Virgin Blue will launch the first of its services from Perth to Christmas Island today with direct services between Perth and Cocos Island commencing next Tuesday after signing its biggest aircraft deal for up to 105 brand new 737 aircraft with Boeing.
Virgin Blue will launch the first of its services from Perth to Christmas Island today with direct services between Perth and Cocos Island commencing next Tuesday after signing its biggest aircraft deal for up to 105 brand new 737 aircraft with Boeing.
The company said the transaction, which has been in negotiation for nine months 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.
Delivery is scheduled from June 2011 through to 2017 and delivery options negotiated will provide important flexibility to manage movements in market conditions.
Virgin Blue has committed an executive-style Embraer E-190 jet onto the new Cocos and Christmas Island routes, an aircraft which has more seat capacity and the capability to fly non-stop to the islands, negating the need for the aircraft to stopover in Learmonth for re-fuelling like the previous carrier.
The airline will operate two direct flights weekly between Perth and Christmas Island on Thursdays and Saturdays and a third service weekly via the Cocos (Keeling) Islands on Tuesdays.
Full announcements below:
VIRGIN BLUE SIGNS MAJOR AIRCRAFT DEAL - UP TO 105 NEW BOEING 737'S FOR FUTURE GROWTH & AIRCRAFT REPLACEMENT PROGRAM
Thursday, 1 April 2010, Brisbane, Australia: Virgin Blue Group confirms it has just formally signed an agreement with aircraft manufacturer Boeing, for up to 105 brand new 737 aircraft.
This consummates the in-principle agreement, which was signalled at the recent half year financial results briefing. The transaction has been in negotiation for nine months and its completion 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 agreement includes 50 firm B737-800NG aircraft (with flexibility to convert to either B737-700 or B737-900), 25 additional firm delivery positions secured as options and 30 future purchase rights. Delivery is scheduled from June 2011 through to 2017 and delivery
options negotiated will provide important flexibility to manage movements in market conditions, to aggressively ensure market share is not eroded and to provide additional growth options at Virgin Blue's discretion.
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.
Virgin Blue Chief Executive, Brett Godfrey, said, "Securing this agreement now 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."
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 deal includes aircraft with the latest technology under the Boeing Performance Improvement Plan, which will also help the carrier maintain its commitment to reducing its carbon footprint, via initiatives including engine improvement and enhanced aerodynamics. The aircraft will be delivered with Boeing's new sky interiors with inclusions such as newly designed seats and IFE which will complement Virgin Blue's 'Airline of the Future' initiative to be rolled out during 2011.
Brett Godfrey added, "Virgin Blue was fortunate to see the opportunity and be in a position to take advantage, of the downturn in the market as we did back in 2001, to secure long term future supply of aircraft on attractive commercial terms. Pricing cannot be disclosed
but importantly net pricing is improved from 2001 levels, allowing for a lowering of the fleet's cost base. We expect to finalise our funding arrangements for these aircraft shortly."
VIRGIN BLUE TO CELEBRATE EASTER AT CHRISTMAS
NEW FLIGHTS BETWEEN PERTH AND CHRISTMAS AND COCOS (KEELING) ISLANDS LAUNCH
Thursday 1 April: Virgin Blue's inaugural flight from Perth to Christmas Island will take off this afternoon from Perth International Airport at 1.20pm, with direct services between Perth and Cocos Island commencing next Tuesday 6 April.
The airline will operate two direct flights weekly between Perth and Christmas Island on Thursdays and Saturdays and a third service weekly via the Cocos (Keeling) Islands on Tuesdays.
Virgin Blue has committed an executive-style Embraer E-190 jet onto the new routes, an aircraft which has more seat capacity and the capability to fly non-stop to the islands, negating the need for the aircraft to stopover in Learmonth for re-fuelling like the previous carrier.
Virgin Blue Airlines Group Chief Executive, Brett Godfrey, said, "Interest in travel to this region has already increased with the introduction of our low fares and we're confident tourism to both Christmas and Cocos Islands will continue to grow now the secret about these beautiful locations is out."
The addition of Christmas and Cocos Islands to Virgin Blue's growing network means the people of Perth have the option to fly domestically or internationally non-stop to 13 destinations on the Virgin Blue Airlines Group network.
Lead-in fares from Perth to Christmas Island start from just $464* one-way on the net - significantly cheaper than fares offered by previous carriers to the island.
Linda Cash of Christmas Island Tourism Association, said, "This is the biggest boost to tourism the island has ever seen!
"Virgin Blue's new service to Christmas Island is a win, win, win for both the local community and tourists - increased seat capacity, less time in the air and, most importantly, better value.
"This increase in accessibility means people who have only ever dreamt of travelling to our shores for our famous crab migration, whalesharks, seabirds and rainforest can finally explore our natural wonders," Linda Cash finished.
While the new flights are within the Australian domestic network, all services to and from Australia will arrive into and depart from Perth International Airport. Connecting fares are also available from all over Virgin Blue's extensive network.
