Malaysia Airlines (MAS) is searching the market for its first Airbus A320s to lease, ahead of a decision on whether to replace its ageing Boeing 737-400s with Next Generation 737s or A320-family aircraft.

However, industry insiders are divided over whether the move indicates that the Malaysian carrier is leaning towards A320s to meet its narrowbody requirement.

MAS, which has previously considered leasing additional 737s, is seriously seeking A320s and talks are being held with several parties, say industry sources. The aircraft are being sought "as they need the lift", says one source, possibly for new international services to secondary destinations in China and India.

The A320 lease search has sparked interest from the manufacturers and leasing companies, as MAS does not operate the type, and Airbus and Boeing are deep into a competition with the carrier covering the supply of new narrowbodies.

Most observers believe the fact that the airline is looking for A320s before making a selection in the purchase competition is not a definitive sign that it will order the type to replace its 737-400s.

However the observers say it is a probable sign that there are factions within the airline and its parent company Penerbangan Malaysia (PMB) that are pushing hard for the A320 over the 737-700/800.

Last month the state-owned carrier issued a request for proposals to the two major airframe manufacturers, as well as to the manufacturers of smaller regional aircraft, for a long-awaited fleet modernisation.

Bids were due in on 15 February, say the sources, and the airline has said it aims to make decisions by the end of March, although most believe this is too ambitious and orders are more likely to come around the middle of the year.

MAS is planning to purchase more than 40 A320s or 737-700/800s to replace its 39 737-400s.

NICHOLAS IONIDES / SINGAPORE

Source: Flight International