Airbus wins record $23.1 billion Indonesian order

[SeatBackForward]

Airbus wins record $23.1 billion Indonesian order

Biggest civilian deal in the history of Airbus ... CEO of Lion Air Rusdi Kirana of Indonesia, left, and CEO of Airbus, Frenchman Fabrice Bregier, right, with France's President Francois Hollande. Photo: AP

Europe's Airbus grabbed a record order worth $US24 billion ($23.1 billion) at list prices from Indonesian budget carrier Lion Air on Monday, shaking arch-rival Boeing's grip on one of the world's fastest-growing airlines.

...

Co-founder Rusdi Kirana said he would use the aircraft to start up new airline ventures underpinned by Asia's growth.

He also told Reuters in an interview that Indonesia's top domestic airline would aim for a stock market listing in 2015 after ditching the plan due to market volatility a year ago.

"What will I do with them? I will set up new airlines in other countries, in the Asia-Pacific region," Kirana said.
...

Airbus wins record $23.1 billion Indonesian order

 

[samh004]

I wonder if he's thinking of trying his luck in Australia, and if he is, it could bide well for VA picking up Tiger as there will be a new player with competition. All if of course.

 

[NM]

They place orders for B$20+ and all they receive as a "thank you" gift is a plastic model?

 

[Fruitcake]

They place orders for B$20+ and all they receive as a "thank you" gift is a plastic model?

The value of that plastic model probably exceeds Airbus' profit margin on the entire deal.

 

[markis10]

They place orders for B$20+ and all they receive as a "thank you" gift is a plastic model?

Given the big orders that Kingfisher walked away from, perhaps thats all its worth until the cheque clears? Not sure I am the only one who wonders how they will pay for all that metal.

 

[SeatBackForward]

Given the big orders that Kingfisher walked away from, perhaps thats all its worth until the cheque clears? Not sure I am the only one who wonders how they will pay for all that metal.

Just remember, even in a Banana Republic, someone will own a lot of bananas.

 

[markis10]

Just remember, even in a Banana Republic, someone will own a lot of bananas.

Normally said banana grower is not denied the right to fly in the EU and is denied IATA membership. and lets not forget the 22B banana commitment to Boeing from 2011!

 

[SeatBackForward]

Normally said banana grower is not denied the right to fly in the EU and is denied IATA membership!

Yes, well, bananas make for slippery landings.

 

[eastwest101]

Given the big orders that Kingfisher walked away from, perhaps thats all its worth until the cheque clears? Not sure I am the only one who wonders how they will pay for all that metal.

My guess is French/German taxpayers whom will be paying for all that metal, at "list" prices I suspect that EADS will be wearing a loss on this transaction (even if the cheque doesn't bounce) it is notable that the French President after signing the deal:

Hollande, whose approval ratings have sunk to around 30 per cent amid worries about unemployment, oversaw the deal before leaving for talks with German Chancellor Angela Merkel on further industrial co-operation modelled on Europe's planemaker.

Read more: Airbus wins record $23.1 billion Indonesian order
​

But by golly, an order of 234 A320neos and A321neos - where are they going to physically fit/fly them all?

 

[markis10]

But by golly, an order of 234 A320neos and A321neos - where are they going to physically fit/fly them all?

Added to the 330 737s on order......

 

[eastwest101]

Added to the 330 737s on order......

Yes - you don't need to be a soothsayer to see that this will eventually end in tears, its just a matter of if it is going to be Boeing or Airbus tears......

 

[codash1099]

My guess is French/German taxpayers whom will be paying for all that metal, at "list" prices I suspect that EADS will be wearing a loss on this transaction (even if the cheque doesn't bounce) it is notable that the French President after signing the deal:

Hollande, whose approval ratings have sunk to around 30 per cent amid worries about unemployment, oversaw the deal before leaving for talks with German Chancellor Angela Merkel on further industrial co-operation modelled on Europe's planemaker.

Read more: Airbus wins record $23.1 billion Indonesian order
​

But by golly, an order of 234 A320neos and A321neos - where are they going to physically fit/fly them all?

Have a look at the time period involved. With staged delivery and keeping a young fleet, the first ones delivered will be long gone by the time the last ones come along.

 

[Simo]

I bet the sales rep who sold the deal is going to have a nice little commission cheque in the bank account.

 

[elbarto]

Given the big orders that Kingfisher walked away from, perhaps thats all its worth until the cheque clears? Not sure I am the only one who wonders how they will pay for all that metal.

Paying for it? I can't even work out what they're going to do with 500+ planes.

 

[codash1099]

Paying for it? I can't even work out what they're going to do with 500+ planes.

That is, if you will pardon the expression, nonsense. There is no indication that they will have all 500+ at any one time.

 

[markis10]

That is, if you will pardon the expression, nonsense. There is no indication that they will have all 500+ at any one time.

Not nonsense at all, they are on record saying their fleet will number 600+ by 2025, by which time the oldest would be ten years which is resonable to expect. Am still puzzled as to how a company that is private backed by individuals with a net worth of $900M can finance $44B in aircraft!

 

[Flying Fox]

Totally amazed that Lion Air are buying 200 B737s + 234 A320s.

Wonder how they are going to pay for all of these?

 

[Must...Fly!]

It's Lion Air. The attrition rate of aircraft in to many thousands of pieces is relatively high, that should take care of a few airframes.....

 

[oz_mark]

Come back in ten years, and see how many were actually delivered......

 

[NM]

Perhaps they looked at their history or runway excursions and decided they need a few spares available?

Accident: Lionair B734 at Pontianak on Nov 2nd 2010, overran runway on landing
Incident: Lionair B739 at Pekanbaru on Feb 15th 2011, overran runway on landing
Incident: Lionair B739 at Pekanbaru on Feb 14th 2011, runway excursion on landing
Accident: Lionair MD90 at Jakarta on Mar 9th 2009, departed runway on landing
Incident: Lion B734 at Pontianak on Nov 1st 2012, overran runway on landing
Incident: Lionair B734 at Pontianak on Dec 30th 2012, runway excursion on landing