Virgin Australia will shed about 3000 jobs and cull its low-cost subsidiary Tigerair Australia as it rebrands as a “value airline”, it announced this morning.

The job cuts affect about one third of the Brisbane-based airline’s workforce, across cabin crew, ground crew, engineers, baggage handlers and some international head office staff.

The company will also suspend all long-haul international flights, and will transition to a single Boeing 737 fleet for domestic and short-haul international travel.

Virgin Australia’s lounges will remain closed for the foreseeable future, due to a lack of demand during the COVID-19 pandemic.

Travel credits will be honoured until June 2023.