VIRGIN BLUE PLANS TO FLY HIGHER, FARTHER AND FASTER WITH FIRST BOEING NEXT-GENERATION 737-700

Australia's newest discount carrier, Virgin Blue Airlines, today took delivery of the first Boeing Next-Generation 737 jetliner destined for Australian domestic use.

During a ceremony in Seattle, Virgin Blue Chief Executive Officer Brett Godfrey completed formalities to take delivery of the twinjet. The airplane will be leased from International Lease Finance Corporation.

The airplane, a Next-Generation 737-700, is the first of 14 Next-Generation 737s Virgin Blue plans to fly on routes from its Brisbane hub to Sydney, Melbourne, Adelaide, Townsville and other destinations. The airline recently converted some options to the larger 737-800 to accommodate growth.

Virgin Blue, an offshoot of Sir Richard Branson's inaugural Australian aviation operation, took to the air with a Brisbane-Sydney service in August last year. The airline currently operates a fleet of six Boeing 737-400s in all-economy configuration.

"We welcome these brand-new airplanes that will sharpen our competitive edge in the Australian market," Godfrey said . "The increased capability of these airplanes -- to fly farther, higher and faster -- improves our options for introducing new Australian cities to our network."

Godfrey added that people are flying Virgin Blue, not only because of its low fares but also for its unique style and service.

"This steady growth shows that while we continue to attract leisure travelers, we are grabbing an increasing share of the business market," he said.

The 737 family is no stranger to the South Pacific. Airlines in this region have ordered about 90 737s of various models.

"We're very pleased to see Virgin Blue introduce the Next Generation 737 to Australia," said Doug Groseclose, vice president International Sales, Boeing Commercial Airplanes. "Passenger and airline feedback from other parts of the world on the Next-Generation 737 family has been very positive. These aircraft draw many features from our class-winning Boeing 777, and there's no doubt that passengers appreciate the enhancements."

The Next-Generation 737-700, which can fly up to 3,260 nautical miles (6,037km) in a one-class configuration offering the lowest operating costs in its class. It features an all-new, spacious Boeing 777-style interior and the most advanced-design technology in the single-aisle market, such as an all-new wing and updated liquid-crystal displays in the flight deck.

Building a quieter, more fuel-efficient airplane was a top priority for Boeing engineers designing the Next-Generation 737 family. The new, advanced-technology wing design on the models helps improve fuel efficiency. The model's new CFM56-7 engines produced by CFMI, a joint venture of General Electric Co. of the United States and SNECMA of France, meet community noise restrictions well below current Stage 3 limits and below expected Stage 4 limits. Emissions also are reduced beyond required standards.

The 737 is the best selling commercial jetliner in history. To date, more than 3,900 737s have been delivered to more than 200 customers.

Virgin Blue currently employs more than 580 team members including pilots, cabin crew, pit crew, reservations staff, ground crew and office staff. With the arrival of the Next-Generation jetliner, the airline's staff and fleet will double in size over the next 12 months.