Virgin signs up for 105 planes

Virgin Blue, Australia's second-biggest carrier, signed a deal for as many as 105 Boeing 737 aircraft as a rebounding global economy spurs travel demand.

The carrier placed firm orders for 50 planes, took options on another 25 and future purchase rights for a further 30, it said, without disclosing a price.

The planes, which form Boeing's biggest deal in 18 months, will be delivered from June 2011 to 2017, it said.

The airline said pricing was "improved" from its last order in 2001 after the global recession sapped demand for new planes last year. The 737s, worth as much as US$8.1 billion ($11.4 billion) at average list prices, will be used to replace existing aircraft and to boost capacity.

"Virgin Blue was fortunate to see the opportunity and be in a position to take advantage of the downturn in the market," outgoing chief executive officer Brett Godfrey said.

The Brisbane-based carrier returned to profit in the six months ended December after a year-earlier loss as Australia avoided the worst of the global recession. Qantas Airways, the nation's biggest carrier, has also ordered new planes on rising domestic and Asia-Pacific travel demand.

John Borghetti, a former Qantas executive, is due to succeed Godfrey as CEO of Virgin Blue from May 8. The carrier reported a 1.6 per cent increase in February on domestic routes and a 23.6 per cent gain on international flights.

- BLOOMBERG