Indonesia's Lion Air near to deal for 10 Boeing 787s

[jetjockey696]

Indonesia's Lion Air is close to signing a deal for 10 Boeing 787-8 Dreamliner passenger jets, with a total list price of $1.9 billion, as the budget carrier aims to tap the long-haul market.

Two sources involved in the deal told Reuters that Lion Air prefers the newer carbon-composite Boeing Dreamliner over the Airbus A330. The deal is expected to be signed in Jakarta on June 8 as Lion Air celebrates its 12th anniversary.

Such a move by Lion Air would put more pressure on Garuda Indonesia Tbk and Malaysia's AirAsia Bhd because it would be able to serve a broader range of destinations.

Lion Air's founder and chief executive Rusdi Kirana said in February the Indonesian low-cost carrier was in negotiations with Airbus and Boeing to buy Airbus A330s or Boeing 787 Dreamliners.

Lion Air was not immediately available for comment. A Boeing spokeswoman declined to comment.

One of the sources said the Dreamliner will help Lion Air's marketing campaign with an image of fuel efficiency and the latest technology.

"Dreamliner is a new design, it is based on the latest technology, while the A330 is basically an old (design)," said one of the sources, who declined to be identified because of the confidentiality of the talks.

If the financing terms from both manufacturers are equal, he said, Lion Air will choose the Dreamliner over the A330.

The deal, once finalised, would mean Boeing managed to keep Airbus away from its top customer. Lion Air recently signed a record order for $22.4 billion worth of Boeing 737 single aisle jets.

Reuters...

[TheRedBaron01]

Nice. Now they have an even bigger plane that they can run off the end of the runway.

One of these days these planes are going to get old and actually need maintenance. Or they are going to face an actual in flight emergency, and everyone on board is going to be screwed because the CA doesn't know how to do anything outside of normal ops when the plane isn't flying itself.

[skypirate2u]

787's

Where they going to fly them to...anyplace other than Asia has locked them out.

[captjns]

These yahoos have been announcing orders for the past 3 years. Which insurance company is going to step up to the plate and insure the new toys??? AIG!?!

Grandiose plans of long haul to no where... That plane will make a bunch of money for them. Oh wait??? never mind. Post in this thread when and if an air frame arrives on the property with Lion Air's colors on it.

[PT6A]

JNS,

As much as they are yahoos... The biggest insurances companies still insure them, and Boeing still sell to them.

[captjns]

Boeing does not care who insures the product once in the hands and ownership of any operator. Liability and hull insurance is not as easily purchased in amounts as the owners would like, thus part of the risk is self insured, which can also cause the rates to increase even if the deductible amount for reimbursement has not been utilized.

[PT6A]

Boeing and the US Government set everything up for Lion in terms of helping them pony up the money for these aircraft....

So really the US should shoulder some of the blame if they then go out and kill a bunch of people with them!

[captjns]

That's why the "Hold Harmless" clause contained within contracts and or codicil addenda.

[av8r76]

I guess non liability clauses are well and good. But to have a dodgy operator with dodgy crews bending metal, or worse still, taking lives, can't be good publicity for Boeing products.
Even in these forums, we debate AvsB based on hull losses, incidents, etc. What makes us think that the general public won't hear about aviation news based not just on airlines but aircraft types as well.
If Boeing is doing it just for the money (I can hear a chorus duhs) they aren't keeping their reputation in mind.

[Meathead Pilot]

Actually, Lion air has good training policies and practices in place. Thanks to boeing! But real bad hiring policies!