Boeing signs record US$22.4 billion order with Indonesia’s Lion Air
Written by defenceWeb, Wednesday, 15 February 2012
Boeing said Lion Air, Indonesia's largest carrier by passenger volume, has ordered 201 737 MAXs and 29 next-generation 737-900 ERs. The deal is the largest commercial airplane order ever in Boeing's history by both dollar value and total number of airplanes.
Lion Air will also acquire purchase rights for an additional 150 airplanes, Boeing said.
The announcement was made in a statement at the Singapore airshow yesterday.
"The 737 MAX is the best choice for Lion Air and the best airplane to serve our passengers," said Rusdi Kirana, Lion Air Founder and President Director. "We're excited to be the first airline in Asia to fly the 737 MAX and to be the global launch customer of the 737 MAX 9."
"Lion Air has been a leader in Indonesia from the very beginning," said Dinesh Keskar, vice president of Asia-Pacific and India Sales for Boeing Commercial Airplanes. "Today more people are flying in Asia at lower fares because of the 737 and this historic 737 MAX order will help connect more people in the future."
In November, Lion Air announced the original massive order during U.S. President Barack Obama's Asia-Pacific tour. Europe's Airbus had accused the United States of applying political pressure to secure the deal. The White House has said the agreement will help to support more than 110 000 US aerospace jobs.
Financing includes some support from the US Export Import bank export credit agency, the amount of which remains to be determined, Kirana added.
Kirana is still shopping for aircraft and will be back at Asia's biggest aerospace show today to pick up two Hawker Beechcraft business jets. He is also in talks with Airbus for possible future purchases of long-haul jets and is expanding deliveries of European ATR turbo-props.
While Lion Air's recent moves have generated positive public relations, the company faces difficulties with its image. It has a reputation for delays and is banned by the European Union under a move originally applied to all Indonesian airlines over safety concerns, treatment Kirana calls unfair.
Lion Air has also taken a knock from a recent drugs scandal involving two pilots. The fallout is ongoing, with the drugs agency suggesting many pilots could have problems. Kirana denies this and says he is working closely with the agency.
"It's the price of success. If you are Michael Jackson or Lady Gaga or Rusdi, there are a lot of rumours".
Lion Air has half the domestic market but to fulfil a dream of grabbing 60 percent it desperately needs more pilots and technicians.
Kirana founded Lion Air in June 2000 with his older brother. Today, the two brothers and co-owners have been contemplating floating the company for more than US$1 billion, but postponed the offering due to choppy markets.
Top stories this week
- Home Affairs sets up team to look at visa regulation implementation
- ISS: Prosecuting Kenyatta - damned if you do, damned if you don't
- Paramount establishes Paramount Aerospace Azerbaijan
- Three rhinos shot every day in South Africa
- Specialist training needed if Army is to contribute more to counter-poaching
- Boeing and Paramount ink cooperation agreement as Boeing expands African presence
- Boeing forges ahead with MSA project
- Airbus hits 1,001 orders this year, net sales lag Boeing
- Rheinmetall and Pindad sign Indonesia ammunition deal
- Boeing, South African Airways to make jet fuel from tobacco
- Factbox: Orders and deals at Farnborough Airshow
- Airbus, Boeing climb close to $100 billion in air show deals
- Boeing and Paramount sign defence and security agreement
- Boeing forecasts demand for 36 700 new airplanes
- Emirates finalises $56 billion order for 150 Boeing 777X planes
Saab wins LEDS-50 MK2 launch order
by Saab, 18 September 2014
The LEDS-50 MK2 provides additional protection to the vehicle and crew by detecting the presence of latest generation laser threats.
Denel positive about participating at 8th Africa Aerospace and Defence show
by Denel Corporate, 18 September 2014
The company aims to reconfirm its leadership within the hi-tech aerospace and defence markets in Africa.
Through-life support communication systems
by Reutech, 18 September 2014
The demonstrations of an integrated communications on the move platform will take place at AAD 2014.
Global defence trends to be discussed at conference hosted by Denel
by Denel Corporate, 15 September 2014
The inaugural Denel Aerospace and Defence Conference will offer intense discussions on the challenges and opportunities facing the industry.
Reutech equipped for Project Biro
by Reutech, 15 September 2014
The company is able to supply equipment and services to the SA Navy programme for the procurement of offshore and inshore patrol vessels.
NATO milestone - RRS delivers first major export order on product level
by Reutech, 12 September 2014
All five RSR 210Ns from Reutech Radar Systems have been fully accepted into the Royal Norwegian Navy.