Indonesia’s Lion Air to Buy 230 New Boeing 737s in $21.7b Deal

[jetjockey696]

Nusa Dua. Indonesia’s Lion Air has agreed to buy 230 Boeing 737 aircraft with a list price of $21.7 billion, the White House said on Thursday, touting the sale as the US firm’s biggest-ever commercial order.

The deal was announced soon after President Barack Obama touched down in Bali for the East Asia summit on the final leg of a regional tour partly aimed at drumming up markets for US products at a time of slow growth back home.

The White House also highlighted other deals, some already announced, including the sale of eight Boeing 777 planes to Singapore Airlines and an order for Sikorsky Black Hawk helicopters by Brunei’s Ministry of Defense.

Officials said the Lion Air order was for 201 Boeing 737MAX aircraft and 29 Next Generation 737ER planes.

“The President will join a signing ceremony between the representatives of Boeing and Lion Air on November 18,” a White House statement said.

“With 230 airplanes at a list price of $21.7 billion, this order represents the largest commercial airplane agreement ever for Boeing.”

Aviation Week reported on November 4 that Lion Air, Indonesia’s largest privately-held carrier, was seeking new narrow bodied aircraft and was considering 737s and the European-made Airbus 320.

The White House also said that the deal included options for a further 150 aircraft valued at $14 billion, which could put the eventual deal at $35 billion.

Officials said that the deal would support 110,000 American jobs at Boeing and at suppliers throughout 43 American states, at a time of 9.0 percent unemployment which is clouding Obama’s 2012 reelection prospects.

The White House also highlighted another big Boeing deal, the sale of eight 777-300ER jets to Singapore Airlines worth $2.4 billion which will support a further 11,000 US jobs. That contract had already been made public.

Indonesia’s Garuda Airlines meanwhile has signed a contract to buy 50 CFM56 General Electric engines worth $1.3 billion, the White House said..

And Sikorsky will sell Brunei 12 Blackhawk S-70i helicopters worth $325 million, the White House said, adding that the total value of all the deals was $25 billion.



Agence France-Presse 17th Nov 2011

[captplaystation]

Depending on the speed of deliveries it will be interesting to see who is going to fly them.
Ryanair have no problem expanding like crazy & always have bums on (front) seats, but that is Europe, & this assuredly is not.

[jetjockey696]

The deal, for 201 737 MAXs and 29 737-900 ERs, bolstered Obama's strategic decision to orient the struggling US economy with booming markets in emerging Asia, which he sees as an engine of US jobs growth for years to come.

Obama officiated at the signing of papers sealing the deal between Boeing and Lion Air, a low-cost regional carrier, before plunging into a day of diplomacy with Southeast Asian leaders on the last leg of a Pacific tour.

Boeing spokesman Wilson Chow said the sale underscores the strength of the aviation market in the fast-growing Asia-Pacific region.

"According to our outlook, Asia-Pacific is one of our fastest growing markets areas... We're expecting a seven percent growth of traffic per year for the next 20 years," he told AFP.

He declined to give a timeframe for delivery of the aircraft, but noted that the 737 MAX will only be ready for delivery in 2017.


Craig West from Britain-based Airliner World magazine said he suspected the deal was a generational affair.

"This could be over a very long period of time, so that when the last batch begins to be delivered, the first batch are already so old that they are put out of service," he told AFP.



AFP

[captjns]

Whose gonna fly the new shiny jets?

[PT6A]

Jns.. Lion have no problem.... They have people PAYING them to fly the aircraft... Both FO's and CAPTAINS :yuk:

[Gligg]

I guess the only people not buying a seat onboard are flight attendants? Imagine their annual report - Flight crew in the revenue column!

[PT6A]

I dont know where Lion plan to use all these aircraft.. Outside of Indonesia their plans of expansion are limited due to the EU ban and the fact the push other states to join in... Even India banned Lion from entering its airspace.

One thing that caught my eye and sent a shiver down my spine... Lion are doing RNP! They were / are using illegal coppies of Jeppesen plates...

The list of rules / laws that airline violates everyday is... Well words fail me.

PT6A

[captjns]

PT6A says..

Jns.. Lion have no problem.... They have people PAYING them to fly the aircraft... Both FO's and CAPTAINS http://images.ibsrv.net/ibsrv/res/src:www.pprune.org/get/images/smilies/pukey.gif

Yes... it just saddens:{ how many future children of the magenta line's parents are willing to pay for their offspring's dreams. The parents don't realize endorsing such a program they continue to bring the terms and conditions and the respect of our industry to now a lower level... which will, in the long run, affect their children too.