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Jul 4
Virgin Blue Coming to America?
Virgin Blue based in Australia has sent out requests to both Airbus and Boeing seeking jets that could do the long haul flights from Australia to the US.  Virgin Blue is looking to enter the long haul and very profitable Australia-US route by 2008.  If Virgin Blue enters the market, then Singapore Airline's hopes of entering the market could be crushed. 
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VirginBlue.jpgVIRGIN Blue has taken a significant step towards launching services to the US by asking aircraft manufacturers for proposals to supply up to five long-haul planes by early 2008.

Australia's No2 carrier issued a request for proposal (RFP) to Europe's Airbus and US rival Boeing late last month.

The move to put aircraft acquisition on a more formal footing is the first positive sign for the trans-Pacific plan since a hiatus caused by the ownership battle between Toll Holdings and Chris Corrigan's Patrick Corp put major decisions on hold.

It also means a further potential blow to Singapore's hopes of changing the federal Government's stance on allowing Singapore Airlines access to the lucrative Australia-US route.

The Government has indicated it is prepared to keep Singapore off the route while an Australian carrier establishes itself because it believes a home-grown operator would better boost tourism.


It is understood the Virgin RFP seeks up to five new aircraft by the first quarter of 2008 but says it would like deliveries to start next year if possible. It also seeks between eight and 12 planes in the longer term.

Spokeswoman Heather Jeffery last night confirmed the airline's continued interest in the US route and said Virgin was examining the economics of different city pairs using its preferred business model.

"Obviously, we need to start detailed examination of different aircraft types but I can't confirm any detail," she said.

The delivery time frame means Virgin will initially be looking at aircraft other than the new Boeing 787 ordered by Qantas and Air New Zealand or Airbus's competing A350.

However, availability and price could still be an issue after robust traffic growth has prompted a flurry of aircraft orders and boosted global demand for new planes.

The Australian

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