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Virgin Australia to add seven more planes as demand rises -Breaking

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© Reuters. FILEPHOTO: The rainbow created by the passing rainshow sways above Virgin Australia plane at Sydney Airport, Australia. August 5, 2016. REUTERS/Jason Reed/File Photograph

By Jamie Freed

SYDNEY, Reuters – Virgin Australia announced on Thursday that it will add seven Boeing (NYSE: Co 737 NG) planes to its fleet. This would help it reach its goal to regain a third of Australia’s domestic market.

Australia’s second biggest airline announced that it would have a fleet comprised of 84 737 NGs with the agreement letters of intention. That is one less than it used before entering voluntary administration last January, when it handed many of its planes back to lessors.

Bain Capital is now the owner of Qantas Airways Ltd. and Regional Express Holdings Ltd. (Rex), in an international market that’s recovering as more states open their borders.

Jayne Hrdlicka, Chief Executive of Virgin Australia said that “this fleet growth underlines our confidence in the future business and industry generally.” “Vaccination rates have risen, the borders are open, and there is a return to demand,” he said.

All staff will be back to work next month, according to the airline. They also said they would continue recruiting for 600 more roles in all areas of business. Because of low demand, many employees were placed on unpaid leaves.

Qantas is also planning to bring back its entire staff next month, at a moment when the airline has been reporting a rise in bookings due to states opening their borders.

Rex has announced that it will begin flying on the popular Sydney-Brisbane/Melbourne-Brisbane routes as soon as possible.

Rex stated that it will offer one-way tickets as low as A$69 ($50.16), challenging mid-market Virgin Australia, and Qantas’ low-cost arm Jetstar.

($1 = 1.3757 Australian dollars)

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