Malaysian Air to lease planes for India, China

Malaysian Airline, the nation's biggest carrier, may lease four Airbus SAS A320 aircraft to fly to cities in India and China.

Malaysian Airline, the nation's biggest carrier, may lease four Airbus SAS A320 aircraft to fly to cities in India and China, Standard and Poor's said in a report to clients.

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Negotiations for the planes, which will be taken on a three-year agreement, are close to completion,the ratings company's director of investment services said in a report.

The report comes as Malaysian Air considers proposals from Airbus and U.S. Rival, Boeing Co. To replace its existing Boeing 737 fleet. The airline is likely to make a decision on which planes to buy in June.

The carrier, which had its maiden flight as Malayan Airways in 1947, added services to the southwestern Chinese city of Kunming on Jan. 15 and Kolkata, India, on Jan. 28.

Last year, it increased its network in Europe and Asia with flights to Chengdu in southwestern China and Stockholm.