The Aviation Industry is witnessing a major downturn in Australia and New Zealand. With Qantas and Air New Zealand reporting losses in recent times. Virgin Australia, in a recent announcement, stated that it will be merging its three operations; Virgin Australia, Virgin Australia Regionala and the budget carrier Tigerair under one roof. This move will prove to be calamitous for the 750 employees, who will lose their jobs as a result of this.
Virgin Australia has reported a full year loss of $349.1m owing to a difficult trading environment, rising fuel prices and the dwindling Australian dollar. The ‘restructuring’ is aimed at battling these issues to gain a semblance of stability.
Virgin Australia is rightsizing its employee populace, wherein out of the 10,000 employees, 750 will see the exit, the majority of which look set to be borne by staff at the airline’s headquarters in Brisbane. This year has been the seventh consecutive year of loss for the group, prompting them to take the action.
Virgin Australia chief executive Paul Scurrah said, “Decisions which have a direct impact on people’s livelihoods are never made lightly, and I regret the need to reduce the size of our workforce so quickly. However, today’s financial results tell us loud and clear that we need to reduce costs.”
As a strategy to minimize losses further, the group will also cancel non-performing routes. “The group intends to further reduce flying across elements of its short-haul international and domestic network to meet demand and maximize route profitability,” the airline said.