Budget airline Virgin Blue Holdings Ltd
(ASX:VBA) has agreed to buy up to 105 new 737 aircraft from manufacturer Boeing.
The company says a significant percentage of the aircraft is intended for replacement of the existing narrow body fleet, while the remainder will be deployed to new routes and to boost frequency where demand dictates.
CEO Brett Godfrey says securing this agreement now places Virgin Blue in a strong position to prepare for steady future growth as domestic and short haul markets recover.
Virgin Blue says the new aircraft order will 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.
The airline says the deal includes aircraft with new technology which will help the carrier maintain its commitment to reducing its carbon footprint.
Mr Godfrey added that while pricing cannot be disclosed, net pricing is improved from 2001 levels allowing for a lowering of the fleet’s cost base.
Virgin Blue reported a loss of $160 million for fiscal 2009.
