Lion Group set to buy ATR planes in nearly $1 billion deal - source
Reuters
Published Nov 27, 2014 02:01AM ET
Lion Group set to buy ATR planes in nearly $1 billion deal - source
By Anshuman Daga SINGAPORE (Reuters) - Indonesia's Lion Group is expected to sign a deal on Thursday to buy about 40 ATR 72-600 aircraft for nearly $1 billion at list prices, a source familiar with the matter said on Thursday.
The order is part of a strategy by Lion Air, one of the world's fastest-growing airlines, to use turboprop planes in remote locations in Indonesia and Malaysia.
Despite rival airlines deferring orders, Lion co-founder Rusdi Kirana is pushing forward with expansion plans and placing new plane orders to serve Indonesia's rapidly growing consumer class, as well as to compete with Malaysia's AirAsia.
The former travel agent captured international attention when he announced record purchases of jets from Boeing and Airbus over the past few years. Airlines usually get large discounts from manufacturers at list prices.
The source declined to be identified as he was not authorized to talk about the order. Officials from ATR and Lion Group had no immediate comment.
ATR is co-owned by Airbus group and Italian industrial conglomerate Finmeccanica. It competes for turboprop sales with Canada's Bombardier.
Lion previously ordered 60 ATR aircraft and has taken deliveries of just over 40 planes. Turboprop aircraft fly more slowly than jets, but their lower fuel consumption means they are increasingly popular in growth markets such as Southeast Asia and Latin America.
(Editing by Stephen Coates)
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Written By: Reuters
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