AAirlines

Virgin Australia reduces order for 737 MAX aircraft.

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Virgin Australia reported Wednesday that it had restructured its order for Boeing 737 MAX aircraft, reducing the number of orders from 48 to 25 and delaying the first deliveries by two years until mid-2023.

See also: Virgin Atlantic goodbye the Boeing 747.

Australia’s second-largest airline, now owned by U.S. private equity group Bain Capital, said in a statement that it would take 25 of the largest variant, the MAX 10, but not the 23 MAX 8s it had previously ordered, Reuters reported.

See also: Emirates receives first of three A380s will incorporated in December.

Virgin has removed the 777 and Airbus A330 wide-body aircraft from its fleet, focusing its operations around the 737 as part of an effort to reduce costs by repositioning itself as a mainly domestic mid-tier airline rather than a full-service one.

“The restructured agreement and changes to the Boeing 737 MAX 10 delivery schedule give us the flexibility to continually review our future fleet requirements, particularly while we wait for international travel demand to return,” said Virgin CEO Jayne Hrdlicka.

The 737 MAX 10 would be deployed on high-density domestic routes and short-haul international routes.

By Jamie Freed

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