Virgin Blue Orders Nine Boeing Jets Worth $634.5 Million

Discussion in 'Virgin Australia Velocity' started by Yada Yada, Jun 13, 2006.

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  1. Yada Yada

    Yada Yada Established Member

    Dec 6, 2004
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    I was hoping to read that they'd ordered some wide body jets. :-|

    Some of these are to replace existing equipment that is under lease.
     

  2. jakeseven7

    jakeseven7 Active Member

    Sep 9, 2005
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    So are they actually adding to their fleet or just replacing?

    Im not a big fan of the 73H's on any airline.
     
  3. Yada Yada

    Yada Yada Established Member

    Dec 6, 2004
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    The reports are slightly contradictory. Bloomberg refers to it as an expansion of the fleet with some being used to replace leased equipment, whereas the Boeing website press release says that they are simply replacements for leased planes in the fleet.
     
  4. NM

    NM
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    Aug 27, 2004
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    Its interesting that the media reports mentions fuel efficiency as being the driving factor behind the decision. But DJ already has a fully 737NG fleet (737-700 and 737-800), so I assume these new aircraft will be just as fuel efficient as the others in the fleet.

    It would seem fleet ownership is more of the drive behind this order rather than fuel costs. Its good to see that DJ are in a financial position to exercise this fleet ownership option.
     
  5. Mal

    Mal Enthusiast

    Dec 25, 2004
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    Are they replacing the 73G's with 73H's perhaps?

    DJ has a few "Ugly Ducklings", including one aircraft with a bulkhead in front of 1ABC and different seats. They might be the ones to go.

    Time will tell, I suppose.
     
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  6. Standby

    Standby Active Member

    May 25, 2006
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    DJ seem to understand that growth for growth's sake with fuel at +USD70 per barrel won't delver a great outcome for the new shareholder.
    On key routes they have ample frequency and product upgrades either announced or implemented to get some yield upside and leisure flyers have a middle ground carrier not as cheap and nasty as JQ but cheaper than JQ's big brother to choose from who offer a connecting product from Hobart to Cairns.
    Until they can get those yields up there won't be any major Dom expansion like the 20-50% growth we've seen in recent years.
    Upgrading aircraft saves costly MTCE (saves sending them offshore to get any work done which is very un Ostralian ;) )
     
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