Virgin Australia plans to spend $73.6 million on fleet upgrade

Company says it will refurbish cabins and add more fuel-efficient aircraft

Virgin Australia Airlines will add eight Boeing 737-8 aircraft and 25 Boeing 737-10s to its fleet. EPA

Virgin Australia Airlines will spend A$110 million ($73.6 million) on upgrading its planes in Australia and will add more fuel-efficient aircraft to its fleet.

The airline will refurbish the cabins of its remaining Boeing 737 fleet, and add eight Boeing 737-8 aircraft and 25 Boeing 737-10s. Most will be delivered over the course of 2024, the company said on Saturday.

The first of the 737-8s was unveiled in Brisbane on Saturday to team members and their families.

The Boeing 737-8 aircraft are at least 15 per cent more fuel efficient per flight than the Virgin Australia Boeing 737-800 NG fleet, the company said.

“We anticipate our fleet renewal programme, together with other fuel-efficiency initiatives, will support over 80 per cent of our 2030 interim target to reduce Virgin Australia’s carbon emission intensity by 22 per cent,” said Virgin Australia Group chief executive Jayne Hrdlicka.

Bain Capital is planning to relist the airline in November through an initial public offering that could raise about A$1 billion ($670 million), the country’s largest IPO in two years.