SINGAPORE, Feb. 7, 2018 – Honeywell (NYSE: HON) signed the largest-ever auxiliary power unit (APU) contract in Asia Pacific in terms of fleet size with Lion Air Group, Southeast Asia’s largest airline group. Honeywell will supply the units and corresponding spare parts for the airline group’s fleet of Airbus A320ceo and A320neo aircraft in addition to spares for Lion Air Group’s Boeing 737NG and Boeing 737 MAX fleet.
The agreement covers 620 aircraft over 17 years and will offer Lion Air Group’s growing fleet an industry-leading APU with high reliability. Based in Jakarta, Indonesia, the Lion Air Group includes Thai Lion Mentari Co., Ltd., Malindo Airways Sdn Bhd, PT Batik Air Indonesia, and PT Batam Aero Technic.
“Lion Air Group is continually exploring innovative solutions to improve our aircraft efficiency and fleet availability as demand for air travel in the Asia Pacific region increases. Safety and air passenger comfort remain our utmost priority, and we are confident the performance of Honeywell’s 131 series of APUs will keep our flights on schedule and reduce delays and flight cancellations,” said Rai Pering, Director, PT Batam Aero Technic. “We are confident that our work with Honeywell will improve operational performance and lower maintenance costs over the life cycle of our fleet, and enable our continued success.”
According to a report from T2RL and Amadeus, the estimated cost of flight disruption to airlines is 8 percent of airline revenue, or $60 billion worldwide. One of the top 10 causes of disruption is mechanical and technical problems. Under the newly signed contract, Honeywell’s 131-9 series’ APUs, with their high reliability and ease of maintenance, will enable Lion Air Group to stay on schedule and ensure that passengers reach their destinations on time. APUs are compact aircraft engines located in the tail section of the aircraft that provide power for the electrical and environmental systems while the aircraft is parked at the gate, backup power during flight, and also used to start the main engines upon pushback from the gate.
“The largest-ever APU agreement in the Asia Pacific region marks a new era where Lion Air Group and other fast-growing, low-cost carriers are recognizing the value of high-quality equipment and maintenance services to enhance overall operational efficiency. The agreement comes at a critical time, when air traffic is set to increase in the region and the Asia Pacific maintenance segment is expected to nearly double by 2025,” said Brian Davis, vice president, Airlines, Asia Pacific, Honeywell Aerospace. “Indonesia is a key high-growth region for Honeywell, and it is imperative for low-cost carriers and full-service airlines to improve on-time performance and their bottom line to remain competitive in this dynamic segment through effective, safe and reliable aircraft solutions.”