Virgin America Orders 40 Airbus A320

It has been a great Farnborough air show for Airbus so far and the orders just keep coming in. Virgin America today announced it will add 40 Airbus A320s to its fleet. The list price for the planes is around $81 million, but Virgin probably got a decent discount.

The U.S. airline, which is partly owned by UK billionaire Richard Branson, has an Airbus-only fleet and, at this point, only serves cities in the U.S. from its California hubs Los Angeles, San Francisco and San Diego. With the additional aircraft, Virgin Atlantic is planning to extend its routes. New destinations in the U.S. will likely be Austin, Chicago and Dallas. The airline also plans on flying to its first ex-U.S. destinations by year's end. Those international destinations will likely be Cancun and San Jose del Cabo, both in Mexico.

To read the Bloomberg piece, please click here.

Further Delays with Boeing's 747-8

Boeing appears to be focusing all its attention on the rollout of its 787. Originally they planned to present a first version of the 747-8 at this year's Farnborough Air Show. But all those excited to see the 747-8 live will be disappointed. The 747-8 did not make it across the Atlantic. And it doesn't look like it will happen anytime soon.

For the fourth time, Boeing had to announce delays with its 747-8 program. Right now it looks like the updated jumbo jet will not be delivered to the first customer until next year. Apparently, Boeing does not have enough capacity to work on too many projects at the same time. The 787 has been a huge success so far while the 747-8 has been, well, more of a disappointment. Only three airlines have ordered the passenger version so far. In addition, Boeing will have to make urgent decisions on what to do with its 737. Will they redesign it, adding more efficient engines, or start developing a brand new single-aisle plane? Airbus is in a similar situation - the European plane maker will need to decide soon on whether it wants to revamp the A320 series or come up with a completely new plane. The competition is set to steal some thunder here - just look at Embraer's E series or Bombardier's C series...

To read more about Boeing's current problems, please read this Bloomberg piece.