Boeing signs record US$22.4 billion order with Indonesia’s Lion Air
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
- Ex-Libyan rebel commander can sue former minister
- Russia turns to Libya with show of support for eastern commander
- Libyan Air Force MiG-23 crashes in Benghazi
- Scores of migrants feared dead, 13 bodies found in Mediterranean
- EU eyes new Libya approach to block feared migrant wave
- Attempt to seize ministry buildings in Tripoli fails
- Eastern Libya military commander tours Russian aircraft carrier
- Italy reopening embassy in Libya
- Libya to declare force majeure at two ports
- Chad shuts border with Libya
Denel on track to meet contract with Namibia
by Denel Corporate, 20 January 2017
The defence company will deliver armoured patrol vehicles and light-weight remote weapon systems to Namibia within the next four months.
Airbus sells its shares in Atlas Elektronik
by AIRBUS Defence & Space, 13 January 2017
The company has entered into an agreement to sell its 49% share in Atlas Elektronik Group to thyssenkrupp.
Thales to equip the French forces with Spy'Ranger mini reconnaissance UAVs
by Thales, 10 January 2017
The mini surveillance and reconnaissance unmanned aerial vehicle has been chosen by the French Defence Procurement Agency.