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Boeing signs largest-ever commercial airplane order with Lion Air

Officials watch a new Lion Air Boeing 737-900 ER series passenger jet during its official launch in Jakarta.
Officials watch a new Lion Air Boeing 737-900 ER series passenger jet during its official launch in Jakarta.

By msnbc.com news services

Boeing said Tuesday it has signed its largest ever commercial airplane order with Indonesian carrier Lion Air in a deal worth $22.4 billion.

Boeing said Lion Air, Indonesia's largest carrier by passenger volume, has ordered 230 airplanes, including 201 737 MAXs and 29 next-generation 737-900 ERs. Lion Air will also acquire purchasing rights for an additional 150 airplanes, the plane maker said.

Boeing will deliver the planes after it has started its construction, which is planned for 2017, said company spokesperson Mark Hooper.

Richard Aboulafia, vice president of analysis at the Teal Group, a firm providing consulting services in the aerospace industry, said he doesn’t expect the large order to produce a large number of new jobs at Boeing.

“This won’t increase the production rate [at Boeing], it will sustain it,” he said.

However, airline deregulation in the Asia Pacific region, which is bringing cheap, affordable airfares to the area, is leading to tremendous growth opportunities, Aboulafia said.

“We are starting to see the Southwest effect in Asia, which is wonderful,” he said.

Reuters contributed to this report.