US Ex-Im Bank Approves $1.1b Loan for Lion Air’s Boeing Purchase
(The Insider Stories) – The United States Export-Import Bank announced Wednesday it has approved a final commitment of $1.1 billion to help finance the export of a fleet of Boeing 737-900ER aircraft to Lion Air, a low cost carrier and the biggest private airline in Indonesia.
The aircraft with CFM International engines will be delivered to Lion Air, its Malaysian unit, Malindo Airways, and its full-service carrier, Batik Air.
“Ex-Im Bank is pleased to support part of Lion Air’s historic purchase order of Boeing extended-range aircraft. This is a tremendous opportunity for American exporters and will help to sustain thousands of jobs in the U.S. aerospace industry for years to come,” Ex-Im Bank Chairman and President Fred P. Hochberg said in a statement.
The approval marks the final commitment of a preliminary offer of financing that the bank approved in 2011.
The financing will support part of Lion Air’s outstanding orders for B737-900ER, which include an order of 230 Boeing 737 aircraft made in November 2011, the largest commercial aircraft order in aviation history.
“We’re proud that Lion Air has put its faith in the 737-900ER by being the launch customer and largest operator of the type,” said Dinesh Keskar, senior vice president of Asia Pacific and India Sales at Boeing Commercial Airplanes.
“Lion Air recognizes the business value and success that comes from investing in a quality, U.S.-built product. Ex-Im Bank’s financing support allows us to compete on the merits of our product and not be disadvantaged by financing offered by our competitors.”
Headquartered in Jakarta, Lion Air provides passenger service throughout Indonesia and to other countries in Southeast Asia and Saudi Arabia. The region covered by the Association of Southeast Asian Nations has more than 550 million people and is among the fastest-growing aviation markets in the world.
Lion Air President and CEO Rusdi Kirana noted, “This substantial final commitment reinforces the invaluable relationship that we enjoy with the U.S. Ex-Im Bank and positions the Lion Group and Transportation Partners for future growth across the ASEAN region.”
