SYDNEY, Aug. 5 (Xinhua) -- Australia's second largest airline Virgin Australia will cut 3,000 jobs and reduce other costs in a bid to be more profitable and competitive in the post COVID-19 world.
In a statement published on the Australian Securities Exchange on Wednesday, Virgin Australia said it would reduce costs and axe 3,000 roles to adapt to uncertainties caused by the pandemic.
As the airline prepares to exit voluntary administration under the new owner Bain Capital, it will focus on domestic and short-haul international business, and will only retain the Boeing 737 mainline fleet, together with the regional and charter fleet, while all other aircrafts will be removed.
Virgin Australia will also drop its budget airline brand Tigerair Australia, however at the same time, retain the air operator certificate to provide options for low-cost operations when market recovers.
Virgin Australia chief executive Paul Scurrah said the airline had to streamline operations in order to survive the current pandemic.
"Our aviation and tourism sectors face continued uncertainty in the face of COVID-19... demand for domestic and short-haul international travel is likely to take at least three years to return to pre-COVID levels, which means as a business we must take changes to ensure Virgin Australia Group is successful in this new world," he said.
"Working with Bain Capital, we will accelerate our plan to deliver a strong future in a challenging domestic and aviation market."
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