Planemaker ATR to sign nearly $1bn order with Lion Air
European planemaker ATR is expected to sign Thursday an order for 40 of its 72-600 aircraft with Indonesian airline Lion Air, valued at nearly $1 billion based on catalogue prices, according to a source close to the deal.
The contract will bring to 100 the number of ATR 72-600 propeller-driven planes ordered by Lion Air, which will become the planemaker's biggest client.
ATR is co-owned by European aircraft manufacturer Airbus Group and Italy's industrial group Finmeccania.
The contract is set to be signed later Thursday in Rome at a ceremony attended by Italian Prime Minister Matteo Renzi.
Lion Air CEO Rusdi Kirana said in Rome that the new order of 40 planes would be delivered between 2017 and 2019, Indonesian news website Bisnis.com reported.
The fast-growing airline Lion Air uses the propeller-driven planes for regional flights among the islands comprising Indonesia and Malaysia. They can land on shorter runways than jets.
Kirana also pointed to the 72-passenger plane's suitability for travel in the sprawling Indonesian archipelago with small airports and short landing strips.
"This is a modern plane with economical fuel usage," Bisnis.com quoted him as saying.
© 2014 AFP