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Indonesia's Lion Air to Buy Boeing 787s for New Premium Unit

By Doug Cameron Boeing Co. (BA) said Friday that Indonesia's Lion Air had committed to acquire 787 Dreamliner aircraft for a new full-service airline unit, just as rivals focus on establishing separate no-frills operations. Lion Air is already one of Boeing's largest customers and has ordered hundreds of its new-generation 737 single-aisle planes for domestic and regional operations. The fast-growing carrier plans to establish a new unit called Batik Air that would use twin-aisle 787s alongside the smaller 737s earmarked for flights to other parts of Asia and Australia. Boeing didn't detail how many Dreamliners Lion Air planned to order for the new unit, though recent industry speculation said the companies were discussing a deal involving 10 of the fuel-efficient aircraft. Closely held Lion Air wasn't immediately available for comment. Local media reports said the carrier aimed to launch Batik Air in 2013. Though Boeing has a huge backlog for its 787, Lion Air's orders may provide it with leverage to gain early delivery spots. However, it is likely the carrier would have to wait several years before securing Dreamliners to launch longer-haul routes to Europe and North America in competition with Garuda Indonesia (GIAA.JK), the country's flag carrier. -Write to Doug Cameron at doug.cameron@dowjones.com.

Stock News for Boeing (BA)
DateTimeHeadline
05/23/201307:50:08Boeing Scores China Clearance for Dreamliner
05/23/201303:41:12China Regulator Grants Airworthiness Certificate for Boeing 787s...
05/22/201311:10:48Boeing Sees Five-Year Lead Over Airbus in Twin-Aisle Jets
05/22/201311:00:12Boeing Plans To Return 80% Of Cash To Shareholders
05/20/201317:08:14United Airlines' Boeing 787 Lands in Chicago After First Revenue...
05/17/201313:50:14MARKET SNAPSHOT: U.S. Stocks Rise Toward Fourth Week Of Gains
05/16/201308:41:57Latam Airlines to Resume Operating Boeing 787s in 'Coming Days'
05/15/201312:21:34Southwest Airlines Lifts Dividend, Share Buyback Authorization
05/15/201311:29:23EU Approves LOT Polish Airlines Rescue Loan
05/15/201309:10:57Pilot Error May Have Contributed to Lion Air Crash in Indonesia
05/14/201304:52:11Correction to EADS Earnings Outlook Story
05/14/201304:40:27Air India to Resume Dreamliner Operations
05/14/201304:30:13Air India to Resume Dreamliner Operations Wednesday
05/14/201303:40:04EADS Outlook Unchanged but A350 Program Is 'Challenging'
05/10/201305:00:15Iberia Restructuring Pushes IAG to Wider Loss
05/09/201319:31:08Air Lease 1st-Quarter Net Up 49% as Rental Revenue Jumps; Shares...
05/09/201318:03:35Washington Governor Makes Pitch to Retain Boeing Work
05/09/201310:41:10Jet Airways Likely to Order 200 Planes From Boeing, Airbus
05/09/201304:43:41China Southern Shelves Talks With Air China for Joint A380 Flights
05/09/201302:20:11ANA Resuming 787 Fleet Services on June 1

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