Branson buys 'super-stretch' planes

Virgin Atlantic chief Sir Richard Branson today declared his confidence in the airline industry post-11 September by buying new long-haul aircraft worth £1.3 billion.

The order for 10 new Airbus "super-stretch" A340-600 planes will safeguard thousands of British jobs as aviation-related manufacturers suffer their worst markets in recent memory.

The wings are expected to be made by BAE Systems in Filton, near Bristol, while the Rolls-Royce engines will be made in Derby, a spokesman said. The first planes of the batch are due for delivery in June.

Sir Richard provisionally ordered the aircraft two years ago but had been widely expected to cancel in the wake of the US terrorist atrocities. Speculation has been rife that his airline has been losing money heavily from the slump in passenger numbers.

"We are now increasingly confident the long-haul market is coming back," said a Virgin Atlantic spokesman. Last week the airline, which has reduced its operations by 20 per cent since 11 September, said it was increasing frequency again on a number of routes including New York, Lagos and Shanghai.

Virgin is expected to have paid significantly less than the list price for the planes, which each seat 400. However, the order is seen as a coup for Toulousebased Airbus, which claims to be outstripping its US rival Boeing in sales. BAE Systems, formerly British Aerospace, owns 20 per cent of Airbus and employs about 9,000 staff in the UK.

This is London travel