ATR, jointly owned by EADS and Finmeccanica, has signed a deal with Indonesian Lion Air to supply 15 ATR-72500s, French Economy Minister Christine Lagarde has said.

A Lion Air spokesman said the carrier had exercised an option of a $650m deal, signed in 2009, for the supply of 30 planes and is part of its ambitious expansion plans.

As per the original contract, the planes would be delivered in 2012-2013 with the first lot of 15 scheduled for delivery this year.

Lion Air unit Wings Air will use the additional planes to serve short routes.

Turboprops are more efficient than jets for flying short distances, especially when fuel prices are high.