WWW - Posts tagged Virgin Airlines at BloggingStocks

Virgin Airlines posts

Virgin to expand Atlantic route: Bad news for U.S. airlines?

Posted May 1st 2007 2:50PM by Tom Barlow (RSS feed)
Filed under: Press Releases, Products and Services, Competitive Strategy, Boeing Co (BA), Southwest Airlines (LUV), Contl Airlines'B' (CAL), JetBlue Airways (JBLU)

Virgin Atlantic Airlines, the empire built by Brit Richard "Rocketman" Branson, is planning to grab a larger share of the world's most profitable air traffic, the business class North America-Europe traveler. According to Bloomberg.com, it will take advantage of the new 'open skies' agreement between the U.S. and the E.U. to commence service from continental airports within the next two years. This is part of its overall strategy to extend the Virgin brand worldwide.

The new agreement will permit Virgin to launch flights to the U.S. from any European airport. In the past, Virgin has been restricted to its home turf in the U.K. The change in regulations will allow other players in the trans-Atlantic picture, including Air France and Lufthansa, to expand their services as well. Almost 21,000 flights with 5.25 million available seats flew the route in January of this year.

Boeing (NYSE: BA) recently announced that Virgin has ordered 15 of its new 787-9 Dreamliner aircraft, $2.8 billion worth.

US Airways dumps $3.2 billion Airbus order, goes with Boeing

Posted Apr 25th 2007 10:45AM by Tom Barlow (RSS feed)
Filed under: Boeing Co (BA)

Boeing Co. (NYSE:BA) continues to pile up business in the wake of Airbus' A350 woes. Today the Times of London reported that U.S. Airways Group (NYSE:LLC) is canceling its order for 20 of the A350s in favor of 20-30 of Boeing's new 787 Dreamliners. The Airbus order had been valued at $3.7 billion, while the Boeing purchase is estimated at $3.2-$4.9 billion.

Just yesterday, Virgin Airlines announced they intend to purchase as many as 43 Dreamliners, $8 billion worth, to replace their Airbus fleet.

This despite Airbus dropping the price of its A350 by 50% in a desperate attempt to stop the bleeding. Boeing is thought to be knocking about a third off the price of its Dreamliner.

What Airbus can't match is delivery date. With ~~a two-year~~ delays blamed on wiring and other problems with the new A380, the A350s aren't expected to go into operation until 2013-14, while the first Dreamliner is expected to enter service in May of 2008.