Virgin signs deal to buy 105 new aircraft
March 31, 2010
Virgin Blue Holdings Limited (VBA) said it has signed an agreement with aircraft manufacturer Boeing for up to 105 brand new 737 aircraft. The company said this completes the in-principle agreement, which was signalled at the recent half-year financial results briefing.
Virgin said the completion of the transaction constitutes the biggest aircraft order in Virgin Blue’s ten-year history and the Boeing Aircraft Company’s largest order in the past 18 months.
The company said the agreement includes 50 firm B737-800NG aircraft, 25 additional firm delivery positions secured as options and 30 future purchase rights.
Delivery is scheduled from June 2011 through to 2017.
Chief executive, Brett Godfrey, said the agreement places Virgin Blue in a strong position to prepare for steady future growth as domestic and short haul markets recover.
“It will also ensure a turnover of aircraft to maintain the youngest fleet of modern aircraft which is crucial for maintaining our commitment to on-time performance and the lowest cost base possible,” Mr Godfrey said.
Virgin said the new aircraft would deliver a further reduction in operating costs to manage the airline’s future cost base, maximise reliability and continue to bring to market modern airline products and services.
Brett Godfrey said pricing could not be disclosed but added that importantly net pricing is improved from 2001 levels, allowing for a lowering of the fleet’s cost base.
As at 1041 AEDT, Virgin Blue shares were up 1c to 71.5c.
Virgin said the completion of the transaction constitutes the biggest aircraft order in Virgin Blue’s ten-year history and the Boeing Aircraft Company’s largest order in the past 18 months.
The company said the agreement includes 50 firm B737-800NG aircraft, 25 additional firm delivery positions secured as options and 30 future purchase rights.
Delivery is scheduled from June 2011 through to 2017.
Chief executive, Brett Godfrey, said the agreement places Virgin Blue in a strong position to prepare for steady future growth as domestic and short haul markets recover.
“It will also ensure a turnover of aircraft to maintain the youngest fleet of modern aircraft which is crucial for maintaining our commitment to on-time performance and the lowest cost base possible,” Mr Godfrey said.
Virgin said the new aircraft would deliver a further reduction in operating costs to manage the airline’s future cost base, maximise reliability and continue to bring to market modern airline products and services.
Brett Godfrey said pricing could not be disclosed but added that importantly net pricing is improved from 2001 levels, allowing for a lowering of the fleet’s cost base.
As at 1041 AEDT, Virgin Blue shares were up 1c to 71.5c.
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