The order, worth 18.4 billion euros, was finalised at a special ceremony at the Elysée Palace in Paris.
French President Francois Hollande described the deal as "historic" and said it would create 5,000 jobs in France over the next 10 years.
Lion Air's order comprises of 109 A320neo, 65 A321neo and 60 A320ceo aircraft.
"The fuel-efficient A320 Family will enable Lion Air to achieve the lowest possible operating costs and continue to offer the most competitive fares in the Asian region," said Rusdi Kirana, Co-Founder and CEO of Lion Air Group. "This landmark order will ensure that the Lion Air Group will continue its expansion with one of the most modern and advanced fleets in the world."
"This announcement marks our first order from Lion Air - one of Asia's fastest-growing and most successful low cost carriers," said Fabrice Brégier, President and CEO, Airbus. "The news underscores the market-leading position of the A320 Family, which continues to attract new customers for both the current and new engine options. We very much look forward to welcoming Lion Air as a major new operator of Airbus aircraft."
Southeast Asia has emerged as one of the world's top markets for medium-haul planes as rising incomes and a growing middle class have significantly boosted air travel.
Lion Air was founded by Kusnan and Rusdi Kirana, who are ranked the 33rd richest Indonesians.
Jakarta-based Lion Air has become one of Asia's fastest-growing airlines.
Image: © Airbus
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