Virgin Blue flags $5.4bn spree to spread wings with long-range fleet

While officials would not name specific routes or destinations for the new planes the delivery of which could be staggered over eight years the move represents a major expansion for Virgin, which plans to fly internationally this year.

The deal struck with manufacturer Boeing means thousands of new seats could be available for customers on the budget flyer's 737s. Ten planes will be delivered by August 2004, with the first to arrive this August, but some of the later planes may be used to retire older aircraft.

To have a range of six hours' flying time, the planes with special wing technology to extend their range will be able to fly as far as Singapore and Samoa.

The internal configuration of the planes will be different from current models, probably featuring more room, because they will be serving passengers travelling longer distances.

Virgin's chief executive, Brett Godfrey, said the airline had taken advantage of the extremely competitive aviation environment post-September 11 to secure what he described as the best deal he had seen in 15 years.

``Let's make no mistake this has been the best time in aviation history to buy aeroplanes and I do not believe we'll ever see this sort of deal done again," he said.

He estimated his airline now has a quarter of the domestic aviation market, and he was aiming to raise this to a third by the end of the year. ``I think we'll get there, based on the capacity we bring in," Mr Godfrey said, referring to plans to expand the company's fleet of aircraft.

For the first time, Virgin has borrowed money to buy the planes, a change from its previous strategy of leasing the aircraft it uses, in what Mr Godfrey said was an attempt to bring down costs even further.

The aircraft will likely be a mixture of 737-700s and 737-800s, although Mr Godfrey said the larger 737-900s were also under consideration.

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