Indonesian Carrier Orders $24 Billion in Jets From Airbus
Despite the bad economy globally, an Indonesian low cost airline, Lion Air is growing at a very fast pace. On Monday, Airbus the air plane manufacturer announced that Lion Air is placed an order for $24 billion worth of new jets. The deal is the single largest deal that Airbus has ever dealt with. Both parties gain from this deal, Lion Air will be able to expand their business which already flies to 70 different locations while controlling 45 percent of the domestic market and Airbus benefits from the sale of their single aisle jets. The rapid expansion of Lion Air will create at least 5000 new jobs over the next 10 years. The profiting and expanding airlines such as lion Air is a sign of some economic recovery.
The rapidly growing airline industry is an example of the recovering economy. Over 5000 jobs will be created over the next 10 years through this deal alone. The increasing price of gas makes it costly for airline companies to make trips; but the $24 billion worth of new jets will be fitted with more fuel-efficient engines that make it more cost efficient for airline companies to fly.
Written by: Wilson Tang