Malaysia Airlines Plans Airline Purchase - Report

Malaysia Airlines (MAS) is looking at an airline purchase as it has a cash surplus, a local newspaper said on Thursday, citing a senior company official.

"People always ask why we keep so much cash. We are positioning ourselves so that when the chance comes, we will be ready to grab it," MAS Managing Director Idris Jala told the Star newspaper.

"In the next two or three years, if the economic downturn persists, we won't even have to go looking. Opportunity will present itself to us."

The company had MYR3.57 billion ringgit (USD$990.3 million) in cash as of December 31, the paper said.

MAS also confirmed there were no more discussions with Australia's Qantas Airways about a maintenance venture after a memorandum of understanding expired recently, the paper said.

The paper said MAS was targeting MYR700 million of cost cuts this year.