- Virgin Australia has revealed its plans after its was bought out of administration by Bain Capital.
- Its new changes include simplifying its fleet and slashing 3,000 jobs.
- The airline plans to bring back up to 8,000 jobs in the future when the travel industry recovers.
- Visit Business Insider Australia’s homepage for more stories.
Virgin Australia, which was recently rescued from voluntary administration by Bain Capital, has outlined its future plans.
Among its plans, the airline will be streamlining its fleet, slashing 3000 jobs and discontinuing its Tigerair operations.
“We expect approximately 3,000 roles will be impacted as a result of the changes announced today,” Virgin Australia Group CEO and Managing Director Paul Scurrah said in a statement.
“However, our intention is to secure approximately 6,000 jobs when the market recovers with aspirations of up to 8,000 in the future.”
Scurrah said those who leave the airline will have their entitlements honoured, be supported through the company’s alumni program, get a two-year extension of employee travel benefits and get early access to retiree and long service benefits.
Other changes in the plan include Virgin using an all Boeing 737 mainline fleet – keeping its regional and charter fleet. It will be removing its ATR, Boeing 777, Airbus A380 and Tigerair Airbus A320 aircraft.
All travel credits and Velocity frequent flyer points will remain valid.
Virgin said it is discontinuing the Tigerair brand “as there is not sufficient customer demand to support two brands at this time.” However, it is keeping Tiger’s Air Operator Certificate to potentially operate a cheaper carrier in the future.
The airline will consolidate its footprint – moving its headquarters to Brisbane’s Southbank – and continue the suspension of long-haul international flights until the global travel market recovers.
Scurrah said in a statement that together with Bain Capital, the plan aims to reestablish Virgin Australia as an iconic Aussie airline and provide competition in the market.
“Demand for domestic and short haul international travel is likely to take at least three years to return to pre-COVID-19 levels, with the real chance it could be longer, which means as a business we must make changes to ensure the Virgin Australia Group is successful in this new world,” he said.
Scurrah added that the company will ramp up its plans to “deliver a strong future in a challenging domestic and global aviation market.”
“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,” Scurrah said.
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