Virgin Australia’s nervous wait for new Boeing 737 Max 8s

After two delays, Virgin Australia faces a nail-biting wait for its first Boeing 737 Max 8, which is needed for the airline’s new Cairns-Tokyo service starting in June.

Virgin Australia is counting on new Boeing 737 Max 8s arriving in time for the airline’s much anticipated Cairns-Tokyo flights from June 28. Picture: Brendan Radke

After two delays, Virgin Australia faces a nail-biting wait for its first Boeing 737 Max 8, which is needed for the airline’s new Cairns-Tokyo service starting in June.

Delivery of the first of eight 737-8s as they are known was initially scheduled for February, then bumped to April without explanation.

Now due to a manufacturing issue by a supplier to Boeing, the Jayne Hrdlicka-led Virgin Australia is not able to say when the new narrow-body jet will land.

Boeing is similarly in the dark as to how extensive the delay will be, saying “we regret the impact this issue will have on affected customers”.

A Boeing statement said the issue related to a “non-standard manufacturing process” that was used by Spirit AeroSystems during the installation of two fittings in the aft (rear) fuselage section.

“This is not an immediate safety of flight issue and the in-service fleet can continue operating safely,” it said. “However, the issue will likely affect a significant number of undelivered 737 Max aeroplanes both in production and in storage.”

Virgin Australia was awaiting further updates from Boeing with regard to the impact on the aircraft delivery.

Virgin Australia CEO Jayne Hrdlicka. Picture: Brendan Radke

On a more positive note, a dedicated flight simulator to be used to train pilots on the new aircraft had arrived in Perth, and was being tested and certified.

Although the airline remained confident the Max 8 would arrive in time for the first Cairns-Tokyo flight on June 28, the issue was largely out of its hands.

After going into administration in April 2020, Virgin Australia disposed of its widebody fleet including Boeing 777s and A330s.

The move helped reduce costs by simplifying the fleet, but it left the airline with no aircraft suitable for long-haul flights.

The Boeing 737 Max order was intended to help address that, with the extra range of the 737-8 sufficient to cover the distance from Cairns to Tokyo (Haneda).

At 5864km, the flight is just out of the range of Virgin Australia’s Boeing 737-800s which can fly a maximum of 5765km.

The 737-8 has a maximum range of 6570km, making the flight possible in the planned format of eight business class seats and 168 seats in economy.

Adding to the pressure for Virgin Australia was the need to take up the slots at Tokyo’s Haneda Airport, which were granted to the airline after a bitter tussle with Qantas in 2019.

A Boeing 737 MAX 8 airliner takes off from Renton Municipal Airport near the company’s factory in Washington. Picture: AFP

Days before Virgin was due to begin flights from Brisbane to Haneda, the Covid-19 pandemic shut down the international travel industry and Australia’s borders were slammed shut.

Three years on Virgin faced the prospect of losing its access to Haneda if the slots were not used, prompting the new Cairns-Tokyo route to be operated by 737-8s.

All eight 737-8s ordered by Virgin Australia were expected to be delivered in 2023, taking the airline’s fleet up to 92 aircraft, after shrinking to as low as 58 post-administration in 2020. As well as helping to reduce the average fleet age from 11.5 years, the more fuel-efficient 737-8s will assist with the airline’s target of net zero carbon emissions by 2050.

Virgin Australia has not said if it is buying the 737-8s outright or leasing the aircraft ahead of the airline’s planned initial public offering (IPO) later this year.

When the airline collapsed in April 2020 with debts in excess of $7bn, it was revealed Virgin was paying $90m a month to aircraft lessors.

Arrangements were renegotiated as part of the sale to Bain Capital and were being overseen by Virgin Australia’s leasing management team to avoid a cost blowout as the contracts came up for renewal.

It remained uncertain if Virgin Australia would add any widebody aircraft to its fleet in order to reinstate destinations such as Los Angeles and Hong Kong to its network.

Late last year Ms Hrdlicka told the Flight Centre Illuminate conference that Virgin Australia was “looking at a world of possibilities and extending our reach”.

Originally published as Virgin Australia’s nervous wait for new Boeing 737 Max 8s