17-Sep-2009 10:44 AM

Virgin Blue considering order for up to 50 aircraft, expecting break even in FY2009-10

Virgin Blue is in talks with Boeing to order 35-50 aircraft, as leases on 25 B737s expire from 2011 (Australian Financial Review, 17-Sep-2009). CEO, Brett Godfrey stated the carrier would not have difficulty financing the aircraft, and plans to take advantage of lower aircraft prices. The carrier also confirmed it is still expecting to break even in FY2009-10 (AAP, 16-Sep-09/The Age, 17-Sep-09). Virgin Blue hopes to attract more corporate and government demand over the financial year.

Virgin Blue: "Now is the best time to do an [aircraft] deal. We are in the market because the market is right and we don't want to miss the opportunity…We have got a good balance sheet now...and I don't believe we will have an issue with financing them." Brett Godfrey, CEO. Source: The Age, 17-Sep-09.

Virgin Blue: “The last 12 months…have been the most taxing, the most complex, the most challenging, the most vexing and quite frankly the most unexpected…It has been an awful few months for it [V Australia] but commercially the worst has to be behind it...I am not sure we will see massive improvement [in conditions]. But we have certainly seen a levelling out. V Australia's utilisation is up, its loads are improving and as night follows day yields will also follow loads.” Brett Godfrey, CEO. Source: The Age, 17-Sep-09.

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