Virgin Australia agrees with Boeing to reduce 737 Max order

Virgin Australia Group has announced it has reached an agreement with Boeing to restructure its B737 MAX order and delivery schedule.

The restructured order book now consists of 25 B737 MAX 10 aircraft which are scheduled for delivery from mid-2023, providing greater efficiencies to the airline as well as a better flying experience for customers. The airline will no longer receive the B737 MAX 8.

Virgin Australia Group CEO and Managing Director Jayne Hrdlicka said the agreement represents a deep commitment to the future from the airline’s new owners, Bain Capital, and will allow Virgin Australia to appropriately manage future fleet requirements amid what has been the worst year in the history of aviation.

“We have already moved to simplify our mainline fleet and committed to the Boeing 737 aircraft as the backbone of our future domestic and short-haul international operations,” Ms Hrdlicka said.

“The restructured agreement and changes to the delivery schedule of the Boeing 737 MAX 10 gives us the flexibility to continually review our future fleet requirements, particularly as we wait for international travel demand to return.

“The MAX 10 will allow us to build on the operational flexibility we have been able to achieve with our existing fleet throughout administration to ensure we remain competitive on the other side of COVID-19.”

Recognising the recertification of the Boeing 737 MAX by the US Federal Aviation Administration and other regulators, Virgin Australia Group remains confident that global return to service plans will support its arrival in mid-2023. This, alongside design features such as the Boeing Sky Interior and higher seating capacity, make for a better product for customers and the environment.

“These enhancements will give us the ability to manage demand and deploy the B737 MAX 10 on high-density domestic and short-haul international routes or where there are constraints due to slot availability limitations.

“We will also continue to invest in capability that delivers a safe and efficient aircraft operation, and one that ensures safety remains our top priority. With support from Boeing, any new aircraft will undergo careful evaluation to ensure we are comfortable with it prior to entering service.”

Virgin Australia Group remains in discussions with aircraft manufacturers on a fleet strategy to support the reintroduction of widebody services when long-haul international travel demand returns.

PREVIOUS ORDER:

25 x Boeing 737 MAX 10

First aircraft scheduled to arrive in July 2021

23 x Boeing 737 MAX 8

First aircraft scheduled to arrive in February 2025

RESTRUCTURED ORDER:

25 x Boeing 737 MAX 10

First aircraft scheduled to arrive in mid-2023