AFP
Posted on 05/25/2005 10:20:26 PM PDT by Righty_McRight
JAKARTA (Reuters) - Indonesian budget carrier Lion Air will buy 60 aircraft from Boeing Co. in a $3.9 billion deal that will help the young airline expand routes across Asia, a spokesman for the airline said on Thursday.
Hasyim Arsal Alhabsi said the deal was for firm purchases that covered Boeing's 737-800 and 737-900 series. Airlines can also take options for later purchases of planes.
Alhabsi said an agreement with Boeing would be signed in Washington during a visit this week to the United States by Indonesian President Susilo Bambang Yudhoyono. Boeing has said it would sign an agreement on Thursday.
"The number is 60," Alhabsi said, adding that the exact number of each version to be bought would be worked out later.
"In the contract, Boeing will come up with several financing schemes. It's up to us to pick which one. They will help us to find a way to finance this."
First deliveries would occur in early 2006, Alhabsi said.
Airbus SAS's A320 family of aircraft competes with Boeing's 737.
The spokesman gave no more details on the financing plan for privately owned Lion Air, which has made inroads into the local market with competitive ticket fares and flights to popular Indonesian destinations.
Alhabsi also declined to say who owned the airline, except that it was Indonesian.
"We want to use (the new planes) for new routes as well as replacing what we lease right now. We want to go to the region, Australia, India, China and Hong Kong," Alhabsi said.
Lion's current fleet comprised 38 aircraft, Alhabsi said, adding that around half of those were leased.
Following the deal, Lion Air might launch an initial public offering of its shares either next year or in 2007, he added.
The deal marks the first major move by any Indonesian airline to expand its fleet in recent years.
The local industry was hit hard by the 1997-98 Asian financial crisis, then suffered again during several years of political unrest and bomb attacks in Indonesia that cut into foreign tourist numbers.
However, many budget airlines have since started operating across the archipelago, competing hard with Indonesia's dominant, state-owned carrier, Garuda Indonesia.
Aviation trade publication Flight International reported last week that Lion Air had been negotiating with Boeing and Airbus for between 40 and 60 single-aisle airliners.
In a related development, Airbus announced plans to have a press release that announces plans to have someone possibly buy some airplanes from them sometime in the near or distant future. Maybe.
Is it just me or is Boeing going bonkers with sales lately? This is about the third or fourth I've seen in a couple weeks. First the Indians, than the French Freigh bunch, now this.
Wonder if it has anything to do with the strong Euro?
Yep! 80 to 100 737's on Wednesday alone! Plus another 50 to 80 of various types in the last two months I think.
More evidence that Airbus is losing it's Air.
Ping !
Boeing...American owned...American made...We have, still and will continue to kick A$$ in all things cutting edge.
Eat crap Euro swine...
God I love this country...
Wouldn't want to be taking Lion Air's check for that amount.
Airbus had a fantastic first quarter 2005, beating
expectations. Trend continues. It's just not posted here.
Instead of new, Lion should consider used.
Last time I looked, United stock was just
just over a buck.
For 3.9 billion, Lion could buy United Airlines...
and have about 3.8 billion left, for other things.
Check www.justplanes.com, its been a brutal 6 weeks for Airbus, and hence, glorious for Boeing. But as I said on another thread, look for Qatar/Emirates to bail Airbus out by the Paris Air Show as these airlines are too far up Airbus' ass to make a wise business decision...
But this story does not deal with Dreamliner (787) and neither did the last several.
According to justplanes.com, they already have 455 so far. They are about assured of hitting the 500 mark. So far this quarter, Boeing has 231 orders (not counting SALE that was just finalyzed, that order went on the books during the 1st quarter) and Airbus has...31. Brutal.
I heard that Boeing has a new sales staff and changed their way of approving their sales from the board of directors.
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