Virgin Australia will cut 3000 jobs from its 9000-strong workforce in an effort to be a “stronger, more profitable carrier”.
An update to the ASX, which will be shared with employees on Wednesday, revealed the airline will go to a simplified all-Boeing 737 fleet, discontinue budget carrier Tigerair but maintain its commitment to regional and charter flying.
Long-haul international routes will be suspended until the global market recovers from COVID-19, which could be two to three years away.
Virgin Australia CEO Paul Scurrah said together with new owners Bain Capital, the Virgin 2.0 plan would secure 6000 jobs and re-establish the carrier as “an iconic Australian airline”.
“Our initial focus will be on investing in the core Virgin Australia domestic and short-haul international operation alongside our 10-million-member strong Velocity frequent flyer program, continuing to offer an extensive network of destinations, a domestic lounge network and value for money for customers,” Mr Scurrah said.
“Bain Capital recognises the importance of Virgin Australia’s loyal customers and that’s why they will be provided the value of their travel credits post-administration with validity significantly extended to ensure they have plenty of opportunity to book tickets to their favourite destinations.”