Indonesia's Lion Air to buy 230 Boeing 737s
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As private carriers in India continue to suffer from bad business weather, Indonesia's Lion Air has scored what's being touted as Boeing's biggest-ever commercial order, ever.
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.
India turbulence
Back home in India Civil Aviation Minister Valayar Ravi ruled out a public bailout for Kingfisher Airlines or any other airline, urging private airlines in India to put their own house in order.
Cash-strapped Kingfisher Airlines, India's No.2 air carrier by market share, saw its quarterly loss double and cancelled scores of its flights this week.
The Centre for Asia Pacific Aviation also forecast a record $2.5 billion to $3 billion loss for Indian airlines for the year ending March 2012, with Air India alone likely to account for more than half of it.
"In India, the problem is the sales tax. Every state is making a major income from it for their exchequer. I requested chief ministers not to do that. Only two or three states including Kerala and Andhra Pradesh reduced it," Ravi said.
The Lion's share
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 per cent unemployment which is clouding Obama's 2012 reelection prospects.
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