Virgin delays 777 no. 5&6
 

Virgin Blue delays plane deliveries
Matt O'Sullivan
April 23, 2009 - 3:02PM

Virgin Blue's long-haul carrier, V Australia, has underlined the extent of the downturn in aviation after it delayed the delivery of two Boeing 777-300 aircraft for up to two years.

As foreshadowed in BusinessDay two weeks ago, Virgin today announced that it had reached agreement with Boeing to defer the delivery of its fifth and sixth 777s. It had planned to received the extended-range aircraft next year, but they will now be rescheduled for delivery in 2011 and 2012.

V Australia is using three 777s to fly daily services between Sydney and Los Angeles, and thrice weekly between Brisbane and the City of Angels. It is still due to receive a fourth aircraft in the third quarter so that it can begin flights between Melbourne and LA three times a week.

Virgin Blue said in a statement that the delays to the two aircraft was ''prudent action in the current operating environment'' and was part of the airline's on-going measures to cope with the downturn.

It comes two weeks after Boeing announced it will reduce production of the 777 its most profitable aircraft next year due to a ''significant deterioration'' in the business environment for airlines.

Deferral of the aircraft will give V Australia breathing space to better manage capacity on the trans-Pacific route, resulting in fewer seats at a time of weak consumer demand.

The airline already faces stiff competition from Qantas and United Airlines on the route. However, the content will intensify in July when the world's largest carrier, Delta Air Lines, begins daily services between LA and Sydney.

Qantas last week deferred orders for four Airbus superjumbo A380s for up to a year and for 12 Boeing 737-800s for about 14 months. It is also talking to Boeing about delaying the delivery of 15 787 Dreamliners and has indicated it could reduce its orders for the more fuel-efficient aircraft.

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SMH

Looks like everybody is feeling the pinch.

Well there goes the neighbourhood.

If all these deferrals of aircraft, and especially with the 787. Does that mean that Boeing will not have to pay the penalty of the delay? As even if they can delivery the aircrafts on time, no one seems to want them at this stage.

capt_akun that's a good question.

I understood Qantas had booked penalty payments from the A380 delay years ago. What happens to those payments now that they are deferring 380's.

I hope they have to pay them back!

Dumb comment!

All carriers, and all manufacturers are doing creek without paddle right now.

It's not over yet for any carrier or any manufacturer.

At best, there are no new job opportunities for a few years; at worst, jobs are lost.

Dumb Comment???? I don't think so buddy!

The manufacturers you say are doing it tough too, so maybe you should look at it from their perspective for a minute.

If the manufacturer pays a penalty for late delivery, thats fair enough......but if the customer causes the supplier financial hardship should there not be a penalty also?

And whats more, if the credits for late delivery were for aircraft now deffered, why should those credits not be revoked.

Put the boot on the other foot for a minute, fair is fair after all, it should never be a one way street in business. I think that has always been the pilots cries here with airlines too!

J:ok:

Lets hope they got the extended warranty.