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Virgin Blue plans $3.1B fleet expansionDiscount carrier looks to Asia and South Pacific routes
SYDNEY, Australia (CNN) -- Australian budget airline Virgin Blue has announced plans for a multi-billion U.S. dollar fleet expansion, buying up to 50 new Boeing 737 aircraft. The airline said in a statement Thursday it had placed a firm order for 10 Boeing 737-800s -- the most advanced model in the series -- with a further option for another 40 over the next decade. If all 50 aircraft are bought, the total value of the contract comes in at U.S.$3.1 billion. Virgin Blue, which is half owned by British tycoon Richard Branson and half by Australia's Patrick Corp., has built up an extensive Australian network in less than three years of operations, challenging rival Qantas's grip on the lucrative domestic market. Last year it picked up several routes and airport terminal space following the collapse of Australia's one-time second airline, Ansett. The airline says the "milestone" fleet expansion will allow it to push forward with further network expansion and plans to launch international services. New horizonsIt is thought to be looking at starting flights to the South Pacific and Asia before the end of the year, as well as looking at launching domestic services in New Zealand. The order, the airline said, would position the carrier as "one of the world's largest low-fare airlines and also cements Virgin Blue as the operator of the youngest fleet of aircraft in the Asia Pacific region, if not globally." The 737-800, with its distinctive two-meter-high winglets, has a much longer range than previous models of the aircraft, giving Virgin Blue the ability to fly non-stop from Australia to destinations such as Singapore and Samoa. The airline said the deal was the result of 10 months of "tense negotiations" with Boeing and the European Airbus consortium. "The Boeing team worked tirelessly to put together an outstanding offer and this order is a win for us, its a win for Boeing but most importantly, its a win for Australian travelers who will have even further proof that flying on brand new state-of-the-art aircraft does not mean higher fares," Virgin Blue chief executive Brett Godfrey said. The first batch of 10 737s are due for delivery by August 2004.
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