Aviation

Virgin Australia announces restructure of Boeing 737 MAX order

Christian Fleetwood

Christian Fleetwood

Virgin Australia will restructure its Boeing 737 MAX aircraft deliveries after reaching an agreement with the manufacturer.

In a statement released this morning, Virgin Australia has announced it will defer the delivery of its first round of Boeing MAX aircraft from 2019 to 2021.

The airline has also reported it will convert 15 of its 737 MAX 8 aircraft to 737 MAX 10s.

Virgin Australia’s original order had been for 10 737 MAX 10 aircraft (scheduled for January 2022) and 38 737 MAX 8 aircraft (scheduled for November 2019).

Following its new restructured order, Virgin Australia will now receive 25 737 MAX 10s and 23 737 MAX 8s. Virgin Australia will take delivery of its first 737 MAX 10 aircraft in 2021 with its first 737 MAX 8s scheduled to arrive in 2025.

Virgin Australia said the restructuring of its deal with Boeing results in a “significant deferral of capital expenditure” and that the agreement will provide “access to the superior economic benefits of the MAX 10 aircraft”.

“I’m pleased that we have reached an agreement with Boeing to convert a further 15 of our Boeing 737 MAX 8 aircraft to MAX 10s and defer delivery of our order to July 2021,” Virgin Australia group CEO and managing director Paul Scurrah said.

“The revised timing also results in a number of positive commercial benefits for the group.

“This includes a significant deferral of capital expenditure by extending the use of existing aircraft, given the relatively young age of our fleet, along with providing the group earlier access to the superior operational economics of the MAX 10 aircraft.”

Scurrah also said the airline was confident in Boeing’s commitment to returning the 737 MAX to service safely.

“[A]s a long-term partner of Boeing, we will be working with them through this process,” he said.

The news comes amid an international grounding of Boeing’s 737 MAX 8 aircraft, following the fatal Lion Air flight 610 and Ethiopian Airlines flight 302 disasters.

Boeing is currently working on its MCAS software update, which the company says will fix the system that has been implicated in both crashes.

Boeing CEO and president Dennis Muilenburg said that, following its upcoming MCAS updates and pilot training, the 737 MAX 8 will be “among the safest airplanes ever to fly”.

The aircraft manufacturer has said that it is close to completion on its update.



SEE WHAT PEOPLE ARE SAYING

Leave a Reply

Destinations

Entire adds Cook Islands as its newest destination

We were disappointed to find out the Cook Islands is not where they train all the chefs in the world.

Share

CommentComments

Destinations

The People You Meet: South Africa

by Nancy Hromin

Continuing with our series, Nancy Hromin gets to know some unique faces of South Africa.

Share

CommentComments

Aviation

Jetstar launches new fare structure and ticketing in GDS

Rejoice! Jetstar is making it a bit easier for you to book your clients on flights, something we love to see.

Share

CommentComments

Hotels

Hotel Review: Villa Ducale offers boutique luxury in southern Italy

There are very few things that rival boutique luxury in southern Italy, except for maybe a nice Tim Tam… those aren’t too bad.

Share

CommentComments

Tourism

“There’s more to Australia than Ramsay Street” says Tourism Australia

We’re still going through the five stages of grief, but Tourism Australia says it’s finally time to “say goodbye”.

Share

CommentComments

Aviation

British Airways pause sales of short-haul tickets at Heathrow

Luckily Australia is about as far away as it gets from Heathrow so we will not be impacted by the cancellation.

Share

CommentComments

Hotels

Hotel Review: Family-friendly luxury on Sri Lanka’s South Coast

A family-friendly hotel is great, and what makes this one even better is the adults-only moon pool where you can get away from the kids.

Share

CommentComments

Aviation

Qantas confirms Norfolk Island flights for summer

Island paradise awaits for getaway hungry Aussies… we mean a literal getaway, not the show (which we do love though).

Share

CommentComments

Cruise

River cruise cancellation fears loom as Rhine threatens closure

A cruise ship getting caught in the Rhine is like your 4WD getting bogged in the bush, but much much worse!

Share

CommentComments

Destinations

Visit USA expo series wraps up in Sydney

Did you drink one too many cocktails and forgot what went down at Visit USA’s trade show? Travel Weekly to the rescue.

Share

CommentComments

Destinations

VisitBritain shows Aussie trade another side of the UK

Travel Weekly’s editor has been galivanting around England for the past week, leaving the office dog in charge. Unsurprisingly, our readership has skyrocketed.

Share

CommentComments

Tourism

NT tourism destinations unveil $40m upgrade

These refurbishments mean that your next adventure to the outback will be a bit more comfortable than those of Russell Coight.

Share

CommentComments