KUALA LUMPUR—Tengku Azmil Zahruddin, chief financial officer of Malaysia Airline System Bhd. (MAS) comments on the carrier’s aircraft-leasing arrangement with a unit of American International Group Inc. (AIG) after the US government took control of the company in an $85-billion bailout to prevent the bankruptcy of the country’s biggest insurer.

Tengku Azmil made the comments in an e-mailed response to a Bloomberg query.

On the leasing contract:

“We do not expect there to be any issues with respect to aircraft leased from’’ the International Lease Finance Corp., AIG’s leasing unit.

“Lease contracts typically have a ‘quiet enjoyment’ clause which means that as long as MAS is keeping to its side of the contract, we will get uninterrupted use of the aircraft. In any case, it appears that the Federal Reserve has come in to assist AIG.’’

On the impact of lower crude prices:

“We are always monitoring the fuel price levels and our own hedging levels. When we announced our second-quarter results, we mentioned that for 2008, we are 48 percent hedged and for 2009, 26 percent.

“We will provide an update of our latest hedging position when we announce our third-quarter results in November.’’ (Bloomberg)

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Malaysian Air says AIG bailout hasn’t affected leasing contract

KUALA LUMPUR—Tengku Azmil Zahruddin, chief financial officer of Malaysia Airline System Bhd. (MAS) comments on the carrier’s aircraft-leasing arrangement with a unit of American International Group Inc. (AIG) after the US government took control of the company in an $85-billion bailout to prevent the bankruptcy of the country’s biggest insurer.