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Virgin Australia Group announced today, it has reached an agreement with Boeing to restructure its B737 MAX order and delivery schedule.
Virgin Australia has sliced its deliveries of Boeing planes by half to just 25 B737 MAX 10 aircraft which are scheduled for delivery from mid-2023.
Virgin originally ordered for 23 smaller 737 MAX 8 and 25 larger MAX 10 planes in 2012.
MAX-8 was scheduled to arrive in mid-2021, and MAX 10 was to arrive in 2025, but the airline pushed back the deliveries as it struggled financially and then after it was forced to ground many planes due to COVID.
Now the airline said it would accept the first of its 25 new 737 MAX 10 planes in 2023.
Virgin went into voluntary administration in April this year, and is now it is owned by US private equity firm Bain Capital.
The new administration has stripped its domestic fleet back from around 80 jets to just 56 older variant 737s and also shut down its long-haul operations.
Virgin plans to replace its 737s with the new MAX 10s. The newer MAX 10 variant, which can carry up to 230 passengers compared to 176 on Virgin’s existing workhorse 737s.
“These enhancements will give us the ability to manage demand and deploy the B737 MAX 10 on high-density domestic and short-haul international routes or where there are constraints due to slot availability limitations.” said the Virgin Australia Group CEO and Managing Director Jayne Hrdlicka