Economy

Boeing Closes $22.4 Billion Deal With Lion Air

An artist rendering depicts a Boeing 737 MAX 9. Lion Air of Indonesia has agreed to become the first commercial customer for the plane.

An artist rendering depicts a Boeing 737 MAX 9. Lion Air of Indonesia has agreed to become the first commercial customer for the plane. Boeing hide caption

itoggle caption Boeing

When your products sell for more than $80 million, selling one of them is a big deal. Selling hundreds of them in one deal means they're probably feeling pretty good over at Boeing right now. The aircraft company has finalized a deal to sell 230 jets to Lion Air of Indonesia, with a total list price of $22.4 billion — a record for Chicago-based Boeing.

The deal, which was first announced in November during President Obama's multi-country tour of Asia, includes 201 737 MAX jets and 29 of Boeing's extended range 737-900ERs.

When the sale was first agreed upon, Boeing rival Airbus Industries "accused the United States of applying political pressure to secure the deal," as Reuters reports.

In a statement, Boeing touts its plane's ability to lower fuel costs: "Airlines operating the 737 MAX will see a 10-12 percent fuel burn improvement over today's most fuel efficient single-aisle airplanes and a 7 percent operating cost per seat advantage over tomorrow's competition."

The sale, which will be paid off over a 12-year period, according to the AP, gives Boeing a needed boost in its competition with Airbus. Last year, the European aircraft maker reported more than 1,400 plane orders, driven by demand for its fuel-efficient A-320 aircraft.

In contrast, Boeing sold only about 800 aircraft last year.

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