News
Virgin Australia announces 80% of jobs to go at the group and suspension of operations at LCC, Tigerair
March 27th 2020
Virgin Australia (VA) said this week it would temporarily stand down about 80% of its 10,000-strong workforce and suspend operations at its low-cost carrier (LCC), Tigerair Australia, to cut costs in a market decimated by the coronavirus pandemic. Read More »
The airline group planned to cut domestic capacity by 90% and drop flights to 17 destinations in Australia until at least the middle of June. Its network will be reduced to 17 destinations. Some 125 of the airline group's 132 aircraft – at December 31, 2019 – will be grounded.
VA Group CEO, Paul Scurrah, said there had "never been a travel environment in Australia as restricted as the one we see today. The extraordinary steps we have taken have been in response to the latest travel advice from [Australian] federal and state governments”.
“We plan to return Tigerair and Virgin Australia to the skies as soon as it is viable to do so, however I am mindful that how we operate today may look different when we get to the other side of this crisis," Scurrah said on March 25.
The VA boss said his focus is guiding the company through the crisis and ensuring the business was on a sustainable path when the recovery eventually came.
Other survival measures in the pipeline include a proposal to close VA’s New Zealand cabin crew and pilot base and Tigerair Australia’s Melbourne pilot base.
Scurrah said staff stood down would take annual leave and leave without pay, with the airline working with more than 25 partners to identify short and long-term redeployment options.
“I am only too aware of how much our people are hurting at the moment and these very tough decisions have weighed heavily on me and my leadership team," Scurrah said.
"We are talking to our teams and we are working hard to do what we can to protect jobs and extend payments for as long as possible."
