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Boeing Signs Record Order From Lion Air for 737 Airplanes

February 15, 2012

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Feb. 14 (Bloomberg) -- Boeing Co. confirmed a 230-plane order worth $22.4 billion at list prices from Indonesian budget carrier PT Lion Mentari Airlines, setting a record for the planemaker.

The accord includes 201 of the planemaker’s in-development 737 Max and 29 extended range 737-900s, according to a PR Newswire statement. The airline also has an option to purchase an additional 150 aircraft. Lion Air is the launch customer for the 737 Max 9, according to the statement.

The order, provisionally agreed to in November, is the biggest for Chicago-based Boeing in terms of plane numbers and dollar value.

Boeing has begun turning 737 MAX commitments into firm agreements as it works on finalizing plans for the new fuel- efficient variant of its bestselling aircraft. The Lion Air order surpasses a Southwest Airlines Co. deal for 208 737s signed in December and comes about a month after a European record order for 122 737s from Norwegian Air Shuttle AS.

The Jakarta-based company expected to carry 27 million passengers last year, an increase of 30 percent, and it has forecast future growth of about 15 percent a year. It was operating or had orders for 178 of the existing versions of the 737 as of November, according to Boeing.

The 737 MAX aircraft, which is due to enter service in 2017, will pare fuel use and carbon emissions by as much as 12 percent compared with current single-aisle planes, according to the planemaker. It will use engines made by CFM International Inc., a venture between General Electric Co. and Safran SA.

Boeing announced the 737 MAX in response to Airbus’s plans to revamp its A320. The Toulouse, France-based planemaker’s new model, the A320neo, which also features new engines, is due to enter service in 2016.

Airbus booked about 1,420 orders and commitments for the planes within a year of its introduction, according to its website. The tally includes 200 from AirAsia Bhd., the region’s biggest budget carrier, and 180 from Indian airline IndiGo.

--With assistance from Femi Adi in Jakarta. Editors: Neil Denslow, Anand Krishnamoorthy.

To contact the reporter on this story: Kyunghee Park in Singapore at kpark3@bloomberg.net.

To contact the editor responsible for this story: Neil Denslow at ndenslow@bloomberg.net


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