Boeing bags largset ever order with Lion Air deal

by Tiffany Millar on November 18, 2011

Aircraft manufacturer Boeing has bagged its largest commercial order, after penning a deal worth $21.7bn with Indonesia’s Lion Air.

Indonesia’s biggest private carrier has an order for at least 230 short-haul 737s with an additional option for a further 150 aircraft, valued at $14bn, also included in the deal. The announcement comes days after Boeing revealed a deal with Emirates for 50 of its 777 planes that come to a combined total of $18bn.

The American planemaker said that Lion Air’s order will be its largest ever when finalised by dollar volume and the total number of airplanes that have been requested. The robust growth of the economies of Asian countries in recent years has brought the rise of more affluent middle classes in the region.

As they have higher disposable incomes, Asian consumers have used air travel for visiting other countries on the continent and in their homeland. Analysts said that the huge order from Lion Air is an indication that Asia is going to be the premier driver of growth over the coming years.

Randy Tinseth, Boeing’s marketing vice president of its commercial airplanes, said in a statement that something has changed over the last two decades as, in 1990, 72 per cent of demand came from Europe and North America. Now, this figure has dropped closer to 5 per cent and will be just 40% by 2030.

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