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World Virgin Australia cuts 3,000 jobs and plans to focus on shorter flights

09:06  05 august  2020
09:06  05 august  2020 Source:   cnn.com

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Virgin Australia has announced a dramatic restructure to create a domestic-only airline that involves the loss of 3 , 000 jobs and half its fleet of aircraft. Virgin Australia ’s new owner, US private equity group Bain Capital, plans to cut the airline’s fleet in half and run only domestic flights for the

Virgin Australia Holdings Ltd. is planning to cut a third of its workforce under the ownership of Bain Capital as the buyout firm attempts to resurrect and But the plan it seems is to suspend long haul international flights . That's what they said this morning. So race to Los Angeles and Tokyo remains

Virgin Australia is slashing about a third of its headcount, offloading some planes and focusing on shorter flights under its new owner, Bain Capital.

a large passenger jet sitting on top of a runway: Virgin Australia wide-body aircrafts are seen parked in the Brisbane Airport on August 05, 2020 in Brisbane, Australia. Virgin Australia has announced 3000 job cuts as part of a radical cost reduction strategy for the airline, while its discount provider Tiger Air will close. (Photo by Albert Perez/Getty Images) © Albert Perez/Getty Images Virgin Australia wide-body aircrafts are seen parked in the Brisbane Airport on August 05, 2020 in Brisbane, Australia. Virgin Australia has announced 3000 job cuts as part of a radical cost reduction strategy for the airline, while its discount provider Tiger Air will close. (Photo by Albert Perez/Getty Images)

The airline announced a sweeping restructuring plan Wednesday as it works to reduce costs amid the coronavirus pandemic.

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Meanwhile, Virgin Australia 's new owner Bain Capital is set to cut 3 , 000 jobs . "Working with Bain Capital, we will accelerate our plan to deliver a strong future in a challenging domestic and global Media captionA Virgin Australia flight attendant says goodbye on a final international flight .

Virgin Atlantic plans to cut more than 3 , 000 jobs , dealing a fresh blow to the airline industry that has been brought to its knees by coronavirus. The airline piled fresh misery on Gatwick, saying it would turn its back on the airport where billionaire Sir Richard Branson launched Virgin Atlantic’s inaugural flight

To adjust to ongoing challenges, Virgin Australia will cut 3,000 jobs, remove some of its aircraft and discontinue Tigerair Australia, the airline's low-cost carrier, it said. It also plans to focus more on domestic and short-haul overseas flights as international travel is largely halted.

"Making these changes now will secure approximately 6,000 jobsonce market demand recovers, with potential to increase to 8,000 jobs in the future," the airline added in a statement. The company previously employed about 10,000 people.

Virgin Australia, the country's second biggest airline, has had a tumultuous year. It was snapped up by Bain Capital in June after failing to receive the government support it had asked for and filing for voluntary administration.

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Virgin Australia said in an announcement to the Australian Securities Exchange on Wednesday that it would axe its budget Tigerair Australia brand and 3 , 000 jobs It would also continue the suspension of long-haul international flights and retire part of its fleet, with the country's borders likely to remain

Virgin Australia , Virgin Australia Regionala and the budget carrier Tigerair will have their operations merged and 750 jobs will be lost under the Photograph: David Gray/Reuters. Virgin Australia has announced it is cutting 750 corporate and head office jobs as part of a restructuring plan forced on

Even when the industry recovers, the company believes airlines will "look very different than the way they did previously," according to Virgin Australia CEO Paul Scurrah.

"Our aviation and tourism sectors face continued uncertainty in the face of Covid-19, with many Australian airports recording passenger numbers less than 3% of last year," he said in a statement.

Scurrah estimates that demand for travel — even domestic and short-haul international flights — will take "at least three years" to return to pre-crisis levels.

The announcement followed news that Virgin Atlantic, which is also part of Richard Branson's Virgin Group, filed for bankruptcy in the United States.

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This is interesting!