Virgin Blue joins the big league
BRISBANE – Virgin Blue Group has formally signed an agreement with Boeing for up to 105 new 737 aircraft.
The transaction has been in negotiation for nine months and its completion constitutes the biggest aircraft order in Virgin Blue’s 10-year history and the Boeing Aircraft Company’s largest order in the past 18 months.
Delivery is scheduled from June 2011 through to 2017
A significant percentage of the aircraft is intended for replacement of the existing narrow body fleet, while the remainder will be deployed to new routes and to boost frequency where demand dictates.
Virgin Blue chief executive, Brett Godfrey, said, “Securing this agreement now places Virgin Blue in a strong position to prepare for steady future growth as domestic and short haul markets recover.â€
The aircraft will be delivered with Boeing’s new sky interiors with inclusions such as newly designed seats and IFE which will complement Virgin Blue’s ‘Airline of the Future’ initiative to be rolled out during 2011.
Brett Godfrey added, “Virgin Blue was fortunate to see the opportunity and be in a position to take advantage, of the downturn in the market as we did back in 2001, to secure long term future supply of aircraft on attractive commercial terms.
“Pricing cannot be disclosed but importantly net pricing is improved from 2001 levels, allowing for a lowering of the fleet’s cost base. We expect to finalise our funding arrangements for these aircraft shortly.â€
The Centre for Asia Pacific Aviation said confirmation of the Boeing order by Virgin Blue “makes it clear that the airline has no plans to stand stillâ€.
“Essentially, having progressed through the path from genuine LCC, to ‘new world carrier’ and now to a form of low cost network airline, Virgin Blue will be marginalised if it doesn’t expand.
“It has joined the big league and needs to have the power to compete effectively,†CAPA said.
Ian Jarrett
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