Indonesia’s discount carrier Lion Air is likely to place a large order for Airbus jets in a multi-billion dollar deal that could be announced as early as Monday, according to people familiar with the situation.
One of them said Lion Air may order about 200 single-aisle A320 jets, which cost US$91.5 million each for the current version and US$100.2 million each for the upcoming next-generation new-engine option that burns less fuel.
The total order value may reach US$20 billion at list prices, although airlines typically extract discounts of over 30% on large orders.
Lion Air, Indonesia’s top local carrier by number of passengers, is already among the biggest customers of Airbus rival Boeing Co. (BA) and turboprop plane maker ATR, a joint venture of European Aeronautic Defence & Space Co. and Finmeccanica SpA’s unit Alenia Aermacchi SpA.
Last year, it handed both Boeing and ATR their largest single orders on record–ordering 230 Boeing 737 jets valued at US$22.4 billion at list prices, in addition to 15 Boeing 787 ‘Dreamliners’ at a list price of US$3 billion, and 27 ATR 72 turboprop planes worth US$610 million.
Lion Air’s President Director Rusdi Kirana couldn’t be reached for comments.
French financial newspaper Les Echos reported Monday that the deal will be signed in the Elysee Palace in the presence of President Francois Hollande.
Mr. Hollande’s office said an event with Airbus will take place at 11 a.m. but gave no details.