Flush With Cash, Airline Continues Aggressive Expansion

It could be a shot in the arm for Boeing's lagging order count so far for 2007... as Australia's Virgin Blue announced this week it was close to signing a deal for as many as 13 777-300ER widebody planes the carrier plans to use on new long-haul routes to the US.

Reuters reports Virgin also exercised options for six more regional airliners from Brazilian planemaker Embraer. The carrier aims to use the three additional E-190s and three E-170s to expand operations throughout Australia and the South Pacific, as the airline continues its aggressive expansion efforts.

Virgin was also considering the four-engine Airbus A340 for the long-haul flights... but the carrier, which recently reported an 81 percent increase in first-half profits, said it is "pretty well there" in ordering six Boeing twinjets, with options for seven more, in a deal worth $2.6 billion list.

Virgin Blue CEO Brett Godfrey says the airline hopes to start long-haul flights in the second half of 2008, to destinations such as Hong Kong, Japan, and the US. Those routes are currently flown by rival airline Qantas. Virgin has already applied for landing rights in the US, Godfrey said.

"Don't be surprised if we don't serve the traditional markets is all we can say today on it," he added.

Virgin Blue is also reportedly considering launching a low-cost subsidiary, to do battle with Qantas' JetStar.

FMI: www.virginblue.com