Fed: Virgin signs 50 plane contract with Boeing
SYDNEY, Jan 16 AAP - Australian low fare airline Virgin Blue has signed a multi-billiondollar contract with US-based Boeing for up to 50 brand new 737 next generation aircraft.
Virgin said the maximum gross value of the contract would equate to about $5.4 billion.
The deal gives Virgin Blue 50 aircraft purchase rights, 10 of which have been convertedto firm orders for 737-800 aircraft, to be delivered by August 2004, lifting Virgin'sfleet size to 40.
This marks the first time Virgin has purchased aircraft instead of leasing with pre-deliveryfinance secured from two offshore banks.
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