boeing strike, page-8

http://au.biz.yahoo.com/081002/2/1z7m8.html

V Australia launch delayed till February
Thursday October 2, 2008, 6:23 pm

Virgin Blue Holdings Ltd has delayed the launch of its long-haul offshoot, V Australia, until February due to an ongoing strike at Boeing headquarters.

Virgin Blue, which has been battered recently by surging fuel costs, had planned to commence flights from Sydney to Los Angeles in mid-December with its new fuel efficient Boeing 777-300 planes.

But Virgin Blue said US aircraft manufacturer, Boeing, had advised it that it cannot predict the duration of the dispute at its Seattle plant and therefore cannot guarantee the delivery date of V Australia's launch aircraft.

V Australia had expected to take delivery of its first B777, the world's largest twin jet aircraft, in November with a further two scheduled to be delivered in the first half of December.

Virgin Blue said the revised launch date for V Australia was February 28, 2009.

V Australia's Brisbane to Los Angeles services, due to launch on March 1, 2009, are not affected.

Boeing ceased to assemble aircraft when almost 27,000 workers walked off the job in September after the International Association of Machinists and Aerospace Workers failed to reach agreement on a new contract with Boeing.

Jetstar, which has ordered 15 Boeing 787 Dreamliners is also expected to be affected by the delay.

Virgin Blue said it will contact all guests booked to travel from December 15, 2008 to January 16, 2009 to offer alternative arrangements.

It has suspended further advance ticket sales for travel between December 15 and February 28 in case the Boeing strike, now in its fourth week, should be prolonged.

Virgin Blue said the strike had no bearing on services operated by Virgin Blue, Pacific Blue or Polynesian Blue.

Virgin Blue closed down 0.5 cent to 36 cents.