Virgin Australia will discontinue the Tigerair Australia brand under its new ownership of Bain Capital.
Virgin Australia has just released details of its plans as it comes out of voluntary administration under the ownership of Bain Capital.
The carrier will discontinue the Tigerair Australia brand, but maintain the Air Operator Certificate (AOC) and necessary support to provide the option for ultra-low-cost operations when the market recovers.
Virgin Australia will focus on its core domestic and short-haul international business, under a strategy for a “stronger, more profitable and competitive Virgin Australia,” the carrier said.
This involves a cost reset to meet lower demand, including a reduction in cost base, with about 3,000 jobs to be lost and around 6,000 maintained when the market recovers.
The carrier will move to an all Boeing 737 mainline fleet and maintain the regional and charter fleet, but remove ATR, Boeing 777, Airbus A330 and Tigerair Airbus A320 aircraft types.
Long-haul international flying will remain suspended until the global travel market recovers.
CEO Paul Scurrah said demand for domestic and short-haul international travel will likely take three years to return to pre-COVID-19 levels, “with the real chance it could be longer”.
“As a business we must make changes to ensure the Virgin Australia Group is successful in this new world,” he said.
The carrier also flagged significant investment in the “comprehensive digital replatforming of both the airline and Velocity Frequent Flyer program”.
Virgin Australia said it would provide customers with the value of their travel credits post-administration.
More details in today’s issue of Travel Daily.