Boeing and Indonesia's Lion Air confirm historic $22.4 billion deal

2012-02-15 14:02:57 GMT+7 (ICT)

SINGAPORE (BNO NEWS) -- U.S. aircraft manufacturer Boeing on Tuesday announced that it has finalized a historic deal with Jakarta-based Lion Air to purchase at least 230 aircraft. The deal is valued at approximately $22.4 billion per list prices.

The agreement was first announced in November 2011 when U.S. President Barack Obama visited the Indonesian island resort of Bali for the East Asia Summit. Obama witnessed the official announcement and called it a 'remarkable example' of the trade investment and commercial opportunities that exist in the Asia Pacific region.

The deal, which is Boeing's largest commercial airplane order ever, includes a firm order for 201 Boeing 737 MAX aircraft and 29 Next-Generation 737-900ERs. It also includes rights for Lion Air to purchase an additional 150 airplanes in the future.

Rusdi Kirana, Lion Air founder and President Director, expressed his excitement as the airline will become the first in Asia to fly the 737 MAX and the global launch customer of the 737 MAX 9. "The 737 MAX is the best choice for Lion Air and the best airplane to serve our passengers," he said.

Dinesh Keskar, vice president of Asia-Pacific and India Sales for Boeing Commercial Airplanes, remarked Lion Air as a 'leader in Indonesia'. "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," he said.

According to Boeing, the 737 MAX will see a 10 to 12 percent fuel burn improvement over most fuel efficient single-aisle airplanes currently in use and a 7 percent operating cost per seat advantage over upcoming aircraft.

Lion Air is a fast-growing private airline that since its establishment in 2000 has rapidly grown to become the largest domestic airline in Indonesia, the world's fourth largest country. Along with all Indonesian airlines, Lion Air is currently banned from operating in the European Union.

-- © BNO News All rights reserved 2012-02-15

Open up Europe and open up great things for both parties. Europe gets flights and Indonesia provides them. Wish they had direct flights the first time I went.