European aircraft manufacturer giant, Airbus, finally landed a massive deal from Indonesian budget carrier Lion Air for 234 of the popular narrow-bodied Airbus A320, a contract potentially worth US$24 billion.
Lion president director Rusdi Kirana signed the deal with Airbus president and CEO Fabrice Bregier during a ceremony witnessed by French President Francois Hollande at the Presidential Palace. President Hollande’s office called the deal with Lion Air “the biggest for Airbus in terms of the number of aircraft and the overall sum”.Rusdi explained that the order consisted of 109 Airbus A320 NEO, 65 Airbus A321 NEO and 60 Airbus A320 CEO.
NEO, which stands for new engine option, offers a better range and improved fuel economy when compared to the CEO or current engine option.
“These aircraft will be used for two new Asia Pacific region airlines we plan to have by 2014,” Rusdi told Indonesian reporters over breakfast in Paris, France.
“The first six airplanes will be delivered in 2014.”
He also said that Lion included the A321 model in the order but had yet to decide how many it would purchase or what engine configuration it desired.
“We have one year before delivery to tell Airbus what configuration we want,” he said.
It was previously reported — by French newspaper Les Echos early on Monday — that Airbus and Lion would announce an order of 200 narrow-body A320 later that day.
The huge order marks a major shift in Lion’s procurement strategy, which until recently only used narrow- and wide-body Boeing aircraft. The low-cost carrier’s inventory includes Boeing 737 classic series, 737-800 and 737-900ER narrow-body aircraft as well as two Boeing 747-400 wide-body aircraft that ply routes to Saudi Arabia.
Lion also ordered Boeing 787 Dreamliner.
“These aircraft will be used for two new Asia Pacific region airlines we plan to have by 2014,” Rusdi told Indonesian reporters over breakfast in Paris, France.
“The first six airplanes will be delivered in 2014.”
He also said that Lion included the A321 model in the order but had yet to decide how many it would purchase or what engine configuration it desired.
“We have one year before delivery to tell Airbus what configuration we want,” he said.
It was previously reported — by French newspaper Les Echos early on Monday — that Airbus and Lion would announce an order of 200 narrow-body A320 later that day.
The huge order marks a major shift in Lion’s procurement strategy, which until recently only used narrow- and wide-body Boeing aircraft. The low-cost carrier’s inventory includes Boeing 737 classic series, 737-800 and 737-900ER narrow-body aircraft as well as two Boeing 747-400 wide-body aircraft that ply routes to Saudi Arabia.
Lion also ordered Boeing 787 Dreamliner.
The airplanes would be the initial 787-8 version and go to Batik Air, Lion's newly launched premium carrier. The airplanes are worth $967.5 million at list prices.
In a statement Friday, Boeing said it "congratulates Lion Air for selecting the 787 Dreamliner and looks forward to finalizing this order."
In a statement Friday, Boeing said it "congratulates Lion Air for selecting the 787 Dreamliner and looks forward to finalizing this order."
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