Virgin Australia (VA, Brisbane International) will increase the number of B737-8s in its fleet to eight following confirmation it will take another four of the type from 2023. In April, the airline announced it had obtained four MAX 8s - the first of the type to join the fleet, with the delivery of those planes to begin early next year.
The airline did not disclose where it would be sourcing the jets from i.e. from Boeing (BOE, Washington National) directly or via lessors. It was not immediately available for comment either.
The arrival of the MAX marks a departure from Virgin Australia's one aircraft type operating model. Since emerging from voluntary administration in November 2020, except for two B737-700s, the airline has only operated B737-800s. When all the MAX 8s have arrived, Virgin Australia's B737 fleet will comprise 92 planes - a B737 fleet growth of 60% since November 2020.
"Despite the challenges faced by our industry, demand for travel remains strong and we’re responding with a focus on the long term by increasing the efficiency and sustainability of our fleet with four additional Boeing MAX 8s joining our fleet from 2023," says Virgin Australia CEO Jayne Hrdlicka.
The MAX 8s are in addition to the twenty-five B737-10s the airline expects to start arriving from mid-2023.
Meanwhile, for the second time this year, Virgin Australia and its owners, Boston-based Bain Capital, have been forced to comment on rumors of an imminent IPO.
As reported by The Australian, Bain Capital managing director Ryan Cotton told a Virgin Australia employee briefing this week that despite the airline now performing well, the financial markets remained volatile and any IPO in the short term was unlikely.
"It will be unlikely to happen this year, but within the next two or three years, that’s our goal," Cotton said. "We’ve put up a really great quarter which is awesome. We need [..] some more really strong quarters."
After cutting employee numbers by around 3,000 staff (or one-third of the workforce) in the latter half of 2020, Virgin Australia has since restored 2,000 of those positions. The airline's workforce now stands at around 7,000. In a tightening labour market, frontline employees are expecting news of a 2% bonus this week, with further bonuses expected next year.
