MALAYSIAN AIRLINES DEFAULTS ON FREIGHTER PAYMENT

   Malaysian Airlines System has failed to make $1.8-million payment due under a lease agreement the airline has with Virginia-based World Airways for an MD-11 all-cargo plane.
   World Airways, itself struggling financially, made the announcement
about MAS to warn investors of a potential "material adverse effect" on its earnings if the debt is not resolved.
   MAS owes World a total of $22.1 million under the wet-lease agreement through September 2000. World said it is in discussions with MAS and also looking for another customer for the MD-11.
   MAS has been a World Airways customer since 1981. Observers have said MAS is more than $3 billion in debt. World suffered a similar default on lease payments from Philippine Airlines two years ago, before the airline temporarily shutdown.