Virgin Australia is preparing to rise from its ashes

Virgin Australia, Australia’s second largest airline, is preparing to rise from its ashes.

Firstly, let’s take a brief look at the history of the company.

“Virgin Australia was launched as Virgin Blue, as a low-cost airline in August 2000, with two Boeing 737–400 aircrafts, one of which was leased from then-sister airline Virgin Express. Initially offering seven return flights a day between Brisbane and Sydney, this has since been expanded to cover all major Australian cities and many holiday destinations. The Virgin Blue name was the result of an open competition which was a play on the predominantly red livery and the Australian slang tradition of calling a red-headed male ‘Blue’ or ‘Bluey’.”

“In early 2006, Virgin Blue announced its intention to operate up to seven flights a week to USA through either Los Angeles or San Francisco. At the time, only Qantas and United Airlines competed in the Australia-USA Transpacific market. The airline was given permission for ten flights a week to USA by Australian regulators on 24 July 2007. The plans were approved by USA regulators on 15 February 2008 due to the signing of an open skies agreement between Australia and USA. Instead of using its existing brand, Virgin Blue launched a fully owned subsidiary with a separate Air Operator’s Certificate, named “V Australia” as the result of a public naming competition with a fleet of five specifically branded 777-300ERs”.

Virgin Australia, which “voluntarily” went into trustee management in April 2020 due to the Covid-19 crisis, worked on a transformation plan for the rest of the time. Backed by investment firm Bain Capital, which acquired Virgin Australia in June, the plan aims to create a stronger, more profitable, and more competitive airline. Virgin Australia, which currently has flights to 28 destinations across the country, will focus primarily on domestic and short-distance international routes in the new period. Two major long-range lines, such as Los Angeles and Tokyo, will only be restarted after the market picks up.

Tigerair Australia will be closed

Tigerair Australia, a sub-brand of the company and serving in the domestic ultra-low-cost carrier segment, will be closed.

 ATR 72, Airbus A320, A330 and Boeing 777 type aircrafts will be removed from the fleet and the entire fleet will consist of Boeing 737 type aircrafts. Thus, the fleet size will be reduced to around 80 aircrafts. One third of the workforce of approximately 9,000 people will be laid off. There will be reconsideration with all suppliers and existing contracts will be reviewed. Large investments will be made in digital platforms.

Virgin Australia-Fares from just 69$

Virgin Australia announces a new campaign on 2 July 2020. They launched a comeback sale by “Fares from just 69$”.

– 125,000 fares starting from just $69 went on sale Thursday 2 July
– Business class fares from $250
– Fares available between specific destinations for selected travel dates between 13 July to 31 August 2020.

Ultimately, if the implementation of this plan is successful, a much stronger Virgin Australia will be born than before the crisis.

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