Aircraft

Indonesian carrier Lion Air is poised to take up to 20 ATR 72-500s for its Wings Air subsidiary after signing a memorandum of understanding with ATR.

As expected, Lion Air has inked a deal covering 10 ATR 72-500s plus 10 options. The proposed deal, which Lion Air president director Rusdi Kirana outlined to ATI earlier this month, was inked during the Indodefence air show in Jakarta.

Kirana says: "The reason we want these aircraft is for our feeder service to support our Boeing 737-900ER operations. With our brand new fleet of ATR 72-500s, we will be able to develop a strong low-cost network, feeding Lion Air's major hubs."

He adds that ATR's large support network, which includes a centre in Singapore, was an important factor in the selection.

ATR values the total contract at around $380 million and says deliveries of the aircraft are scheduled to begin next year. It adds: "These aircraft will be the first new ATR 72-500s to fly the Indonesian skies."

The manufacturer's CEO, Stephane Mayer, says: "Today's deal with Lion Air is very important for us in order to increase our presence in the expanding Indonesian market and continue the growth of our large fleet in southeast Asia, which has become a real booming market in the last three years."

Lion Air operates 37 aircraft. Its network includes domestic flights within Indonesia, as well as international links with Singapore, Penang, Kuala Lumpur and Ho Chi Minh City.

ATR is yet to reveal a launch customer for its -600 series, which is an upgraded version of the ATR 42-500 and 72-500.