Boeing secures largest order ever with $22.4bn Lion Air deal

Posted on 14 Feb 2012 by Tim Brown
Next-Generation Boeing 737s line up nose-to-tail on a moving production line, speeding along at a rate of two inches a minute through the final assembly process

Boeing has finalised an order from Indonesia’s largest private airline, Lion Air, for 230 airplanes valued at $22.4 billion at list prices, setting a new single order record for the aircraft maker.

The deal, announced last November in Indonesia in the presence of U.S. President Barack Obama, also includes purchase rights for an additional 150 planes. The order calls for 201 Boeing 737 MAX aircraft and 29 Next-Generation Boeing 737-900ER aricraft.

Rusdi Kirana, Lion Air’s Founder and President Director said, “We’re excited to be the first airline in Asia to fly the 737 MAX and to be the global launch customer of the 737 MAX 9.”

The Next-Generation Boeing 737 flight deck is equipped with industry-leading display and flight management software that promise to reduce flight delays, and enhance safety and flight crew efficiency.
The Next-Generation Boeing 737 flight deck is equipped with industry-leading display and flight management software that promise to reduce flight delays, and enhance safety and flight crew efficiency.

Boeing decided to revamp the top-selling 737 last July in response to the plan by Airbus, a unit of European Aeronautic Defence and Space Co. or EADS NV, to revamp its A320.

The new Boeing 737 MAX competes with the Airbus A320neo in the narrow-body aircraft segment. The 737 MAX is due to enter service in 2017, while the A320neo, which also features new engines, is due to enter service in 2016.

Boeing has begun turning 737 MAX commitments into firm agreements as it works on finalising plans for the new fuel-efficient variant of its bestselling aircraft. Including the latest order, Boeing has orders and commitments for more than 1,000 airplanes for 737 MAX from 15 customers and the Next-Generation 737 family has won orders for more than 6,600 airplanes.

According to Boeing, Airlines operating the 737 MAX will see a 10-12% improvement in fuel efficiency today’s most fuel efficient single-aisle airplanes and a 7% operating cost per seat advantage over tomorrow’s competition.