Thursday, January 28, 2010

Virgin Blue eyes new planes; may buy Embraer jets

* Says may replacing older planes with newer aircraft
* Leases on 30-50 aircraft expiring in next few years
* Currently operates Embraer E-170 and E-190 aircraft

By Harry Suhartono
Defense News ~ SINGAPORE, Jan 28 (Reuters) - Australian budget carrier Virgin Blue (VBA.AX) said on Thursday it may replace some of its existing planes with new aircraft and was in talks with several suppliers including Brazil's Embraer (EMBR3.SA).
"We are in the market for planes," Virgin Blue's CEO Brett Godfrey told reporters on the sidelines of a conference in Singapore.
"We've got a whole bunch of airplanes coming out of lease over the next 2-3 years and we are looking to take some more, including from Embraer," he said.
Virgin Blue's present fleet of 68 aircraft is made up of Boeing 737s and Embraer E-190s and E-170s, according to the firm's website. Godfrey said the leases on 30-50 of these aircraft will end in the next few years.
Embraer, which makes private jets and smaller commercial aircraft, has been trying to win more business from Asia's budget and regional carriers, many of which use single-aisle jets from Boeing (BA.N) and Airbus, a unit of EADS (EAD.PA).
Virgin Blue, whose main shareholder is Britain's Virgin Group, also operates New Zealand-based Pacific Blue and Polynesian Blue, which it launched with the government of Samoa.
(Reporting by Harry Suhartono; Editing by Kevin Lim)

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