Lion Air Buying 50 Boeing 737 Jets In $6.2b Deal

Indonesian carrier looks to cash in on a transport boom in the south-east Asian nation

Jakarta: Indonesia’s Lion Air is buying 50 Boeing 737 MAX 10 aeroplanes in a deal valued at about $6.2 billion (Dh22.7 billion), the firms said Tuesday, as the carrier looks to cash in on a transport boom in the south-east Asian nation.

The new single-aisle plane is the latest incarnation of Boeing’s 737 MAX series, which can accommodate between 130 and 230 passengers and fly up to 7,130km, the companies said in a statement.

The order — the largest to date for the MAX 10 — was valued at $6.24 billion, although multi-plane deals tend to end up costing carriers less than list prices.

The firms said the newest plane, which is to be delivered from 2020, “will be the most fuel-efficient and profitable single-aisle jet in the aviation industry”.

The Indonesian carrier, which started less than 20 years ago with just one plane, stunned the sector in 2013 when it announced two of the world’s largest aircraft orders in a monster $46 billion deal.

At the time, Lion agreed to buy 234 medium-haul A320 jets worth some $23.8 billion from European aerospace giant Airbus, after a $22.4 billion deal for 230 Boeing planes.

Founded in 1999 by brothers Kusnan and Rusdi Kirana, Lion Air is the first private airline in Indonesia, a sprawling archipelago nation that has struggled with a spotty air safety record.

With some 260 million people, Indonesia is the world’s fourth most populous nation with more than 17,000 islands and is home to south-east Asia’s biggest economy.

The country has a burgeoning middle class which is keen to abandon travel by bus, ferry and train and instead take to the skies for holidays and family visits.

Loading...
RECENT NEWS

BNY Mellon Lands A Big Ally For Expansion In Saudi Arabia

NCB Capital is the kingdom's biggest asset manager and investment bank Read more

Coronavirus, Low Oil Prices Set To Speed Up Gulf Bank Mergers

Moody's Investors Service says financial concerns in the region will play a larger role in encouraging deals Read more

Abu Dhabi Fund Buys $750m Stake In Retail Arm Of Indian Giant Reliance

Subsidiary of the Abu Dhabi Investment Authority will buy a 1.2% stake in Reliance Retail Ventures Read more

How The Lebanese Private Sector Is Coping In The Eye Of A Storm

Businesses extremely pessimistic about future as layoffs continue and wages plummet Read more

Lebanese Pound: The Most Undervalued Currency In The World

As political and economy chaos ensues, leading analyst says exchange rate needs sorting 'as soon as possible' Read more

How Coronavirus Is Changing Banking For The Better

Redefining finance for good: Virtual CXO Forum to take place on October 7 Read more