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Airbus-Boeing battle shifts to Indonesia

25 Mar 2013 09:40:12

channelnewsasia.com

JAKARTA: A new rivalry between the world's biggest planemakers is heating up in Indonesia after a record deal for Airbus in a market with huge potential that until now has been a "fortress" for Boeing.


The European company in the past consistently lost contracts to its US rival in Southeast Asia's top economy, but budget carrier Lion Air's 18.4-billion-euro ($23.8 billion) order last week for 234 medium-haul Airbus jets may be a game-changer in the feud for market share.


"This is a major deal for Airbus because, generally, Indonesia has been a fortress for Boeing," Ravi Madavaram, an aerospace analyst for Frost & Sullivan in Kuala Lumpur, told AFP.


"I think the moment Airbus comes into the picture, more and more low-cost carriers will want an Airbus A320. Then it becomes challenging for Boeing to catch up."


Read full story: channelnewsasia.com

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