In bankruptcy, Virgin Australia is reorganizing. Give up long flights and switch to an all Boeing 737 fleet.
On April 20, Virgin Australia applied to enter the reorganization process, after almost 20 years of operation. The collapse of Virginia Australia is the largest in the history of Australia.
On August 5, Virgin Australia also unveiled the reorganization plan. It includes mass layoffs, fleet reconfiguration and the closure of the Tigerair Australia subsidiary.
Virgin Australia is reorganizing
Despite the financial problems, he still found an investor. This is Bain Capital, a private investment company based in Boston, United States. The new investor is willing to provide financial security to Virgin Australia so that it can continue its operations.
Virgin Australia will use this opportunity to build a new, more profitable, competitive and reliable Virgin Australia company. It will start by standardizing its fleet. It will eliminate all ATR-72, Boeing 777 and Airbus A330 aircraft. It will focus on an all Boeing 737 fleet.
At the same time, it will lay off 3000 employees. But with the hope of re-employing them after the crisis generated by COVID-19 will pass. Plus new jobs if all goes according to plan.
Virgin Australia will no longer operate long-haul flights, with the main focus being on the domestic and regional operational network.
Bain Capital is a company specialized in private investments. It manages $ 105 billion in assets. It promises to cover all Virgin Australia debts, including debts to passengers affected by canceled flights.