Lion Air has signed a deal with Boeing to order 230 new aircraft. This is a huge move for the Indonesian budget airline and the deal is reportedly worth US $22.4 billion – the largest commercial aviation agreement in history.

Delivery of the new aircraft is expected to begin in 2017 and continue through 2026. This record-setting order includes 201 Boeing 737 MAX and 29 next generation 737-900ER aircraft.

Lion Air is Indonesia’s largest carrier by passenger volume and has already captured more than 50% of the domestic market.

Home to over 230 million and made up of thousands of islands, Indonesia is seen as an emerging economy and the demand for affordable flights is expected to grow rapidly in coming decades.

Lion Air, Indonesia’s largest private airline, launched a new route on Monday December 19, 2011, a direct route from Surabaya, East Java to Singapore.

“The launch demonstrates our commitment to developing domestic routes,” Lion Air director for general affairs Edward Sirait said.

Lion Air will fly daily from Surabaya at 8 a.m. local time and arrive in Singapore at 11:20 a.m. local time. In addition, it flies from Singapore at 12:10 p.m. and arrive in Surabaya at 1:30 p.m. Singapore time is one hour earlier than Surabaya time. Lion Air will fly a Boeing 737-900 ER aircraft on this route.

The company expects the new route to help boost the local tourism industry.

Indonesian budget airline Lion Air has revealed plans to head upmarket as part of its expansion plans.

Rusdi Kirana, the president director of Lion Air, announced plans to launch a premium airline called Space Jet in 2013. The new airline will start with operations in Indonesia and expand to other regions by the end of the year.

Lion Air currently holds 47% of the domestic market share in Indonesia and hopes to raise its dominance to 60% over the next two years. The airline recently placed orders for 230 Boeing 737 aircrafts worth US$21.7 billion which will be used to serve its domestic market.