Key points:

• Plan for a stronger, more profitable and competitive Virgin Australia coming out of voluntary administration
• Focus on delivering exceptional experiences at great value with Virgin Australia’s core domestic and short-haul international business
• Virgin Australia to provide customers with the value of travel credits post administration with validity dates extended for bookings made prior to administration
• Resetting Virgin Australia to meet lower global and Australian demand, including:
• Reduction in cost base to meet sector uncertainty and COVID-19 market conditions
• Securing approximately 6,000 jobs when the market recovers with 3,000 roles impacted
• Simplified all-Boeing 737 mainline fleet and the retention of the regional and charter fleet, but removing ATR, Boeing 777, Airbus A330 and Tigerair Airbus A320 aircraft types.
• Long-haul international flying important part of plan but suspended until global travel market recovers
• Tigerair Australia brand discontinued with Air Operator Certificate (AOC) retained to provide option for ultra-low-cost operations when market recovers.
• Continued commitment to regional and charter flying.

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Virgin Australia has revealed plans to make about a third of its workforce redundant, with approximately 3,000 jobs expected to go under new owners Bain Capital, while 6,000 staff remain.

The private equity firm's plan for the airline sees the end of the Tiger Australia brand, although Virgin Australia said it would retain the air operator certificate so it could revive a low-cost carrier when the domestic holiday travel market fully recovered.

A key part of the plan is to operate an all Boeing 737 mainline fleet, with other aircraft types restricted to regional routes and charters.

This will mean removing ATRs, Boeing 777s, Airbus A330s and Tiger's Airbus A320s from the airline's fleet.

Virgin Australia chief executive Paul Scurrah said the airline had no choice but to shrink to survive amid the COVID-19 pandemic.
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Virgin Australia entered voluntary administration on April 21, weighed down by debts of $6.8 billion and facing a travel market gutted by the coronavirus pandemic. The flight path out of administration will also be long and bumpy, expects Virgin Australia CEO Paul Scurrah, who will remain to steer Virgin into this new era.

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“We have worked closely with Virgin management since the binding agreement was signed to develop this strategy together for a stronger, more profitable and competitive Virgin Australia," noted Bain Capital's local managing director Mike Murphy. "We reaffirm that we are backing Paul to successfully lead Virgin through the current turbulence and into the future.

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No mention has been made of how many of those jets will be in the hangars. Virgin owns some 40 Boeing 737s, all of which will likely remain on deck, while Bain could supplement that by cherry-picking the best deals from among the current roster of leasing companies who hold the keys to another 40 Boeing 737s.
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