Virgin snaps up 40 aircraft making Airbus figures climb higher

0 Comments | Evening Post; Bristol (UK), Jul 28, 2010

PLANE manufacturer Airbus capped off a highly successful week at the Farnborough Airshow with a multi-billion order for 40 aircraft.

The firm, which employs 4,000 at its factory in Filton, has revealed that Virgin America is to buy 40 A320s in a deal worth an estimated $3.5 billion. The airline has said it will buy 40 of the aircraft up-front with options for 20 more aircraft.

The news come in a week when the company announced deals worth more than $10 billion at the industry’s annual gathering.

The new aircraft will be delivered from 2013 through 2016 – with 10 firm orders per year on average, and options for the 20 extra aircraft in 2017-2018.

David Cush, Virgin America president and chief executive, and John Leahy, Airbus chief operating officer, made the announcement of their memorandum of understanding at the airshow.

“This deal reflects confidence in our financial performance, business model and unique service. Despite the tough economic climate since our 2007 launch, Virgin America has experienced record growth, strong financial progress and a sweep of the major reader- based travel awards.

“At a time when most carriers are contracting and shedding jobs, we’re pleased to be growing and bringing our low-fare, innovative service into new markets,” said David Cush.

“The low operating costs, cabin comfort and carbon-efficient design of our all new Airbus fleet will continue to fuel our growth and success in the North American market.”

“A repeat order from Virgin America – a US airline growing quickly both in terms of its route network and its reputation for excellent service – is a great affirmation of the benefits of operating the A320 Family,” said John Leahy.

“We are very pleased they have chosen to expand their reach with even more of our aircraft. Their investment in a state-of-the-art, fuel-efficient Airbus fleet will continue to give them a competitive advantage as they grow.”