Planemaker Touts 56-Plane Lion Air Deal
Thank goodness for the
737. Even as Boeing faces increasing heat from customers over
delays to its newest aircraft, the upcoming 787 Dreamliner, the
planemaker was able to tout the latest accomplishments of its
oldest aircraft family at this week's Singapore Air Show.
Indonesian carrier Lion Air, a loyal 737 customer, announced
orders Tuesday for another 56 737-900ERs -- a $4.4 billion (list)
order that will bring that airline's 737-900ER fleet to 178 planes
by 2015, making it by far the largest operator of the
long-fuselage, long-legged narrowbody.
"The Next-Generation 737 is the right airplane for our airline,
our customers and our growing route structure," Kirana said. "Lion
Air is committed to growing its fleet with fuel-efficient, reliable
and technologically advanced aircraft, while offering its
passengers the best service and lowest fares in the market."
Boeing launched the 737-900ER program in July 2005 when Lion Air
announced the initial order for 30 planes.
The 737 order was by far the best news Boeing has received this
week in Singapore, but it wasn't the only bright spot. Reuters
reports Garuda Indonesia announced plans to convert its standing
order for six Boeing 777-200s to 10 777-300ERs, a deal worth over
$2 billion at list prices. Garuda also altered a previous
unidentified order for seven 737-800s placed in 2007, and announced
that it has converted 18 of its existing 737-700s on order to
737-800s and six 777-200ERs on order to 777-300ERs.
The planemaker also touted an announcement by Q Aviation, for an
unspecified number of 767-300 Boeing Converted Freighters.
Notably absent from the order tallies, however, is Boeing's
hot-selling 787 -- a plane that has racked up over 800 orders in
four years, but has yet to make its first flight. The aircraft's
development program has been delayed over nine months... and
customers are definitely starting to grouse about it.
International Lease Finance Corp (ILFC), the world's largest
aircraft leasing firm, told Reuters the company will seek large
compensation from Boeing for the delays to its order for 74 jets,
the first delivery of which is now pushed out to late 2010 or early
2011.
"We've put Boeing on notice that there will be some very serious
talks," said Steven Udvar-Hazy, the outspoken CEO of ILFC. When
asked if his company will seek compensation from Boeing for the
delays, Hazy replied "Definitely, on a large scale."
The ILFC chief also noted his customers are increasingly
disgruntled over the delays, with 15-20 of ILFC's 787 orders
impacted by the delay. "It's not only the impact on us, it's the
impact on our leasee -- the airlines," Hazy said.
Those statements come as ILFC ponders 100-plane orders for both
Boeing and its European rival, Airbus. Arguably, Boeing is at the
disadvantage in those negotiations with ILFC, due to the Dreamliner
delays. Of course, it wasn't that long ago Udvar-Hazy was slamming
Airbus, for delays to its A380 superjumbo and upcoming A350 XWB...
but Boeing's the one making headlines now.
Randy Tinseth, Vice President of Marketing for Boeing Commercial
Airplanes, acknowledged the planemaker is in a position where it
has to show positive results, soon... but stopped short of
promising the current 787 development schedule is set in stone.
"We really feel for our customers, we hate missing those
commitments," said Tinseth. "We are now in a position with our
suppliers where parts are manageable, so we have a confidence in
our plans. But it's not going to be easy."