Airline company Lion Air signed Wednesday a memorandum of understanding with aircraft manufacturer ATR for an order of 10 ATR 72-500 aircraft and an option on another 10.

Signed during the opening of the four-day Indo Defense and Aerospace Expo and Forum at the Halim Perdanakusumah Air Force Base in Jakarta, the deal is worth more than US$380 million including the extra options.

The twin-turboprop, 72-seat aircraft will be operated by Lion Air's subsidiary Wings Air as a feeder service to Lion Air's Boeing 737-900ER twin jets.

"With our brand new fleet of ATR 72-500s, we will able to develop a strong low-cost network, feeding Lion Air's major hubs," Lion Air CEO Rusdi Kirana said in a press statement.

ATR CEO Stephane Mayer said the deal would "increase our presence in the expanding Indonesian market and continue the growth of our large fleet in Southeast Asia which has become a booming market in the last three years".

With the arrival of ATR 72-500s, Wings Air will discontinue the operation of its McDonnell Douglas MD-82 and DHC-8-300 fleets.

Wings Air's ATR 72-500s are powered by higher power rated PW 127 engines driving six-blade propellers and will be equipped with the Elegance cabin incorporating the latest developments in passenger amenities and comfort.

The Franco-Italian aircraft manufacturer claims that all ATR models are compliant with noise regulations and have a large margin with regard to Chapter IV (ICAO) noise limits. -- JP/Novan Iman Santosa

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