Airbus, Lion Air In $24 Billion Aircraft Deal

[Chicog]

(Reuters) - Airbus (EAD.PA) has signed a 18.4-billion-euro deal ($24 billion) with low-cost Indonesian carrier Lion Air for 234 single-aisle passenger planes, poaching one of archrival Boeing's fastest growing customers.

French President Francois Hollande's office on Monday called the deal with Lion Air, traditionally a client of Boeing (BA.N), "the biggest for Airbus in terms of the number of aircraft and the overall sum."

The contract for the A320 planes trumped that between Lion Air and Boeing in 2011 for 201 planes worth $22 billion. Lion Air has been rapidly growing its fleet to meet the need for medium-haul jets servicing the growing aviation market in Indonesia, the world's fourth most populous country.

Shares in Airbus parent EADS were down 1.3 percent on Monday, roughly in line with a wider decline in France's benchmark CAC40 .FCHI index.

The landmark order includes 109 A320neo and 64 A321neo planes - with the neo designating the newest fuel-saving type of the narrow-body jets - as well as 60 A320 "classic" planes.

While below a recent peak, airplane demand remains robust as airlines and lessors modernize fleets in a bid to drive down fuel costs, while emerging markets continue to grow strongly.

(Reporting by Julien Ponthus and Tim Hepher. Writing By Alexandria Sage and Christian Plumb; Editing by Mark John and Mark Potter)

[endure]

Does it say what engines they're using?

[Chicog]

Not yet, they say "The carrier will announce engine selections for the aircraft in the near future."

[Mosha]

Interesting as Lion Air are the major share older in Malindo Air/Airways. They are using Boeing 737-900ERs there. Initially 2 Lion Air's 737-800s

[Chicog]

They must be growing at a rate of knots!

http://www.bbc.co.uk/news/business-15786293

[endure]

As long as they specify Rolls Royce

[Chicog]

As long as they specify Rolls Royce

Just me, but they might not want exploding engines.

[RabC]

Doesn't stop them being banned from the EU. Personally the only Indonesian Airlines I would fly are Garuda and Air Asia Indonesia

http://ec.europa.eu/transport/modes/air/safety/air-ban/index_en.htm

[Chicog]

Well I wasn't planning on flying them, but now you've pointed it out....

In January 2012, the Transportation Ministry said that it sanctioned Lion Air because some of its pilots and crew members were found in recent months to be in possession of crystal methamphetamine. In late 2011 Muhammad Nasri and two other co-pilots were arrested at a party in Tangerang; and in early 2012 a pilot was caught in possession of crystal meth in Makassar. On 4 February 2012, another Lion Air pilot was arrested following a positive urinalysis test for use of methamphetamine; he was scheduled to fly on Surabaya-Makassar-Balikpapan-Surabaya flight hours later.

Gumph!

[RabC]

Flying High.......................???????

[folium]

Doesn't stop them being banned from the EU. Personally the only Indonesian Airlines I would fly are Garuda and Air Asia Indonesia

http://ec.europa.eu/transport/modes/air/safety/air-ban/index_en.htm

All fine & dandy but travelling round Indonesia means that Garuda and AA are rarely options. Of the Indo airlines Lion is the most reliable with the newest planes. Far more preferable than a dodgy Latin American or almost any African airline, and don't even mention the ex-Soviet republicystans.

[Lakegeneve]

Just wondering what this has to do with travel in Thailand??? Should it not be moved ot the SE Asia Travel forum?

I flew Lion a couple of times prior to the EU ban, they were fine. Haven't flown them since. I'd be surprised if Lion end up taking delivery of the full amount of planes in both the Boeing and Airbus orders. Good for a bit of publicity but I'm not sure of soundness of their expansion model in the context of Indo LCCs.