Virgin Blue Holdings orders Boeing planes worth $634.5 Million

Australia’s second-biggest airline Virgin Blue Holdings has agreed to purchase nine Boeing planes worth around $634.5 million.

Virgin Blue is aiming to expand using these new fuel-efficient planes in the Australian market. The deliveries for this new order are expected to begin in 2008.

Boeing had confirmed this order sometime ago but declined to reveal the name of the buyer.

Virgin Blue spends around 23 percent of its revenues on fuel expenses and is trying to cut on these expenses. The new generation planes would help them lower the fuel bills as Virgin Blue Chief Executive Officer Brett Godfrey said in the statement: “The next generation 737 is a reliable and cost-efficient aircraft, which is essential in our competitive low-cost market.”