BRISBANE- Virgin Australia (VA) CEO Jane Hrdlicka has unveiled the airline’s revised fleet strategy in response to ongoing Boeing 737 MAX delivery delays.
Speaking at the CAPA Airline Leader Summit Australia Pacific 2024 in Brisbane, Hrdlicka outlined plans to refit existing MAX 8 aircraft and acquire planes from Regional Express (REX).
Virgin Australia Boeing Order Change
The airline will convert 12 of its ordered MAX 10 aircraft to MAX 8s, ensuring a steady influx of new planes. Virgin Australia currently operates eight MAX 8s, with six more expected next year. This conversion brings the total to 26 MAX 8s in the pipeline.
Hrdlicka praised the performance of the MAX 8, citing its fuel efficiency, quieter operation, and positive feedback from pilots, cabin crew, and passengers. The airline retains options for additional MAX 10s in the future.
To address immediate capacity needs, Virgin Australia will acquire an unspecified number of aircraft from Regional Express or REX. This move aims to provide the airline with greater flexibility as it navigates supply chain challenges affecting both Boeing and Airbus.
The CEO dismissed rumors of a potential stock market listing for Virgin Australia or investment from Qatar Airways (QR).
The airline received its eighth MAX 8 in August but faces significant setbacks in future deliveries.
Originally expecting 31 new 737 MAX aircraft, including six MAX 8s and 25 MAX 10s, Virgin Australia added only five MAX 8s in 2024, down from the planned 14. The remaining six are slated for 2025 delivery. Further, the MAX 10 arrivals are delayed until at least 2026.
Denies Qatar Airways Stake Report
CEO Jane Hrdlicka addressed rumors surrounding the airline’s future. She dismissed speculation about an initial public offering (IPO), stating it’s a shareholder matter. Hrdlicka also refuted claims of Qatar Airways investment, calling such reports “creative fiction.”
Hrdlicka announced her departure from Virgin Australia after four years as CEO. She plans to focus on her role as Tennis Australia chair and spend time with her family following personal losses. Her appointment in November 2020 came after Bain Capital acquired the airline.
Virgin Australia’s recent history includes a period of financial turmoil. In April 2020, the airline entered voluntary administration with $6.8 billion in debt after failing to secure additional federal funding and Virgin Group funding.
The CAPA Airline Leader Summit Australia Pacific, where Hrdlicka made these announcements, will move to Cairns for its 2025 edition, scheduled for July 31 to August 1.
As of June 2024, Virgin Australia has a 32 percent share of Australia’s domestic market. For comparison, Qantas (QF) along with its subsidiary Jetstar (JQ) has a 63% share. Combined these two carriers have around 95% of the domestic market.
Virgin Australia operates flights to 33 destinations within Australia and 7 destinations in 8 countries outside Australia as of September 2024.
The airline is an all-Boeing aircraft operator and has 92 aircraft in its fleet. This includes 75 737-800, nine 737-700, and eight 737-8 or MAX 8 aircraft.
Stay tuned with us. Further, follow us on social media for the latest updates.
Join us on Telegram Group for the Latest Aviation Updates. Subsequently, follow us on Google News.
Qatar Airways Target Virgin Australia After Buying 25% Stake in Airlink
The post Virgin Australia Converts Boeing 737 MAX 10 Order into MAX 8 appeared first on Aviation A2Z.