Virgin Blue orders up to 105 Boeing 737 aircraft
Virgin Blue Holdings Ltd., Australia’s second-biggest carrier, signed a deal for as many as 105 Boeing Co. 737 aircraft as a rebounding global economy spurs travel demand.
The carrier placed firm orders for 50 planes, took options on 25 more and future purchase rights for a further 30, it said in a statement today, without disclosing a price. The planes, which form Boeing’s biggest deal in 18 months, will be delivered from June 2011 to 2017, according to the statement.
The airline said pricing was “improved” from its last order in 2001 after the global recession sapped demand for new planes last year. The 737s, worth as much as $8.1 billion at average list prices, will be used to replace existing aircraft and to boost capacity.
“Virgin Blue was fortunate to see the opportunity and be in a position to take advantage of the downturn in the market,” outgoing Chief Executive Officer Brett Godfrey said in the statement. The airline expects to complete funding plans for the aircraft “shortly,” he said.
The Brisbane-based carrier returned to profit in the six months ended December after a year-earlier loss as Australia avoided the worst of the global recession. Qantas Airways Ltd., the nation’s biggest carrier, has also ordered new planes on rising domestic and Asia-Pacific travel demand.
Virgin Blue fell 1.4 percent to close at 69.5 Australian cents in Sydney trading. The carrier has gained 18 percent this year, compared with a 5 percent decline for Qantas. (Bloomberg)



