly, we are now gearing ourselves to benefit from the growth of this region which is projected at around six percent per annum," he said.