Indonesia’s Lion Air has placed a firm order with Airbus for 234 A320 Family aircraft, comprising 109 A320neo, 65 A321neo and 60 A320ceo. The deal sees the carrier become a new customer for Airbus. The order was finalised today at a special ceremony at the Elysée Palace in Paris in the presence of President François Hollande of France, who witnessed the signing of documents by Rusdi Kirana, Co-Founder and CEO of Lion Air Group and Fabrice Brégier, President & CEO, Airbus. In a single class layout the A320 can seat up to 180 passengers, while the A321 can carry up to 236 with the latest cabin configuration options. Lion Air Group will use the aircraft to meet growth requirements on its expanding domestic and regional route network. The carrier will announce engine selections for the aircraft in the near future. “The fuel-efficient A320 Family will enable Lion Air to achieve the lowest possible operating costs and continue to offer the most competitive fares in the Asian region,” said Rusdi Kirana, Co-Founder and CEO of Lion Air Group. “This landmark order will ensure that the Lion Air Group will continue its expansion with one of the most modern and advanced fleets in the world.”
On the other hand, Boeing is responding to international competition by announcing the agreement with Ryanair for the company to purchase 175 737-800NG:
Ryanair, Europe’s only ultra-low-cost carrier (ULCC), today (19 Mar) signed an agreement with the Boeing Company to purchase 175 new Next Generation 737-800 airplanes. When finalised, the deal will be worth nearly $15.6 billion at current list prices, and will allow Ryanair to grow its airline to more than 400 airplanes, serving more than 100 million passengers per year across Europe by the end of the delivery stream in 2018. The agreement was signed by Ryanair CEO Michael O’Leary and Boeing Commercial Airplanes President CEO Ray Conner in New York (19 Mar). Upon approval by Ryanair’s shareholders, the purchase will become Boeing’s largest deal to date in 2013 and will be the largest ever aircraft order from a European airline. It will sustain thousands of skilled manufacturing jobs in Boeing and its supplier companies and will represent the largest ever capital investment by an Irish company in U.S. manufacturing and U.S. jobs. These Boeing airplanes will create more than 3,000 new jobs for pilots, cabin crew and engineers at Ryanair’s growing number of aircraft bases across Europe. Approximately 75 of these new aircraft will replace some of Ryanair’s existing fleet of 305 737s, but the remainder will drive new growth of Ryanair’s fleet of young, highly efficient airplanes. These airplanes will allow Ryanair to grow its low-cost airline service by about 5 percent per annum over the next several years, taking Ryanair’s traffic to over 100 million passengers by March 2019.
More importantly, Airbus by establishing official commercial relations with Indonesia is sending a serious message about the future development of the global aviation industry:
With one of the world’s fastest growing airlines looking to tap into Indonesia’s booming air traffic demand, Airbus looks to be the immediate beneficiary. The company announced that it has received its biggest order ever. Indonesia’s budget airline Lion Air placed a $24 billion order for 234 A320 family aircraft – 174, of which, will be the newer, fuel efficient A320neo or the A321neo series. “The fuel-efficient A320 Family will enable Lion Air to achieve the lowest possible operating costs and continue to offer the most competitive fares in the Asian region,” said Rusdi Kirana, Co-Founder and CEO of Lion Air Group. “This landmark order will ensure that the Lion Air Group will continue its expansion with one of the most modern and advanced fleets in the world.”
Finally, in the effort to cover global demand for commercial airplanes, international aircraft producers are trying to produce new airplanes at an increased production rates. Additionally, they are trying to sign new agreements with airliners. Airbus and Boeing are giving a practical example today…