Stephenson Harwood is advising Lion Air, Indonesia’s largest carrier, on a record $21.7 billion order for 230 Boeing 737 aircraft.
The order, which includes 201 of Boeing's new 737 MAX aircraft, broke the weeks-old record set by Emirates Airlines,which placed an order for 50 Boeing aircraft 777 worth $18 billion earlier this month. The Lion Air deal also deal includes purchase option rights for another 150 aircraft, which could potentially take the total value of the order to $35 billion.
The Stephenson Harwood team was led by Paul Ng, Stephenson Harwood's head of aviation who was assisted by David Hon and Martin Green in Singapore, and David Lacey in London.
“We are delighted to be assisting Lion Air on this history-making order. Lion Air is one of the fastest growing airlines in the world and this order signals the continuing rise of Asian aviation,” said Ng in a statement. Stephenson Harwood added in a release: “The sheer size of the transaction, the fact that it involved a model of new aircraft still in development stages and a very long delivery stream required the legal/commercial teams on the transaction to address difficult issues of risk allocation seldom encountered on smaller transactions.”
Lion Air, which operates 92 planes, currently has an all-Boeing fleet comprising various 737 models and MD-90 jets. Prior to this deal, it had 126 single-aisle Boeing jets on order. The latest order followed a $14 billion deal signed in 2008 with Boeing for 178 737-900s, which will be delivered in stages until 2016.
As it expands rapidly, Lion Air plans an initial public offering next year to raise more than $1 billion through the sale of a 20-30 percent stake. It aims to fly to China, India, South Korea, Japan and Australia.
The order was signed over the weekend in Bali, Indonesia, and overseen by U.S. President Barack Obama. Obama noted that the single order would create more than 100,000 jobs in his country’s aviation industry. ALB
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