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Airbus, Lion set to announce order for 200 narrow-body aircrafts
European airframer giant Airbus and Indonesian budget carrier Lion Air are set to announce an order of 200 narrow-body aircraft A320 aircraft in Paris, France, later in the day, French newspaper Les Echos reported early on Monday.
It was reported that French President Francois Hollande will oversee the announcement ceremony of which details have yet to be revealed.
The huge order, potentially worth almost US$20 billion, marks a major shift in Lion’s procurement strategy, which until recently only included both narrow-body and wide-body Boeing aircraft.
In its inventory, the low-cost carrier (LCC) has a Boeing 737 classic series, 737-800 and 737-900ER narrow-body aircraft. Lion also operates two Boeing 747-400 wide-body aircraft for its Saudi Arabia routes. Lion has also ordered a Boeing 787 Dreamliner.
It is not yet clear whether the order would be a mix of Airbus A320 classics and the re-engined A320 NEO. NEO stands for new engine option, which offers better range and fuel economy.
Previously on Feb. 14 2012, Lion Air signed a contract to buy 230 units of Boeing 737’s consisting of 29 737-ERs and 201 units of the 737-9 MAX, Boeing's answer to Airbus’s A320 NEO.
The contract was signed at the Singapore Airshow in Changi, as a follow up to a memorandum of understanding (MoU) that was signed in Bali on Nov.18, 2011. The MoU was signed with the presence of US President Barack Obama, who attended the ASEAN Summit.
Lion's director of general affairs, Edward Sirait, refused to reveal any details until the announcement was made. He also said there was no change in Lion's procurement strategy, saying it would be better to have comparisons.
“While it is a must for budget aircraft to operate as efficiently as possible, it does not limit operated aircraft only to a single type,” Edward said over breakfast.
“What we are looking for is the efficiency.”
“I believe the limit is 50 units of the same type of aircraft. Beyond that, you have the liberty to operate other type of aircraft that also must meet the efficiency level,” Edward said.
Other than Lion Air, the Lion Group also flies ATR-72-500/600 twin turboprop aircraft for its Wings Air feeder airline. The company is set to launch its own full-service airline, Batik Air, later this month and is preparing its Malaysia-based joint venture, Malindo Air.
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