Virgin Atlantic Confirms Interest in Airbus A3XX and Boeing 747X Stretch.

Business Editors/Travel & Airline Writers

NORWALK, Conn.--(BUSINESS WIRE)--June 8, 2000

Virgin Atlantic Airways announced today that it has confirmed to Airbus Industrie its strong interest in becoming one of the first European launch customers for the Airbus A3XX.

Virgin Atlantic also confirmed that it has expressed an interest in acquiring the proposed new stretched Boeing 747-400 aircraft - the 747X stretch. Virgin Atlantic can envision purchasing both aircraft to maintain fleet flexibility and versatility to match the airline's planned strong growth in the next decade.

Virgin Atlantic is among the first airlines to publicly endorse the A3XX project and plans to place an order for a number of aircraft for delivery late 2005 onwards. Recent talks between Virgin and Boeing have also been positive, and Virgin is considering an initial order for a number of aircraft for delivery 2005.

Sir Richard Branson, chairman of Virgin Atlantic, commented on the announcement:

"Our corporate strategy is to maintain our recent spectacular growth, and we hope both these radical new aircraft will play a key role in our future expansion.

"The A3XX represents a terrific investment for Virgin Atlantic. We have built our reputation on innovation, and the A3XX will provide a quantum leap in passenger service, as well as providing a cost-effective solution to the increasing problems of capacity constraints at the key airports served by the airline.

"Although an all new design, there are strong similarities with our current fleet of 14 Airbus aircraft, and the A3XX will compliment our existing order of ten A340-600's to be delivered beginning 2002.

"Although building on the 747-400, the proposed new 747X stretch is actually a radical development with a range of new features from flight deck to more spacious cabin areas. The 747 is arguably the most successful commercial aircraft of all time, and Boeing looks set to continue that winning formula well into this century."

Noel Forgeard, chief executive officer of Airbus Industrie, expressed the consortium's great satisfaction with Virgin Atlantic's decision:

"We are extremely honored that a European airline of the standing of Virgin Atlantic is interested in becoming a launch customer for the A3XX. This is another public endorsement for the aircraft by a European airline, and it further confirms the market's need for this all-new very large aircraft."

The A3XX is currently under development at Airbus Industrie. The initial version, the A3XX-100, will be able to carry 555 passengers in a standard-three class layout. Based on an entirely new design integrating the most advanced technologies, Airbus Industrie claims that the A3XX-100 will offer 20 percent lower seat operating costs compared to the 747-400, while providing up to 40 percent more seats and up to 10-15 percent more range.

This new aircraft also offers exciting new opportunities which Virgin Atlantic's product development team are now exploring to provide larger bar areas; extended beauty therapy treatments for business passengers; separate male and female toilets; and new leisure areas for economy passengers.

Boeing plans to offer the 747X stretch in 2005. It will be able to carry 504 passengers over distances of up to 7,800nm/14,450 km or with 522 passengers over distances of up to 7600/nm 14,075km. Boeing claims that the 747X stretch will provide one to three percent lower seat mile costs compared with the A3XX. The aircraft will also provide more onboard space above the passenger cabin for storage and/or rest areas.

Sir Richard also commented on the economic benefits of the new aircraft:

"The new Airbus aircraft has a strong British content, with wings to be manufactured by British Aerospace, while both it and the new Boeing could be powered by Rolls Royce engines."

Virgin Atlantic and associated airline Virgin Sun are already operating 14 Airbus Industrie aircraft, including ten A340's, an A321, delivered just two weeks ago with a second to be delivered, and three A320's. Virgin Atlantic also has an order placed for ten ultra-long range high capacity A340-600's, with options for a further eight, and was the launch customer for this new four-engine aircraft due to enter into airline service in 2002.

Virgin Atlantic operates 17 Boeing 747s of which six are 747-400s.

For further information please contact Airbus Industrie Press Department at (33) 056193 3387, or Boeing at [phone] or Virgin Atlantic Press Office at [phone] or visit our website at www.virgin.com