Virgin Australia plays with its Boeing 737 MAX order book

It seems that Boeing is open to airlines restructuring or modifying orders, as Virgin Australia slims its orders down for the Boeing 737 MAX.

Virgin Australia Boeing 737 MAX – Image, Virgin Australia.

Previously Virgin Australia had orders for 25 Boeing 737 MAX 10 (due July 2021) and 23 Boeing 737 MAX 8 (due February 2025).

The new order both removes the smaller 737 MAX 8 from the order and delays the first delivery of a 737 MAX 10 to Mid-2023, whilst retaining the full batch of 25 aircraft.

The airline argues the move will provide greater efficiencies to the airline as well as a better flying experience for customers. The move also 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.

With the current long/mid-haul fleet stored or disposed of (comprised of Boeing 777-300ER and Airbus A330 aircraft), the 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.

In Quotes

Virgin Australia Group CEO and Managing Director Jayne Hrdlicka said:

“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,” 

“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.”

“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.”

That’s a bit of a cut

However Boeing can dress this up, this is both a cut in deliveries and a delay of introduction to service. For Virgin Australia, it is a chance to shore up traffic and build back up again

For Boeing, it’s time to shuffle delivery slots again and see if anyone wants at least 23 737 MAX 8 aircraft delivered early, in the hope they can gain some extra orders when the long haul operation picks up.