Virgin Atlantic buys A340s

From:         kls@ohare.Chicago.COM (Karl Swartz)
Organization: Chicago Software Works
Date:         08 Apr 93 15:38:10 PDT
References:   1 2
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Last month there was a discussion of Airbus approaching United about
buying A340s, allegedly offering a very good deal on the cancelled
Northwest orders which were already far along in production.

Well, it looks like Airbus found a buyer in the guise of Richard
Branson's Virgin Atlantic.  Yesterday, Virgin agreed to buy four
A340-300 aircraft for about $453 million.  Based on estimates that
"list" price for an A340 (not that there really is such a thing)
is about $120 million each, this doesn't seem like all that great
a deal, though the delivery times certainly are: one in each of the
last three months of this year, with the fourth to come in October,
1994.

This is an interesting departure for Virgin, which in the past has
said they were inclined to stick to a single-type fleet by buying
either new 747-400s or more used 747s.  The single-type fleet has
done wonders for Southwest, and departure from that strategy has
in part nearly killed America West.  I wonder what the effect will
be on Virgin Atlantic?

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