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

[flee 5]

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.

 

Source

Edited November 17, 2011 by flee

[lionel 0]

wow~! 230 boeing 737s??!

[flee 5]

Most of it is for the Max which will only be available after 2017. So they might be replacing their older planes.

[Gavin Andrew David 6]

bombshell indeed!

they seem to be doing particularly well!

[BC Tam 2]

Officials said the Lion Air order was for 201 Boeing 737MAX aircraft .....

One can only speculate upon significance of that number as compared to the 200 units of A320neo ordered by Air Asia just a few months ago

[Samuel Chy 0]

A vs. B again? haha

[zamim 0]

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.

 

Source

 

SQ is going big on B777-300. In fact all other major aperators TG, CX And EK are getting B777-300. What about MAS/MH? MAS management

is still clueless what to do.

[alberttky 0]

SQ is going big on B777-300. In fact all other major aperators TG, CX And EK are getting B777-300. What about MAS/MH? MAS management is still clueless what to do.

 

MAS Management: Apa itu B777-300????

[flee 5]

Not sure how many B744s are om regular use by MH now. With 6 A380s coming in the next 15 months, is there a need for large aircraft? How will MH be able to fill up those planes on secondary routes? Even if there are such routes, how many B77Ws should MH buy? Not much point buying only 2 or 3, is there?

[Hakan 2]

I really curious, what they do LionAir with 230 planes? is there a large market that would be need 230 planes in Indonesia? More than 22Billion dolars orders seems like really huge budget for Indonesia. Meanwhile, we have to congratulate to Obama about his successful "special marketing".He is working like as a Boeing "sales men"

 

Are they Air Asia still flying over Indonesia or decrease operation?I mean is AirAsia get back from Indonesia market?

Edited November 18, 2011 by Hakan

[BC Tam 2]

MAS Management: Apa itu B777-300????

And if left to their own devices, will probably be sold on specs for the 'original' 777-300

SQ, TG, EK also using them mah

(and also pay 777-300ER prices !)

[Isaac 0]

I really curious, what they do LionAir with 230 planes? is there a large market that would be need 230 planes in Indonesia?

Indonesia is home to more than 230 million people after all. So i guess they see the potential there and just want to plan early. Besides, these planes ordered may be used for their overseas expansion/venture too.

 

 

Are they Air Asia still flying over Indonesia or decrease operation?I mean is AirAsia get back from Indonesia market?

And. They still are and just about to get even bigger.

[alberttky 0]

Are they Air Asia still flying over Indonesia or decrease operation?I mean is AirAsia get back from Indonesia market?

 

Air Asia has just been given Terminal 3 at CGK... so yes they are well and truly growing.

[ivanindra 0]

I really curious, what they do LionAir with 230 planes? is there a large market that would be need 230 planes in Indonesia? More than 22Billion dolars orders seems like really huge budget for Indonesia. Meanwhile, we have to congratulate to Obama about his successful "special marketing".He is working like as a Boeing "sales men"

 

Are they Air Asia still flying over Indonesia or decrease operation?I mean is AirAsia get back from Indonesia market?

 

Not only Indonesia has a big potential in the aviation market, Lion also already have permit to operate in Vietnam, Thailand, and some other countries in South East Asia. I think it would create somekind of regional airline competing head to head with AirAsia. Indonesian population is close to 280 millions.....I don't think 230 planes are such a big number.

[BC Tam 2]

So true - with the promised ASEAN open skies rapidly dawning, the more proactive ones will be planning not just for the 'local' market only but regionally

I believe there is to be no stopping say Vietnam Airlines operating on KUL-SIN vv for example ?

If true and total liberalization does take its course though, expect to see a few falling by the wayside, either through adherance to dinasour mentality or over ambitious exuberance

Hopefully, consumers benefit overall

[dean hizudy 0]

Lion Air New Venture To Be Called Space Air

 

Nov 21, 2011

 

 

 

 

By Leithen Francis

 

Lion Air’s new full-service carrier, Space Air, appears set to launch in 2012.

 

Industry executives familiar with the situation say the Indonesian carrier has applied for an air operator’s certificate for the new full-service carrier. The new airline will operate Boeing 737s, Lion Air President Director Rusdi Kirana said in a local report. Lion Air executives told Aviation Week that Rusdi wants the new premium outfit to compete head to head with Garuda Indonesia and that the move is partly a response to Garuda’s Citilink’s moving into the low-cost carrier (LCC) market.

 

Rusdi is also aware that in Indonesia there is relatively little competition in the premium segment. Garuda is the country’s only premium airline, so margins are higher.

 

“In Indonesia there is a large, wealthy population. There are a lot of Indonesians that simply will not fly a LCC. So he sees there’s a lot of business that goes to Garuda,” says an industry executive who has leased aircraft to Indonesian carriers. “There’s also a lot of wealthy Indonesians who fly Singapore Airlines (SIA) when traveling internationally, and that is why SIA still has a first-class cabin on its Jakarta route,” adds the executive. SIA charges $1,300-1,600 for a first-class, roundtrip ticket for Jakarta-Singapore, a 90-minute flight.

 

Lion has plenty of 737s it can use for this new business because on Nov. 18 it agreed to order 201 Boeing 737 MAX aircraft and 29 737-900ERs. Before this agreement, Lion had 114 737-900ERs and 12 Boeing 737-800s on order, according to Boeing’s figures. A Boeing spokesman declines to say if any of the aircraft from the earlier order will be canceled as a result. “This is an agreement to order. Boeing and Lion Air are [still] working to finalize the details,” says the spokesman.

 

Some industry executives say the new deal will replace some of the earlier aircraft orders. There is no way Lion can make use of 143 new 737-900ERs on top of the 52 it has already taken, they say. Signing a new aircraft deal with Boeing enables Lion to delay aircraft deliveries and take the more fuel-efficient 737 MAX, so it can remain cost-competitive, they add.

 

source:Aviation week

[JuliusWong 0]

December 16, 2011

Indonesia's Lion Air aims to dominate the domestic market of the world's fourth most populous nation, piling pressure on flag carrier Garuda Indonesia and regional carrier Air Asia which also operates locally.

 

Lion Air's chief executive Rusdi Kirana told a media briefing on Friday that the recent order of 230 Boeing 737 passenger jets, valued at nearly USD$22 billion at list price, is "binding" and "cannot be cancelled".

 

"We expect to have 60 percent domestic market share in the next two years because by the next two years we would have doubled our fleet from today's level," Kirana said on the sideline of the inaugural flight of its carrier from Singapore to Indonesia's second largest city Surabaya.

 

The new aircraft will allow Lion to reach farther to other metropolitan cities in Asia and Kirana is aiming to capitalise on the Southeast Asian open sky policy, which will come into effect in 2015, to expand its footprint in the region.

 

"With open sky happening in 2015, I can fly to any point in Asia," Kirana said adding that he is looking to use Singapore as a base to reach other destinations in Asia, such as Beijing.

 

For more: http://news.airwise.com/story/view/1324036808.html

Edited December 16, 2011 by JuliusWong

[flee 5]

If I remember correctly, they are still on the EU's blacklist whereas AirAsia Indonesia and Garuda have been removed from it. They need to work on that if they want to be taken seriously.

[YOD1 0]

I never trust LION, they're aggresive, so aggresive that they forget the service. LION is an abbreviation of "Late is our name".

Delay, delay, delay, just ask the passenger, is 1 hour for lion considered a delay? No, it isn't. New airplane, old service, bad service. I prefer Sriwijaya Air though. Old airplane, new service, good service.

[Alan B. 5]

I bought a return trip with Lion once, the outgoing flight was so delayed and uncomfortable that I bought a GA ticket for my return. I rather loose the money I paid for the 2nd flight than fly with them.

[Christopher Lim 0]

Lion Air New Venture To Be Called Space Air

 

Nov 21, 2011

 

 

 

 

By Leithen Francis

 

Lion Air’s new f......

source:Aviation week

 

 

What a bad name!! Lion air still ok. wings air fine..space air??? no consultant in indonesia is it? maybe we malaysian should step in...after all we have many sultans of con.

[flee 5]

Lion Air eyes more jets for growing SE Asia market

 

PARIS, Sept 25 (Reuters) - Indonesia's Lion Air may add more jets to recent plane orders in order to keep pace with Southeast Asia's transport growth as a U.S. analyst said the airline may place a multi-billion-dollar order with Europe's Airbus.

 

Lion Air co-founder and chief executive, Rusdi Kirana, said on Tuesday that Southeast Asia's double-digit increase in air travel demand, spurred by economic growth and rising incomes, was set to continue.

 

"We think that in the next decade we will need a lot of aircraft," he told Reuters in a telephone interview. "The market is growing very fast. We are looking, but it depends on pricing and many other factors. We are talking, but we have not made any decisions."

 

U.S. aerospace analyst Scott Hamilton said however, that Lion Air was poised to order up to 100 Airbus jets, breaking Boeing's dominance at Indonesia's largest domestic airline.

 

Orders of 100 aircraft would be worth approximately $9 billion at list prices for 150-seat jets like the Airbus A320 or Boeing 737, but airlines usually negotiate steep discounts.

 

Officials with Airbus could not immediately be reached for comment.

 

Lion Air shot to attention in late 2010 when a provisional order for 230 Boeing jets got high billing during a visit to the world's fourth most-populous nation by U.S. President Barack Obama, eager to play up the importance of U.S. exports.

 

Confirmed in February this year, the record deal took Lion Air's order book to more than 400 planes, which it aims to use to fly across the Asia-Pacific region.

 

Bolstered by export credits from Western producing countries, airlines in emerging markets have been placing significant bets on air travel in a region where passenger growth outpaces that of developed nations despite some spillover from Europe's debt crisis.

 

Indonesia's average annual passenger growth is 21 percent, according to Lion Air.

 

If confirmed, a deal between Lion Air and Boeing's arch-rival could be seen as a turning point after a series of orders that lifted the airline to be one of Boeing's top customers.

 

Airbus, a subsidiary of EADS, and Boeing, have been locked in a fierce price fight for much of this year, often halving official list prices to take or defend market share, according to multiple industry sources and analysts.

 

Jakarta-based Lion Air competes with one of Airbus's largest customers, AirAsia of Malaysia, which has itself confirmed plans to order another 100 Airbus jets in addition to a total of 375 already ordered, of which 100 are now in service.

 

Lion Air this month also announced plans to challenge AirAsia by setting up a new, low-cost airline based in Malaysia as Southeast Asia's growing middle class fuels demand for cheap flights.

 

The new carrier, Malindo Airways, will begin flights between Indonesia and Malaysia next May with a fleet of 12 Boeing 727 aircraft, which it plans to expand to 100 planes within a decade, Kirana said when announcing the launch.

 

Lion Air meanwhile, says it is in talks with Boeing to buy 10 787 Dreamliners worth $1.9 billion to tap the long-haul market. The plan would extend an initial deal in June to buy five 787 Dreamliner passenger jets.

 

Source: http://www.reuters.c...E8KP02620120925

[Amirul Mazlan 0]

placing same amount of golden eggs in two baskets?

[Adrian M 0]

Lion Air Boeing 737-8MAX by Colin Moeser, on Flickr

 

Photo Credit: Colin Moeser.

Sneak peek on Lion Air's first 737-8 MAX. Time goes by so fast it seems like just yesterday JT received their PK-LFF 737-900ER with Dreamliner livery.

Edited August 3, 2016 by Adrian M

[Tamizi Hj Tamby 1]

Wonder if they planning to transfer some of the MAX to OD.