Virgin Australia orders 23 Boeing 737 MAX aircraft

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(Release to the Australian stock market a few minutes ago:)

VIRGIN AUSTRALIA HOLDINGS LIMITED (ASX:VAH)
Virgin Australia orders 23 Boeing 737 MAX aircraft
5 July 2012
Virgin Australia today announced an agreement with Boeing to order 23 Boeing 737 MAX 8 aircraft, the first
in Australia.

The fuel-efficient aircraft will join Virgin Australia’s fleet between 2019 and 2021. The agreement includes
four additional delivery options, ensuring flexibility to respond to market conditions.

To align with its current capacity plan for the next three years, Virgin Australia has delayed the delivery of
some of its Boeing 737NG aircraft to after 2016, leaving 31 scheduled deliveries of Boeing 737-800 aircraft
between 2013 and 2016. This gives the airline flexibility to develop the appropriate mix of narrow-body and
wide-body aircraft.

Virgin Australia expects that by the end of 2013, all of its Boeing 737-700 aircraft will have exited the fleet.
Virgin Australia CEO John Borghetti said: “Virgin Australia is committed to maintaining a young and flexible
fleet of modern aircraft. In the past year alone, we have reduced our average fleet age from 4.9 to 4.2 years.
“The Boeing 737 has formed a critical part of the Virgin Australia fleet over the past decade thanks to its
reliability, comfort and fuel efficiency. The Boeing 737 MAX will build on this, enabling us to achieve strong
on time performance and maintain our low cost base.

“One of the key advantages of the Boeing 737 MAX is that it should reduce fuel burn and CO2 emissions by
13 per cent over today's most fuel-efficient single-aisle aircraft. The aircraft will also feature the light and
spacious Boeing Sky Interior and incorporate the latest quiet engine technology, reducing its noise footprint
significantly.

“Virgin Australia will continue to review its fleet strategy to ensure we align fit-for-purpose aircraft to markets
and maintain maximum flexibility in capacity management”, Mr Borghetti said.
 
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Love the spin.
The more important short term part is:

To align with its current capacity plan for the next three years, Virgin Australia has delayed the delivery of some of its Boeing 737NG aircraft to after 2016
 
I was going to say moa999

no mention of the delayed aircraft?
 
Love the spin.
The more important short term part is:

To align with its current capacity plan for the next three years, Virgin Australia has delayed the delivery of some of its Boeing 737NG aircraft to after 2016

For the most part I share your cynicism but it's also possible that they're going to slow-up the delivery of new 737s and ramp up domestic widebody capacity instead.
 
... and that's why some of the 737-700's are now getting the Business revamp as they are going to be around more than a year longer than had been planned (they were all supposed to be gone by this year's end).
 
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Strange the 737-700's are getting refitted when "Virgin Australia expects that by the end of 2013, all of its Boeing 737-700 aircraft will have exited the fleet."

However, the refit wouldn't cost that much really anyways........

New planes are great, but it's not a huge capacity expansion as others have said
 
They'll get more widebodies over the next 1-2 years, and most of the capacity growth this year is from 737-800s replacing 737-700s and more A330 aircraft, as well as new regional flights
 
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