Joined Nov 11, 2007
31,929 Blog Posts

Airbus Wins a Key Contract With Lion Air Over $BA Who Has Been the Long Held Supplier

“Airbus SAS won an order from Indonesia’s PT Lion Mentari Airlines for 234 planes worth $24 billion at list price, giving the European planemaker entry into a market that competitor Boeing Co. (BA) has long dominated.

The order, announced at a ceremony this morning at the French presidential palace in Paris, includes current-generation A320s as well as planes from the newer A320neo series. Customers typically buy planes at discounts.

The Indonesian carrier needs more aircraft as it adds flights in a region where air travel is expected to grow more than 6.4 percent annually through 2031. Lion Air, which flies to more than 36 destinations within Indonesia and overseas, is establishing a low-cost carrier in Malaysia to challenge AirAsia Bhd. (AIRA), Airbus’s biggest A320 customer.

“We’ve always wanted to be a big player in Indonesia, a country of 17,000 islands and 240 million people,” John Leahy, chief salesman of Airbus, said in a telephone interview as the order was announced. “Boeing’s been dominant there for a long time and I think it’s important that in using planes like the A320neo we’re able to break into that market.”

The Asian airline had already signed a record order with Boeing for 230 additional 737s in February last year. That deal was worth $22.4 billion at list prices. The purchase, which also included 150 options, was Boeing’s biggest in dollar value and plane numbers at the time.

Major Orders

Full article

If you enjoy the content at iBankCoin, please follow us on Twitter