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Wed, Jun 16, 2004

Airbus Strikes In Boeing's Back Yard

Blame Branson

Sir Richard Branson and company have decided on a name for their new US-based low-cost carrier. They've also decided what the new airline will fly.

The airline will be called Virgin America and, as ANN has reported, will base its operations at SFO in San Francisco (CA).

Virgin America chief Frederick Reid, formerly of Delta, announced the decision to go with Airbus on Tuesday. He said the company will purchase 11 A319s and seven A320s right off the bat. They'll be delivered early next year. The company will lease another 15 A320s through GE Capital Aviation.

While Reid wouldn't say just what the lease-purchase arrangement was worth, the 18 aircraft Airbus will deliver to Virgin America next year are worth about $1 billion at list price.

As part of the deal, Reid also said Virgin America had options on more Airbus aircraft, which, if fully executed, would bring the total fleet to 105.

FMI: www.virgin.com

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