Well, if you are former USAirways, UAL or Ryan Airbus pilots, get your resumes ready... Dick Branson's comin' to town!
Frisco would probably be better because of the limited space in Boston me thinks. Aren't Delta and Jet Blue expanding out of Boston? Can you have a good "hub" system out of Boston given its geographic location? VA will probably operate more point-to-point I guess. I'm sure Schwartzenegger will give Branson some tax breaks. Have fun with Fred Reid (when will the 1000+ RJ order take place?)...
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Airbus set for Virgin US order
By Caroline Daniel in Chicago
Published: April 27 2004 21:55 | Last Updated: April 27 2004 21:55
Virgin US, the proposed new low-cost airline, is poised to announce an order for up to 30 Airbus aircraft in a deal that will further the European manufacturer's inroads into the fast- growing sector.
The deal could be worth as much as $1.6bn at list prices, although such large orders are usually heavily discounted.
An announcement could come as early as next week, together with a decision about where the new airline will be based. The location is expected to be either San Francisco or Boston.
Securing a deal with Virgin US would mark a significant victory for Airbus, given that Virgin's other low-cost operations - such as Virgin Blue in Australia - use Boeing aircraft.
The Virgin US order is expected to include a mix of A319 and A320 short-haul aircraft, to be delivered from next spring. Virgin could buy up to 20 of the aircraft and lease a further 10.
It remains in talks with potential equity partners but Gecas, General Electric's aircraft leasing arm, is understood to be arranging the financing. Virgin US and Airbus declined to comment.
Competing for business from low-cost carriers is critical for Airbus because they are the only US airlines currently placing new orders and they have aggressive plans for expansion.
Last week Henri Courpron - the president of Airbus North America who was speaking at the 13th Phoenix Aviation Symposium - said: "One hundred per cent of our single-aisle deliveries in North America this year are going to low-cost carriers."
The launch of Virgin US will realise the long-held ambition of Sir Richard Branson, the British entrepreneur, to start an airline in the US.
JetBlue remains Airbus's most high profile US success among low-cost carriers, with a fleet of 58 Airbus aircraft, and plans to add another 11 A320s this year. In March Spirit, a privately owned airline, said it would replace its fleet with up to 95 Airbus aircraft. This month Airbus also announced orders from Frontier and Atlantic Coast.
Boeing retains a strong position with AirTran and South- west, which operates 386 Boeing aircraft and has orders for 400 more by 2012. Richard Aboulafia, analyst at Teal Group, aerospace consultants, said: "Airbus has stolen a march on Boeing but they still have the 800lb gorilla, Southwest."
Nicholas Groeneveld-Meijer, spokesman for Boeing sales in the Americas, said Boeing's 737 remained the best offering for Virgin. He said the manufacturer had agreed to "guarantee the superior performance for all of the cities proposed and also some cities that were only under consideration". Boeing also offered training, financing and Boeing Connexion, with its internet services, in the factory installation.
"Their decision in regard to purchasing the aircraft focused on aspects of the business un- related to the airplane. We can only conclude these factors were extremely powerful in this case," Mr Groeneveld-Meijer said
Frisco would probably be better because of the limited space in Boston me thinks. Aren't Delta and Jet Blue expanding out of Boston? Can you have a good "hub" system out of Boston given its geographic location? VA will probably operate more point-to-point I guess. I'm sure Schwartzenegger will give Branson some tax breaks. Have fun with Fred Reid (when will the 1000+ RJ order take place?)...
Business Print article | Email
Airbus set for Virgin US order
By Caroline Daniel in Chicago
Published: April 27 2004 21:55 | Last Updated: April 27 2004 21:55
Virgin US, the proposed new low-cost airline, is poised to announce an order for up to 30 Airbus aircraft in a deal that will further the European manufacturer's inroads into the fast- growing sector.
The deal could be worth as much as $1.6bn at list prices, although such large orders are usually heavily discounted.
An announcement could come as early as next week, together with a decision about where the new airline will be based. The location is expected to be either San Francisco or Boston.
Securing a deal with Virgin US would mark a significant victory for Airbus, given that Virgin's other low-cost operations - such as Virgin Blue in Australia - use Boeing aircraft.
The Virgin US order is expected to include a mix of A319 and A320 short-haul aircraft, to be delivered from next spring. Virgin could buy up to 20 of the aircraft and lease a further 10.
It remains in talks with potential equity partners but Gecas, General Electric's aircraft leasing arm, is understood to be arranging the financing. Virgin US and Airbus declined to comment.
Competing for business from low-cost carriers is critical for Airbus because they are the only US airlines currently placing new orders and they have aggressive plans for expansion.
Last week Henri Courpron - the president of Airbus North America who was speaking at the 13th Phoenix Aviation Symposium - said: "One hundred per cent of our single-aisle deliveries in North America this year are going to low-cost carriers."
The launch of Virgin US will realise the long-held ambition of Sir Richard Branson, the British entrepreneur, to start an airline in the US.
JetBlue remains Airbus's most high profile US success among low-cost carriers, with a fleet of 58 Airbus aircraft, and plans to add another 11 A320s this year. In March Spirit, a privately owned airline, said it would replace its fleet with up to 95 Airbus aircraft. This month Airbus also announced orders from Frontier and Atlantic Coast.
Boeing retains a strong position with AirTran and South- west, which operates 386 Boeing aircraft and has orders for 400 more by 2012. Richard Aboulafia, analyst at Teal Group, aerospace consultants, said: "Airbus has stolen a march on Boeing but they still have the 800lb gorilla, Southwest."
Nicholas Groeneveld-Meijer, spokesman for Boeing sales in the Americas, said Boeing's 737 remained the best offering for Virgin. He said the manufacturer had agreed to "guarantee the superior performance for all of the cities proposed and also some cities that were only under consideration". Boeing also offered training, financing and Boeing Connexion, with its internet services, in the factory installation.
"Their decision in regard to purchasing the aircraft focused on aspects of the business un- related to the airplane. We can only conclude these factors were extremely powerful in this case," Mr Groeneveld-Meijer said
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