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Virgin Blue signs, MAS stalls

Tuesday, 20 March 20073 min read

SYDNEY: Virgin Blue takes another step in its ambitious plan to become an international airline tomorrow when it inks a deal with Boeing for seven 777-300 extended range aircraft.

Virgin Blue chief executive and Boeing Australia president Craig Saddler will complete the formalities watched by Federal transport minister Mark Vaile.

The signing is significant because it signals that Virgin Blue is on schedule to launch services to the US West Coast in competition with Qantas by 2008.

Virgin Blue’s choice of the B777 is another blow for Airbus. Last year Virgin went looking for “aircraft capable of operating the trans-pacific route including the Airbus A340 and Boeing 777”.

The choice has been confirmed and it’s Boeing.

Virgin Blue managing director Brett Godfrey says the regulatory approval process for the launch of transpacific services to the USA is well under way and the airline is targeting a launch date in the second half of next year

Godfrey says one proposal is to form a new “ultra-low-cost” carrier, as Virgin Blue has moved away from being a pure low-cost carrier, targeting business travellers for example, and now dubs itself as a “new world carrier”.

Meanwhile, Malaysia airlines (MAS) said it has yet to make any decision on the six Airbus A380 airplanes that it ordered in 2003.

“MAS is still in discussions with Airbus on the various options available but has yet to come to any conclusion,” the airline said in a statement.