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Virgin Australia to axe one-third of workforce, focus on short haul under Bain

Credit: REUTERS/Loren Elliott

Virgin Australia Holdings Ltd said on Wednesday it would make permanent cuts to one-third of its workforce and focus on being a short-haul Boeing Co 737 operator as part of a new business plan under the ownership of Bain Capital.

SYDNEY, Aug 5 (Reuters) - Virgin Australia Holdings Ltd VAH.AX said on Wednesday it would make permanent cuts to one-third of its workforce and focus on being a short-haul Boeing Co BA.N 737 operator as part of a new business plan under the ownership of Bain Capital.

The country's second-biggest airline had entered voluntary administration in April owing nearly A$7 billion to creditors, having been unprofitable for seven consecutive years before the coronavirus pandemic hit.

Virgin said 3,000 of its 9,000 staff would be affected by the cuts.

Large rival Qantas Airways Ltd QAN.AX has also announced plans to cut at least 20% of its workforce due to the decline in demand caused by the pandemic and associated travel restrictions.

(Reporting by Jamie Freed; Editing by Muralikumar Anantharaman)

((Jamie.Freed@thomsonreuters.com;))

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

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