Europe’s Airbus has landed a record order worth $18.4 billion at list prices from Indonesia’s Lion Air, the French presidency said on Monday, adding that the deal will create 5, 000 jobs in France over the next ten years, reports France 24.
In a sign of the rising importance of Asian budget carriers for high-tech manufacturing jobs, the deal was announced on Monday at a ceremony overseen by French President François Hollande.
The red-carpet event mirrors a record 201-plane order for equivalent Boeing aircraft from Lion Air signed in front of visiting U.S. President Barack Obama in late 2011, sparking European claims of U.S. political pressure which Washington and Boeing denied.
Lion Air founder Rusdi Kirana could not immediately be reached for comment.
Southeast Asia has emerged as one of the most fertile markets for popular medium-haul jets built by Airbus and Boeing, as rising incomes and a growing middle class boost air traffic.
Indonesia’s 17,000 islands and relatively robust economy, well insulated from Europe’s financial crisis, have made the world’s largest archipelago a magnet for aircraft sellers.
Its domestic aviation market, serving the world’s fourth largest population, is growing at 21 percent annually.
Reuters reported last week the two leading jetmakers were scrapping over a potentially rapid new order from Lion Air.
French newspaper Les Echos reported in its early Monday edition that the order, for over 200 Airbus jets, would include many of the newest fuel-saving type of A320, worth $100 million each.
Read more of this report from France 24.