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A Virgin Australia spokesperson said it had been alerted to another “short delay” in the delivery of the Max-8s that was beyond its control. The carrier has also ordered 25 Max-10s which are not affected by this delay.
“As a result of the delay, we will operate our Cairns-Haneda service using our existing Boeing 737-700 aircraft for a short period,” the spokesperson said.
Boeing has been beset by manufacturing delays since the pandemic. Credit: Bloomberg
“The good news is that Virgin Australia customers will not be impacted and our schedule of Japan services will continue as planned.”
The route is the carrier’s first foray into long-haul international services since it was plucked out of administration by Bain Capital in 2020. Virgin’s old guard had intended to start flying from Brisbane to Tokyo in March 2020, but that plan fell through because of the COVID-19 pandemic.
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Boeing has not shied away from the manufacturing delays it has experienced since COVID-19. The Max-8 delay is related to Spirit Aero Systems’ installation of two fittings in the aft fuselage section of the aircraft. Multiple major carriers have been affected, including Southwest Airlines in the United States.
Two crashes in 2018 and 2019 grounded all Max-8s across the world for two years while the manufacturer addressed regulatory concerns. They were cleared to return to service in 2020 and are now used by airlines all over the world with no issues.
New low-cost carrier Bonza became the first Australian carrier to operate the low-emission narrow-bodies earlier this year. Virgin’s temporary replacements – the 737-700s – have 48 fewer seats and a higher carbon footprint.
The order delay is the latest in the string of blows to the carrier which hopes to return to the ASX this year.
Virgin cancelled local presentations with potential investors last month due to “unforseen circumstances”. In February, Bain appointed UBS, Barrenjoey and Goldman Sachs to steer the potential float, and has said it will retain a significant stake in the airline.
On Tuesday, Virgin chief executive Jayne Hrdlicka announced she would be taking personal leave following the death of her husband after a four-year battle with cancer.
“For his sake, I am grateful that the suffering is behind him,” she said in a LinkedIn post.
The carrier will post its first full-year profit in 10 years in September, following a bullish half-year revenue of $2.5 billion.
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