Virgin Blue orders nine 737-800 jetliners
Virgin Blue Holdings, Australia’s number two airline, has agreed to buy nine Boeing 737-800 jets valued at $US634.5 million at list prices, as it expands its fleet of younger, more fuel-efficient aircraft.
Chicago-based Boeing had previously announced the order without actually identifying Brisbane based Virgin Blue as the buyer.
Boeing said that delivery of the jets will start in 2008.
Virgin Blue, whose fuel costs account for 23% of revenue, wants newer planes to lower costs.
The company spent $A212 million on fuel in the first-half ended March 31, almost a third more than in the first half a year earlier.
“The next generation 737 is a reliable and cost-efficient aircraft, which is essential in our competitive low-cost market,” said Virgin Blue Chief Executive Officer.
Virgin Blue, which operates 52 jets in an all-Boeing fleet, also plans to replace some of its leased aircraft with planes it can own, Boeing spokesman Bob Saling said, adding, “List prices for the 737-800, which can seat up to 189 passengers, range from $US66 million to $US75 million.
Report by The Mole
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