Indonesia's largest privately owned carrier Lion Air is negotiating with Airbus and Boeing for the purchase of around 60 narrowbodies in a deal that could partially be funded by new foreign investors.

Lion Air says Airbus and Boeing have submitted bids for 60 aircraft for delivery from next year, but it is still negotiating price with the manufacturers and a winner may be selected by the end of this month.

The Airbus A320 family is pitched against a mix of Boeing 737-800s and the proposed 737-900X, says the airline. Lion Air signed a loose non-binding memorandum of understanding for 40 737-900Xs earlier this year that could be converted into a firm order as part of its acquisition of new narrowbodies.

"We hope to get the aircraft as soon as possible in the first quarter of 2006," says the carrier, adding that if it chooses Boeing some 737-800s would be delivered in early 2006, but the new 737-900X would only be available from late 2006.

LEITHEN FRANCIS/SINGAPORE

Source: Flight International