Virgin Atlantic Places Largest Airbus Order Since Air France Crash

Strategic Insights -

As Virgin Atlantic celebrates its 25th birthday, founder Sir Richard Branson announced the largest order for Airbus A330 series aircraft since the Air France crash, placing 10 orders for the A330-300 type, worth $2.1 billion. The move aims to strengthen the airline's fleet and takes place amidst a downturn in the industry. The airline currently operates 38 planes and has secured financing for all 10 aircraft via aircraft leasing company AerCap.

Key Takeaways:

  • Virgin Atlantic has placed the largest order for Airbus A330 series aircraft since the Air France crash, ordering 10 A330-300 planes worth $2.1 billion.
  • The new planes are larger than the A330-200 lost by Air France, with a 270-seat capacity.
  • Financing for all 10 aircraft has been secured via aircraft leasing company AerCap.
  • The airline will receive five new planes in each of 2011 and 2012, with four on direct operating leases from AerCap.
  • Sir Richard Branson has resumed his goading of British Airways, suggesting the airline could "go bust" and mocking its proposed tie-up with American Airlines.
  • Virgin Atlantic has ruled out bidding for British Airways, instead criticizing BA's proposed tie-up with American Airlines and its decision to ask staff to work for a month without pay.
  • British Airways shares fell 11.8% to 124.6p in response to the comments from Sir Richard Branson.
  • BA has announced it will press ahead with the launch of a twice-daily service from London City Airport to New York JFK on September 29, despite the recession.

Statistics:

  • $2.1 billion: the value of the 10 Airbus A330-300 planes ordered by Virgin Atlantic.
  • 10: the number of Airbus A330-300 planes ordered by Virgin Atlantic.
  • A330-300: the type of aircraft ordered, with a 270-seat capacity.
  • 2011 and 2012: the years in which five new planes are scheduled for delivery.
  • 38: the number of planes currently operated by Virgin Atlantic.
  • 5: the number of new planes scheduled for delivery in each of 2011 and 2012.
  • 4: the number of new planes on direct operating leases from AerCap.
  • 11.8: the percentage by which British Airways shares fell in response to the comments from Sir Richard Branson.

Sources:

  • "Virgin Atlantic places huge Airbus order," The Telegraph, no date.