Virgin orders news planes for ‘bold new strategy’ on FIFO routes in Western Australia

Virgin Australia will spend ‘hundreds of millions’ on new Embraer 190-E2s and add 150 more jobs, including pilots and cabin crew, on its Western Australian fly in, fly out routes.

Virgin Australia is chasing a bigger slice of the important fly-in, fly-out market in Western Australia by introducing the first new aircraft since last century.

An order for eight Embraer 190-E2s has been lodged with the Brazilian manufacturer, with the first due to arrive in October next year.

The 100-seat aircraft will replace Virgin Australia Regional Airlines’ three Fokker 100s, which have an average age of 31.4 years.

Nick Rohrlach, who is responsible for Virgin Australia Regional Airlines (VARA) as well as being the Velocity CEO, said the airline was already the biggest operator of FIFO services in WA with 38 per cent of the market, and the additional planes would help them grow further.

“Of course there’s a lot of older aircraft flying here (in WA) so this is quite a bold new strategy, and we’re really excited to bring new investment and new technology to the market,” Mr Rohrlach said.

“The focus for these eight is on the WA business, replacing the Fokkers and then hopefully servicing further growth in the WA and regional market.”

He would not divulge the size of the investment in the E2s but said “rest assured it was in the hundreds of millions”.

The new aircraft will also mean 150 more jobs, including pilots and cabin crew.

Virgin Australia will bring the first brand new aircraft to regional WA routes and FIFO services since last century, when it takes delivery of Embraer 190-E2 jets next year.

Mr Rohrlach said Virgin Australia also considered Airbus A220s for its regional expansion but settled on the Embraer jets because they could better handle the “unique conditions” of WA.

“At airports up in the Pilbara for example, you’re talking about needing to take off in 50 degree temperatures,” said Mr Rohrlach.

“That’s why there’s been very specific aircraft that have been flying here for years, so part of our selection criteria was being able to handle those conditions.”

Also helping to clinch the deal was Embraer’s commitment to delivering new aircraft on time, in contrast to Virgin Australia’s experience with Boeing, which ­delayed the arrival of new 737 Max 8s.

“ (Embraer) was very keen to explain how incredibly on-time their delivery schedule is at the moment. That was one of their key selling points, and so we’re very confident and looking forward to working with them to make sure that is the case,” said Mr Rohrlach.

No decision has yet been made on the seven A320s that make up the rest of the VARA fleet, which have an average age of 16.7 years.

For now they remained a “key part of VARA’s network” Mr Rohrlach said, adding that “longer term we will have to decide what do with those”.

Considered a possible contender for the job of Virgin Australia CEO, Mr Rohrlach was not commenting on the extended search for a replacement for Jayne Hrdlicka.

The investment highlights the competitiveness of the lucrative FIFO market in WA, which is also serviced by Qantas’s Network Aviation, Alliance and National Jet Express — 50 per cent owned by Rex Airlines — and several smaller operators.

Bureau of Infrastructure, Transport and Regional Economics data shows charter activity out of Perth Airport continues to grow, with 3.14 million passengers carried in the year to May, up from 2.8 million in the previous corresponding period.

Embraer chief commercial officer Martyn Holmes said the E2 was a game changer, offering “enhanced aerodynamics and novel wing design as well as comfort, quietness and low emissions”.

“It has been certified to fly with blends of up to 50 per cent sustainable aviation fuel, and has demonstrated through test flights the engine’s operability with 100 per cent SAF,” he said.

Originally published as Virgin orders news planes for ‘bold new strategy’ on FIFO routes in Western Australia