Virgin Atlantic Airways has ordered 13 Airbus planes with an option to pick up another 13, a deal worth more than US$5.5 billion that will nearly double Virgin's fleet as the airline continues to try to beat rival British Airways (BA), chairman Richard Branson said on Thursday.
Virgin would "like to fly every route British Airways flies, and in the next five to seven years we plan to fill the gaps," Branson told reporters at a news conference. The order is for 13 new A340-600 aircraft, a four-engine plane that seats 306 passengers, to be delivered from 2006 to 2008, with 13 more of the same planes to be delivered after 2008 if Virgin wants them.
The decision was a blow for Boeing, which had competed for Virgin's order with its twin-engine 777. Branson said that Airbus had offered a terrific deal, and that some Virgin passengers prefer four-engine aircraft.
Branson also said that Virgin was one of two airlines speaking to the Nigerian government about setting up an airline there.
Virgin Airways, which is controlled by the Virgin Group, plans to use the first of its new Airbus planes to fly Australian and Caribbean routes, competing directly with British Airways, Branson said. The company plans to add 6,000 jobs as it expands, he said.
If all 26 Airbus planes are delivered, Virgin's long-haul fleet would be about half the size of BA's fleet.
Virgin's current fleet consists of 16 Airbus and 13 Boeing jets. The airline had previously ordered six of Airbus' huge A380 planes, which seat more than 500 passengers, but in May delayed delivery of those planes for 18 months.
The deal is a windfall not only for Airbus but also for Rolls-Royce, which will make the Trent 500 engines for the planes. The total contract could be worth US$1.3 billion at current list prices, Rolls-Royce said in a news release on Thursday.
Analysts said the order was a big gamble, given European airlines' uncertain future.
"If you look at the near-term economic outlook, it is mixed," said Chris Tarry, an independent airline analyst.
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