Virgin Australia plans to scale down its operations under new U.S. owners and shed a third of its staff as the carrier adjusts to the pandemic, the nation’s second-largest airline said on Wednesday. The Virgin Australia Group chief executive and managing director Paul Scurrah announced plans to cut 3,000 jobs plus long-haul flights from Australia to Los Angeles and Tokyo to try to reset the business for lower global demand. Backed by Bain Capital, with more than US$100 billion assets under management, Virgin Australia would have “a strong balance sheet to withstand material future shocks to the industry,” Scurrah said. Virgin Australia’s major shareholders are Singapore Airlines and Etihad Airways and Chinese investment conglomerates Nanshan Group and HNA Group. The airline sought bankruptcy protection after the Australian government refused its request for a AU$1.4 billion (US$1 billion) loan.

Source: The Standard August 05, 2020 05:37 UTC