Virgin Australia is set to lay off between 3000 to 3500 of its 9000 staff, dump international flying and review its WA FIFO operations as it sets a new flightpath in the coronavirus-ravaged airline industry.
The highly anticipated announcement is set to be made this morning to the Australian Securities Exchange with staff and creditors to finally get clarity about the airline’s future.
Bain Capital took control of the airline early last month after a short bidding war with eight suitors after the airline went into administration due to COVID-19.
It is understood that its likely Virgin Australia Regional Airlines, based in Perth, will be retained by the group but that is subject to a final review of its operations and contribution to the group.
However, Virgin Australia’s international arm — which operates both Boeing 777-300ERs and A330s — will be sidelined for the moment.
The 777-300ERs are owned by Virgin Australia and it is not clear what their fate may be.
The domestic fleet will feature only the Boeing 737, with the A330s sent back to their owners, insiders say.
It is understood that the 737 fleet will be reduced to about 40 aircraft with the balance of 39 kept in storage.
Once the pandemic is over the airline plans to look at Boeing 787s to relaunch its international operations to Japan and the US.
The 787 is the aircraft Qantas was using for its Perth to London nonstop service.
There had been speculation that VARA would be sold off but Virgin management recently signed off new leases on two 95-seat Fokker 100s.
The remaining fleet of nine Fokkers is owned by VARA.
Fly-in, fly-out work has been strong with the Perth-based fleet, which includes six A320s, fully engaged.
Virgin Australia went into voluntary administration on April 21 with debts of A$6.8 billion.
