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