Virgin Australia will soon start using Tigerair for flights to Bali from Perth, Melbourne and Adelaide.
The move is part of a push to get the airline’s international operations to profitability. Revenue from the airline’s international division fell 3.3% in the financial year just ended due to increased competition, particularly in the South East Asian routes.
Virgin has introduced business class on the Tasman and Pacific Islands routes to drive revenue growth. It’s also introduced new business class suites on the fleet of long-haul Boeing 777 aircraft.
This led to an underlying earnings improving $2.4 million in the second half of the 2015 financial year.
Today Virgin announced the second part of the plan to improve performance, the launch of the Tigerair Australia brand in the short-haul international market.
From March 2016, Tigerair Australia will use three all economy configured Boeing 737-800 aircraft to fly to Denpasar in Bali:
- Adelaide-Denpasar: five return services a week
- Melbourne-Denpasar: daily return services
- Perth-Denpasar: daily return services
Virgin will also increase capacity into New Zealand, Fiji and the Solomon Islands.
This will represent more than 52,000 additional seats on trans-Tasman and Pacific routes during the 2016 financial year.