Virgin Australia has announced a fresh strategy under its new owner Bain Capital that involves cutting costs, and jobs.
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About 3000 jobs will go at Virgin Australia under a trimmed-down vision of the carrier, which has been hit by the turmoil in the aviation market caused by the coronavirus pandemic.
The carrier, which has been taken over by Bain Capital, says its plan to cut costs, shed aircraft and refocus on domestic and short-haul international travel means it can't support more than 6000 jobs.
"While these changes are important to manage the impact of COVID-19, they involve some very tough decisions," Virgin Australia chief executive and managing director Paul Scurrah said on Wednesday.
"We expect approximately 3000 jobs will be impacted as a result of the changes."
But when the aviation market recovers, Virgin plans to pick up 2000 extra workers, although it warns that might not be for some time.
The group has been struggling under billions of dollars worth of debt and the impact of the pandemic on the passenger jet market, which has led to the near-collapse of international travel and a huge slump in domestic markets.
Its woes attracted a pack of private equity firms and other interested parties keen to acquire the airline, leading to a prolonged bidding process that ultimately resulted in Bain Capital coming out on top.
AAP
