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Malaysia Could Cancel Airbus A380 Order

Airline may cancel its order of six A380 superjumbos if Airbus continues to postpone delivery of the planes, a top executive said Monday.

KUALA LUMPUR, Malaysia (AP) -- Malaysia Airlines may cancel its order of six A380 superjumbos if Airbus continues to postpone delivery of the planes, a top executive said Monday.

"We're not happy with the delays, and we'll not rule anything out at this stage," said the company's managing director, Azmil Zahruddin.

"It's very frustrating because we have certain plans. We want to do certain things to the network and we already planned ahead to let go of certain aircraft before the A380 comes in, so (the delay) messes up those plans," he said.

Airbus was to have start delivery of the planes in 2007 but postponed it to late 2011. Recently, it further delayed delivery of the aircraft to the first half of 2012. It has paid 329 million ringgit ($103 million) in compensation to Malaysia Airlines so far.

"The board's position is quite clear. We cannot tolerate another postponement," said Malaysia Airlines Chairman Munir Majid.

Azmil said the airline is still in talks with Airbus over the matter.

If it does cancel the order, the airline may consider buying the Boeing 777-300 jumbo jets, he said.

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