admin Virgin Australia Group announced changes in its policies earlier this year and has come up with few new changes as a part of its fleet and network review to help manage costs and improve the financial condition of the company amidst the global health disaster due to spread of Coronavirus.
The coronavirus spread has weakened the international and domestic demand with Virgin predicting a $50-$75 million loss in the current financial year.
The Aviation giant is planning to reduce the capacity of the network by three per cent in FY20’s second half. This will result in reductions in the fourth quarter in domestic capacity and short-term capacity on the Tasman to make good of the present conditions.
The change is concentrated in the places where demand is weak and where Virgin Australia and Tigerair are working.
Melbourne-Coffs Harbour, Sydney-Coffs Harbour, Adelaide-Sydney, and Sydney-Cairns Routes are going to see Tigerair exit from 27th April 2020. Hobart-Gold Coast is set to observe Tigerair exit from 28th April 2020. These exits are the new additions to the frequency reduction plan in other existing routes.
Virgin plans on re-accommodating the passengers who have already booked their flights and will communicate with these passengers regarding the same.
The customers of Tigerair are supposed to be re-accommodated onto other Tigerair flights or Virgin Australia Services.
In total, nine A320s are to exit Tigerair’s fleet by October 2020.
Seven are now scheduled to exit with the two announced to exit the fleet in November 2020.
Virgin Australia’s two Boeing 737 aircraft are to be transferred to the Tigerair fleet.
This impact is equivalent to a reduction of five per cent capacity in FY21 according to what Virgin said. Virgin Australia Group CEO and managing director Paul Scurrah said: “There’s no doubt we are operating in a tough market, and we need to make sure our capacity deployment is disciplined to ensure our routes are profitable for our business.
Magazine 
