American Firms 737 Order, Virgin America Adds A320's
Orders taken by both Boeing and Airbus at the Farnborough Air
Show may keep assembly lines busy for quite some time. On Thursday,
Azerbaijan Airlines announced it had signed an agreement to
substitute two Next-Generation 737 airplanes for one 767-300ER
(extended range) and two 767 Freighters, a new model type for the
Baku, Azerbaijan-based airline. The substitution has been updated
on Boeing's Orders and Deliveries website.
"With our centralized geographic location, Azerbaijan is
becoming a busy hub in the region between east and west and north
and south," said Jahangir Askerov, president of Azerbaijan
Airlines. "We are capitalizing on this development by expanding our
long-haul passenger fleet and growing our cargo business with the
proven efficiencies of the 767 Freighter."
Including Thursday's announcement, Azerbaijan Airlines has a
total of eight Boeing airplanes on order: two 767-300ERs, two 767
Freighters, two Next-Generation 737s and two 787-8s.
"With the economic recovery gaining momentum at various speeds
around the world, our customers are making changes to their fleets
to accommodate the upturn," said Marlin Dailey, vice president of
Sales, Boeing Commercial Airplanes. "We have worked with Azerbaijan
Airlines to make changes to its order book that meet its
needs."
Wednesday, Boeing announced American Airlines has exercised
options for an additional 35 Next-Generation 737-800s. The order is
part of American Airlines' ongoing fleet renewal plan, replacing
MD-80s with Next-Generation 737s. The 737-800 is 35 percent more
fuel efficient on a seat-mile basis than the MD-80s it will
replace.
"American Airlines is leveraging all the performance benefits of
the Next-Generation 737 to enhance the airline's competitive
position, while providing an enhanced passenger travel experience,"
said Marlin Dailey, vice president of Sales for Boeing Commercial
Airplanes. "American's investment in additional 737s demonstrates
real confidence in the 737's technology and economics. In addition,
the new interiors on its existing 737 fleet and the new 737 Boeing
Sky Interior on deliveries starting in 2011 will ensure American's
customers continue to enjoy an exceptional flying experience."
"The 737-800 provides additional amenities for our customers
while helping to reduce our operating and fuel costs and lessen our
impact on the environment," said Virasb Vahidi, chief commercial
officer for American Airlines. "The 737 is a product that benefits
all of American's stakeholders and is a good fit for our current
fleet renewal plans."
Closer to home, for Farnborough at least, Virgin America said on
Thursday that it plans to order 40 new Airbus A320 aircraft, with
options for 20 additional aircraft. The new aircraft would be
delivered from 2013 through 2016 - with 10 firm orders per year on
average, and options for 20 additional aircraft in 2017-2018. With
today's order of 40 new aircraft and growth from other sources,
Virgin America's fleet is projected to grow from its current 28
aircraft to 90 aircraft by 2016 - a compounded annual growth rate
of 21.5 percent. David Cush, Virgin America President and CEO, and
John Leahy, Airbus Chief Operating Officer, make the announcement
of their memorandum of understanding Thursday at the Farnborough
International Airshow.
"This MOU reflects confidence in our financial performance,
business model and unique service. Despite the tough economic
climate since our 2007 launch, Virgin America has experienced
record growth, strong financial progress and a sweep of the major
reader-based travel awards. At a time when most carriers are
contracting and shedding jobs, we're pleased to be growing and
bringing our low-fare, innovative service into new markets," said
Virgin America President and CEO David Cush. "The low operating
costs, cabin comfort and carbon-efficient design of our all new
Airbus fleet will continue to fuel our growth and success in the
North American market."
With the U.S. DOT's approval of its new ownership structure in
January 2010, Virgin America says it is focused on growth - with
six additional aircraft entering its fleet this year and 12
additional aircraft planned in 2011. The airline currently has four
aircraft for delivery in 2012 and expects to look for additional
aircraft for 2012, in order to bridge its fleet growth to the new
Airbus order starting in 2013.