Lion Air and Transportation Partners request Ex-Im for 737s

This story is sourced from

Lion Air and Transportation Partners requested yesterday US Export-Import Bank guarantees to support Boeing 737 aircraft.

The support is intended for "Lion Air, Batik Air, Malindo Airways and/or Transportation Partners", according to the export credit agency's minutes on the 6 December meeting.

Transportation Partners negotiates on behalf of the Lion Air for all its financings, including sale and leasebacks and strategic investments.

The aircraft leasing and advisory vehicle was approved by Singapore's economic development board earlier this year.

The financing request comes on the heels of the launch of Lion Air's two new airlines next year. New premium carrier Batik Air will commence operations in the third quarter of 2013 with Boeing 737-900ER aircraft.

The launch date of Malaysian carrier Malindo Airways has been brought forward two months to March 2013, with Boeing 737-900ER aircraft to form the cornerstone of its business model.

Five Boeing 787-8 aircraft originally intended for Batik are now going to Malindo, which is a joint venture between Lion and Malaysia's National Aerospace and Defence Industries (NADI). NADI will hold a 51% stake in the new carrier and Lion will hold 49%.

Malindo will operate 12 737-900ERs by the end of 2013 and will receive an additional 12 in both 2014 and 2015. In 2015, it will receive five Boeing 787-8s, bringing its total fleet to 41 aircraft by the end of 2015.

Batik is targeting a fleet of 100 aircraft within 10 years.

Lion Air has orders for 333 Boeing 737 aircraft, including 201 of the re-engined Max variant, and five Boeing 787-8s, due to be delivered through to 2024.

Lion will receive 24 aircraft next year.