Boeing can console itself with the near certainty of a large order for new jets from Virgin Blue in the coming weeks or months after this morning losing the contest to replace Air New Zealand’s aged fleet of Boeing 737-300s.
Air NZ has ordered 14 A320s to replace the 15 Boeings involved, and taken options on a further 11 of the Airbus single aisle family, including the option to up size to the stretched A321.
The regional focus is now on Virgin Blue, which has a large part of its 737 NG series jets coming off lease in 2011, as well as holding orders or options for more Boeing 777-300ERs which it is widely tipped to exercise as signs of market recovery and better sales on its new trans Pacific flights and other long haul international opportunities come into view.
One question concerning the Virgin Blue order is whether it will include some Boeing 737-900ERs. While the stretched 737 is more difficult to turn than smaller 737s, it offers substantial improvements in seat/kilometre costs and the inescapable reality at Sydney Airport is that Virgin Blue needs more seats per flight to deal with the inadequacy of its T2 facility and future slot availability to cater for growth.
Of course, if Boeing screws the price, quelle frommage! Airbuses everywhere!
4 Comments
For the sake of fleet commonality, Air NZ should have bought these A320s for domestic ops at the same time as they purchased the short-haul/ Trans-Tasman A320s 6 or so years ago. For me, the consideration of 737s this time was just a ploy to get the A320 price down.
Why aren’t there A319s on the bill? Surely New Zealand is the perfect place for them.
They accommodate roughly the same number of pax as the now defunct 737-300s. Nice thin routes like ZQN – WLG or even off-peak AKL – CHC would be ideal.
Just as Jetstar has done with its A321s, Virgin Blue likewise should look at the stretched B737-900ER. Importantly, it would allow the carrier to add capacity on its key routes such as MEL-SYD, BNE-SYD, not too mention any routes that do not require such a quick turnaround, without having to add frequency.
If Virgin Blue is to effectively combat the increasing competition from Jetstar, both domestically and trans-tasman, one would think this is a strategic necessity for the carrier. Acting now is the key, as Messrs Godfrey and Fyfe have rightly noted the current optimal environment for aircraft purchasing. Also kudos to them for being some of the few airlines in the position to capitalise on this!
Also, for Boeing’s sake, lets hope they do get the pricing right. With the loss of the Air NZ deal, the importance of Virgin Blue in this region just grew exponentially. Losing a deal for 30-50 (as Virgin Blue noted) aircraft is the last thing the beleaguered manufacturer needs. Given the importance of the B737 to Virgin Blue, the significance of this deal to Boeing, and their long relationship, I don’t see the bean counters at Boeing missing out on this.
jack504 “Also, for Boeing’s sake, lets hope they do get the pricing right”.
Are you a Boeing representative?
Not at all, just highlighting the importance of the Virgin Blue deal to Boeing now.
Given the much-publicised problems within Boeing recently, one would think a Virgin Blue deal takes on added importance. In retrospect that should’ve been worded slightly better.