Budget airline Tigerair killed off
Virgin Australia will axe 3000 jobs and dump its budget carrier Tigerair after the coronavirus pandemic caused lower demand for domestic and international travel.
In an update lodged to the Australian Stock Exchange on Wednesday morning, Virgin said it would discontinue Tigerair Australia and suspend all long-haul international fights.
Virgin scrapped the low-cost carrier due to a lack of demand to support two brands within Australia's aviation market.
The company said it would retain its Air Operator Certificate to give it the option to bring back a low-cost carrier in the future "when the domestic market can support it".
The company will cut 3000 roles from its 9000-strong workforce as part of a simplification strategy.
Virgin Australia will remove ATR, Boeing 777, Airbus A330 and Tigerair A320 aircraft from its fleet.
Virgin Australia entered voluntary administration in March after the grounding of the aviation industry due to COVID-19.
Virgin Australia chief executive Paul Scurrah said the aviation industry continued to face uncertainty with passenger numbers less than 3 per cent compared to last year.
"Demand for domestic and short-haul international travel is likely to take at least three years to return to pre-COVID-19 levels, with the real chance it could be longer, which means as a business we must make changes to ensure the Virgin Australia Group is successful in this new world," he said.
More to come
Originally published as Budget airline Tigerair killed off