Lion air makes largest ever order from Boeing
The United States has announced a massive order for Boeing jets from Indonesia’s largest domestic airline, Lion Air, to be showcased as US President Barack Obama winds up an Asia-Pacific tour.
The sale of 230 short-haul 737 jets, worth $ US21.7 billion at list prices, is the largest commercial order in Boeing’s history, toppling a previous record set just days ago as the industry taps in to relentless demand in emerging economies.
The order is also a boost for Boeing’s efforts to develop a revamped version of its best-selling 737 to compete with a model produced by its European rival Airbus.
The deal from Lion Air, Indonesia’s largest private carrier, included orders for 29 Next-Generation 737-900 extended range planes and 201 of Boeing’s new 737 MAX, an updated version of its best-selling model.
The company said the 201 orders for the 737 MAX were included in previously announced commitments for 700 of the planes, which are due to enter service in 2017 equipped with fuel-efficient engines.
The Lion Air deal includes options for another 150 aircraft valued at $ US14 billion, bringing the potential total value to $ US35 billion, although big plane orders tend to come with significant discounts.
Boeing said the Lion Air order, when finalized, would be its largest ever “by both dollar volume and total number of airplanes.”
The plane maker said strong customer demand was driving its plans to raise production over the next three years. “As a result of that increase, we will definitely be adding many more jobs,” Boeing spokesman Doug Alder Jr. said without giving a specific figure.
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Bank Indonesia Wants E-Money Watchdog
As Indonesians increasingly use their cellphones to make purchases and conduct banking transactions, Bank Indonesia is calling for regulators to monitor the industry and guard consumer safety, the central bank said on Thursday.
More mobile-phone operators, from Telkomsel to Indosat and XL Axiata, now allow users to make transactions with their phone credits.
“In theory, this trend is good for the economy,” said Ronald Waas, an accounting and payment director at the central bank. “It boosts bank transactions.”
The problem, he said, is how people tend to think about the transaction.
“I’m concerned about the way people see it,” he said. “[Phone credits] can’t replace money; there is a rigid definition of what we call money.”
“People who make payments with mobile phone credits are bartering. We have to be careful how we should regulate it.”
E-money is not a new concept in Indonesia. Since 2006, banks have offered electronic savings systems that allow customers to transfer money, shop in certain stores and pay for bills, tolls, airport taxes and even parking.
Bank Mandiri, Bank Rakyat Indonesia, Bank Central Asia, Bank Negara Indonesia and Bank Mega have implemented such systems.
The number of e-money users has surged from 400,000 in 2007 to about 11.3 million in August, up 43 percent from a year earlier.
