Indonesian carrier buying up to 60 737s
By JAMES WALLACE
SEATTLE POST-INTELLIGENCER AEROSPACE REPORTER
Having been soundly whipped by Airbus last year in orders from key low-cost airlines in Europe and in Asia, The Boeing Co. today will add to what has become a remarkable turnaround in winning new business in this important market segment.
Lion Air, a low-cost Indonesian airline that hopes to expand operations in Southeast Asia, will sign a preliminary agreement with Boeing in Washington, D.C., for up to 60 of its 737s, according to people familiar with the deal.
Deliveries would begin next year once a firm contract is negotiated.
At list prices, a 60-plane order would be worth about $4 billion. But Boeing, which last won the annual order battle with Airbus in 2000, has been offering significant discounts to customers this year as it racks up victories over its bitter rival.
So far in 2005, Boeing has 188 firm orders for its 737s.
To meet the surge in orders, Boeing is planning a second production line at its Renton plant and is expected to eventually boost production there to a record 31 planes a month, up from about 24 a month now.
The preliminary agreement between Boeing and Lion Air will be signed during a state visit to Washington by Indonesia’s president. Representing Boeing will be Dinesh Keskar, vice president of jetliner sales who is responsible for Asia.
Lion Air was also considering Airbus jets.
The deal with Lion Air, while an important order for Boeing, also brings the company closer to development of another model of its next generation 737 family.
Boeing and Lion Air must still work out the mix of planes the airline will take, but Lion Air hopes to be the launch customer for the yet-to-be-built 737-900X, according to sources familiar with the matter.
Lion Air also will take 737-800s as part of the eventual order.
By: US Agent - 28th May 2005 at 03:55
With the playing field being leveled now with regards to pricing…it appears Boeing has regained the advantage. 😎
By: Bmused55 - 27th May 2005 at 19:34
Rumors say that the Boeing pricing has become more competitive. 😉
read replies 5 and 6. Already covered.
By: seahawk - 27th May 2005 at 17:42
The 737NG is on a roll and is enjoying some well earned success lately.
Just shows that these things come and go like a see-saw.Though I beleive the recent successes are due to the reorganisation of Boeing as a whole. Ever since they got Stonecipher back… Boeing has been getting steadily more aggressive. And now they have a new head salesman its seems to be paying off, even without Stonecipher now.
I said it last year that “Now that Boeing has a new CEO expect a more aggressive sales pitching”.
I told ya’ll so 🙂
Rumors say that the Boeing pricing has become more competitive. 😉
By: Grey Area - 27th May 2005 at 17:28
Nice to see irony isn’t a lost art in here……. :rolleyes:
By: Bmused55 - 27th May 2005 at 17:21
Not at all, far from it.
I just wish you would cease with your crusade against Airbus-fans.
I am all for Boeing winning orders against Airbus, and likewise the other way round. It makes me not an Airbus nor a Boeing fan but a fan of promoting business.
The is no crusade here, or any other place.
Don’t have a clue what you could be refering to.
By: KabirT - 27th May 2005 at 15:33
Great news for Boeing and it 737 programme. 🙂
By: Bmused55 - 27th May 2005 at 15:25
As yes, the crusade for all-things Boeing, the dark-side being wrong and humble to thy-feet…something like that 😀
Selling an aircraft is one-thing, supporting it is another…
what are you jibbering on about?
You trying to make this an AvB issue?
By: Bmused55 - 27th May 2005 at 14:08
What do you want? A gold medal for being right? :dev2:
Not really.
Perhaps to have all the nay-sayers eat humble pie 😉
By: Bmused55 - 27th May 2005 at 10:52
Either that or they’ve started to sell them cheap 😉
Just kidding. Great news for Boeing.
With all the modifications they’ve done to the assembly line, speeding it up and the just in tme parts delivery… they may well be able to sell them cheaper now and still make good profits.
So you could be right.
however… the price of the aircraft is only one consideration… much more too it 🙂
By: 4 engines good - 27th May 2005 at 10:49
The 737NG is on a roll and is enjoying some well earned success lately.
Just shows that these things come and go like a see-saw.Though I beleive the recent successes are due to the reorganisation of Boeing as a whole. Ever since they got Stonecipher back… Boeing has been getting steadily more aggressive. And now they have a new head salesman its seems to be paying off, even without Stonecipher now.
I said it last year that “Now that Boeing has a new CEO expect a more aggressive sales pitching”.
I told ya’ll so 🙂
Either that or they’ve started to sell them cheap 😉
Just kidding. Great news for Boeing.
By: DME - 27th May 2005 at 10:47
Good news for Boeing.
I see an opening here, I’m going to start project xxx in my shed. Expect designs by mid next week.
Book price for my 180 seat aircraft is £10640 – should sell like hot cakes……..
dme
By: Bmused55 - 27th May 2005 at 10:19
The 737NG is on a roll and is enjoying some well earned success lately.
Just shows that these things come and go like a see-saw.
Though I beleive the recent successes are due to the reorganisation of Boeing as a whole. Ever since they got Stonecipher back… Boeing has been getting steadily more aggressive. And now they have a new head salesman its seems to be paying off, even without Stonecipher now.
I said it last year that “Now that Boeing has a new CEO expect a more aggressive sales pitching”.
I told ya’ll so 🙂
By: Shadow1 - 27th May 2005 at 04:26
Boeing is having a very good year thus far and I hope it continues. I could see a large war to win contracts develop over the next few years between the two major aircraft manufacturer. It will make for interesting threads as the rumors come closer to reality and as contract talks are finalized!
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May 26, 2005 at 7:33 pm