Virgin Australia orders 23 Boeing 737 Max aircraft

Australia's second-largest airline also said it has deferred delivery of some Boeing 737NG aircraft to beyond 2016 to give it flexibility to develop the right mix of narrow-body and wide-body aircraft.

A Virgin spokeswoman declined to provide a number for the delayed aircraft. The airline's statement said that 31 scheduled deliveries of Boeing 737-800 aircraft remained on track for 2013-2016.

Virgin could be paying less for the new planes because airlines often negotiate discounts to official list prices.

Virgin, which in May carried more passengers than market leader Qantas Airways Ltd. in a single month for the first time, said the new Boeing 737 MAX aircraft will begin flying between 2019 and 2021.

Boeing developed the MAX series to replace its Next Generation family of planes. The new aircraft use less fuel and reduce CO2 emissions.

Virgin said it expects all of its older Boeing 737-700 aircraft to exit its fleet by the end of 2013.

(Reporting By Jane Wardell; Editing by Matt Driskill)