Virgin Blue stakes Trans-Pacific claim

[Pieter C. 5]

More Australian news (apart from the Tiger Airways one):

 

Virgin Blue stakes transpacific claim

 

Tuesday February 13, 2007

Virgin Blue lashed out at growing support in the Australian government for Singapore Airlines' bid to operate flights from Australia to the US.

 

Co-founder and CEO Brett Godfrey was quick to point out that 12 months ago the government denied access to SIA. "Based squarely on that cabinet review and resolution, Virgin Blue took a decision to invest more than A$1 billion ($775.7 million) to equip and launch a new international airline for Australia," he told ATWOnline. "We will launch that airline next year". It is expected to announce its aircraft selection, tipped to be either 777-300ERs or A340-600s, within four weeks.

 

Since Airline Partners Australia launched its takeover bid for Qantas, calls for increased competition have grown from both sides of government. Godfrey claimed some politicians "disregarded Virgin Blue, one of aviation's success stories and an airline that has already raised its hand to compete in this market and proved it can do so."

 

The carrier entered the market six years ago with two aircraft. It now operates 315 daily flights to 22 Australian destinations and cities in New Zealand and the Pacific islands. Godfrey said fares in Australia have dropped 40% during that time.

 

Just three airlines--United Airlines, Hawaiian Airlines and Qantas--operate the transpacific nonstop, but up to 20 are eligible. Godfrey said those carriers that failed tried to compete with Qantas. "What is needed is a new model. Virgin Blue will start with a clean sheet, differentiated," he said.

 

 

[Seth K 3]

Virgin also said it had exercised options for six Embraer aircraft and was in exclusive negotiations with Boeing to acquire seven 777-300ER aircraft with a total list price of US$2.6 billion.

 

Omg, great news...........wow SYD/MEL-KUL-EU could work, KUL the low cost hub and yeah MH/AKX can be threaten for a bit . A stop at DXB can threaten EK/EY, route to LAX can decrease QF frequencies there

Edited February 20, 2007 by Seth K

[Andrew Ong 1]

A lot of LCCs want trans-Atlantic/trans-Pacific routes lately.

 

First, Oasis Hong Kong, then, AK, then JetStar, and now Virgin Blue

[Seth K 3]

And they went for 77W....................will follow by AK , and Virgin 787

[Andrew Ong 1]

The official annoucement from Boeing: six 773(ER) for Virgin Blue :

 

Virgin Blue Orders Boeing 777-300ERs to Initiate Long-Haul Service

Airline also exercises options on Next-Generation 737-800s

 

CANBERRA, Australia, March 21, 2007 -- The Boeing Company [NYSE: BA] and Virgin Blue Holdings, Ltd., today confirmed that the Brisbane-based company has ordered six Boeing 777-300ER (Extended Range) jetliners, with options for six more, and will lease one additional 777-300ER. The new airplanes will allow Virgin Blue to establish its new long-haul airline, providing service from Australia to the United States and other destinations.

 

The six-airplane order is valued at US$1.5 billion at list prices. Virgin Blue currently operates an all-Boeing fleet of 53 Next-Generation 737s.

 

In addition, Boeing said that Virgin Blue had exercised options for five 737-800s that were attributed to an unidentified customer on Boeing's Orders and Deliveries Web site in late 2006. These airplanes are valued at $350 million.

 

"We've had great success with the Next-Generation Boeing 737 aircraft and we did extensive research into the selection of aircraft type for our new long-haul operation. The 777-300ER has proven its economic leadership and reliability, and these traits are crucial as we move out to build our new international product," said Brett Godfrey, Virgin Blue's CEO. "The 777 has an outstanding reputation and is well known for its spacious cabin and high levels of passenger comfort, and we are confident it is the best aircraft for our new airline."

 

Virgin Blue stated during its recently announced half-yearly results that the new long-haul operation would begin with a limited network initially focusing on the United States, using a business model similar to its current value-based operation. The airline noted that it already has the regulator approval process under way.

 

"This order propels our relationship with Virgin Blue to a new level," said Craig Saddler, president, Boeing Australia. "We were there from the very start of Virgin Blue operations in August 2000 and we are excited to be standing beside Virgin again as the airline enters a new phase of innovation and growth. These new 777-300ERs will help establish its new value-based, long-haul operation as a winner. We are also very pleased to continue deliveries of 737s to support Virgin Blue's domestic network."

 

The 777 family of airplanes is popular with passengers and airlines alike due to its fuel-efficient twin-engine design, high reliability, low operating costs, and comfortable and spacious interior. The 777-300ER nominally carries 365 passengers up to 7,880 nautical miles (14,594 kilometers).

 

Since entering into service in 2004, the overall fuel efficiency of the 777-300ER has improved by 3.6 percent through a combination of improved fuel burn in service and enhancements to the airplane. In addition, the range of the 777-300ER has increased by 630 nautical miles since entry into service.

 

With this order, 49 airlines have ordered 924 Boeing 777s. The 777 family of airplanes is the market leader in the 300-to-400-seat segment, consistently capturing more than 65 percent market share. Boeing has continued to grow the 777 family with the recent introduction of two, new longer-range models - the 777-300ER and 777-200LR - and a freighter model currently in development.

 

Through the end of January 2007, Boeing has sold 6,831 737s to 240 customers.

 

 

[Andrew Ong 1]

News release from Virgin Blue's website:

 

Virgin Blue announces multi billion dollar aircraft deal and over 1100 jobs for new international airline

 

Wednesday 21 March 2007: Virgin Blue Airlines has taken a significant step in its plans to launch Australia’s newest international airline with the signing today of a multi billion dollar aircraft order and confirmation that it will create over 1100 new jobs.

 

Chief Executive, Brett Godfrey was joined by the Deputy Prime Minister and Minister for Transport and Regional Services, Hon Mark Vaile and President of Boeing Australia, Craig Saddler, to sign an AUD $2.2 billion deal for six Boeing 777-300ER aircraft and options for six additional aircraft from The Boeing Company.

 

Virgin Blue has also signed an agreement with leading global lessor, International Leasing Finance Company (ILFC) for a seventh 777-300ER, taking the total aircraft commitment price to AUD$2.6 billion.

 

The order comes as Virgin Blue accelerates plans for its yet-to-be-named long haul airline operation. While routes are yet to be announced, the new international airline will initially focus on flights between Australia and the West Coast of the USA.

 

Virgin Blue Chief Executive, Brett Godfrey, said, "This is a significant milestone for Virgin Blue and for Australian aviation."

 

He continued, "We have demonstrated our contribution in the seven years since launching Virgin Blue in the Australian domestic market through flexible and innovative products for both leisure and business travellers and we look forward to doing it all over again."

 

"Our decision to make this significant investment is a clear indication that the findings of the Government’s Aviation Review last year were the right ones. Based squarely on that Cabinet review and resolution, Virgin Blue took a decision to invest and launch a new international airline for Australia."

 

"We will launch that airline in 2008. We will create more Australian jobs, bring more tourists and provide choice and vigorous competition on the Trans Pacific route."

 

President of Boeing Australia, Craig Saddler, said, "Virgin Blue will be the first Australian airline to operate the exceptional 777-300ER aircraft and we look forward to working with Virgin Blue in its quest to open up international air travel to more people."

 

He continued, "We have stood side by side with Virgin Blue since its launch with our aircraft six and a half years ago and we have enjoyed immensely working with the Virgin Blue team and watching their continued success. We are excited to be on board for this new phase."

 

A Virgin Blue team is currently in the United States working with US Government representatives regarding the regulatory approval process, which has been underway for some months.

 

Virgin Blue’s long haul project team is currently recruiting other key management team members. Within the first twelve months of its operation, the long haul airline will create 1160 Australian based jobs including cabin crew, pilots and ground crew. Virgin Blue has set up a section on its website for early expressions of interest (www.virginblue.com.au under About Us, then Jobs).

 

The name of the new airline and updates on the regulatory process will be announced in the next few months.

[Pieter C. 5]

While QF is sacking more and more staff, Virgin Blue is looking for 1100 new ones: look where the future is (same overhere in EU)...