Virgin Australia announces restructure of Boeing 737 MAX order

Sydney, Australia, November 8, 2014 a Boeing 737-800 in Virgin Australia colour scheme taking off from Sydney (Kingsford Smith) Airport on a late afternoon. The plane is bound for Gold coast Queensland

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.

Latest News

  • Destinations
  • Events

World Surf League picks Cloudbreak in Fiji for the 2025 WSL Finals

Tourism Fiji has announced that the World Surf League (WSL) has selected Cloudbreak, located close to the island of Tavarua, as the prestigious venue for the 2025 WSL Finals. The event is part of the Championship Tour and will determine the men’s and women’s World Champions in a one-day, winner-takes-all competition. Fiji is renowned for […]

  • Cruise

Silversea’s Silver Ray heads for Rome on her maiden voyage

Silver Ray, the second Nova Class ship and the 12th in the Silversea fleet, has now embarked on her maiden voyage, departing Lisbon on June 15 and scheduled to arrive in Civitavecchia (Rome) on June 27. Stops along the way include Cadiz, Malaga, Valencia and Palma de Mallorca before the main port of  Barcelona then […]

  • Destinations

Malolo Island Resort Fiji launches its own resort app

Guests at the Malolo Island Resort can now get a better experience even before they arrive with the resort’s newly launched mobile app. Guests are encouraged to download and use the app ahead of their stay to build their itinerary. They can check-in prior to their arrival and make dinner and spa reservations all from […]

  • Tour Operators

France on foot holiday savings

Walking up a steep incline may be painful, but it is all worth it when you see that incredible view.

  • Cruise

Seabourn introduces enhanced groups programs for travel advisors

Leading ultra-luxury cruising and expedition travel company, Seabourne, proudly announces the “Seabourn Enhanced Groups Program” to elevate business prospects for travel advisors. This program introduces a revamped Tour Conductor Credit that offers shipboard credits or bonus commission for bookings. It also eliminates the need for deposits for small group allotments and increases group capacity. “Seabourn […]

  • Cruise

Ponant’s latest luxury cruise expeditions for 2024 and 2025

Head out to see the beauty of unique destinations on three bucket-list explorations of Australia with Ponant Cruise’s new luxury expeditions. Known for their luxury cruises, Ponant offers unique and truly exceptional sea voyage aboard sleek and intimately sized cruise yachts. They offer a range of discovery expeditions, and launched new cruises that take guests […]