Airbus wins Lion Air order
EUROPE’S Airbus had landed a record order, potentially worth $20 billion at list prices, from Indonesia’s Lion Air, smashing rival plane-maker Boeing’s grip on one of the world’s fastest-growing airlines, sources said on Sunday.
In a sign of the rising importance of Asian budget carriers for high-tech manufacturing jobs, the deal was set to be announced yesterday at a ceremony overseen by French President Franciois Hollande, the sources said, asking not to be named.
EADS subsidiary Airbus declined to comment.
France had said earlier Hollande would meet Airbus chief executive Fabrice Bregier on Monday to celebrate “a major industrial deal”, but withheld further details.
The red-carpet event mirrors a record 201-plane order for equivalent Boeing aircraft from Lion Air signed in front of visiting US President Barack Obama in late 2011, sparking European claims of political pressure by the US, which Washington and Boeing denied.
The sources said the Airbus A320 order from Lion Air, which was founded by travel entrepreneur Rusdi Kirana, could top that number.
Kirana could not immediately be reached for comment on the deal.
Southeast Asia has emerged as one of the most fertile markets for popular mediumhaul jets built by Airbus and Boeing, as rising incomes and a growing middle class boost air traffic.
Indonesia’s 17,000 islands and relatively robust economy, well insulated from Europe’s financial crisis, have made the world’s largest archipelago a magnet for manufacturers of aircraft.
Its domestic aviation market, serving the world’s fourthlargest population, is growing at 21 per cent annually.
Reuters reported last week that the two leading aircraft manufacturers were scrapping over a potentially rapid new order from Lion Air.
The French newspaper Les Echos reported yesterday that the order, for more than 200
France said Hollande would meet Airbus chief executive Fabrice Bregier to celebrate
a major industrial deal
Airbus jets, would include many of the newest, fuel-saving type of A320, worth $100 million each.
Although below a recent peak, the demand for aircraft remains robust as airlines modernise their fleets to drive down fuel costs and growth in emerging markets continues almost unchecked.
But there have been suggestions that growth is cooling, prompting some carriers to buy aircraft, then decide to lease them out.
In deals totalling $35 billion, Germany’s Lufthansa last week ordered 102 Airbus and Boeing jets, Turkish Airlines picked up 82 from Airbus and Ireland’s Ryanair is expected to sign for 170 Boeings.
These values represent official prices, but in practice strategic airlines win significant discounts for big orders.
The Lion Air order marks at least the third attempt by Airbus to woo Lion Air, long seen as a fortress for Boeing.
It is likely to throw the spotlight on an intense battle for market share between the two biggest plane-makers.
It is also likely to add zest to a regional battle for supremacy between Lion Air and AirAsia, the low-cost carrier founded by Malaysian entrepreneur Tony Fernandes.
Lion Air is about to start up a domestic Malaysian rival to AirAsia, which has long been exclusively an Airbus operator, and some industrywatchers have warned of a potential price war.