Virgin Australia has hired global aviation consultant John Thomas to lead its main domestic and international operations as part of a major restructure of the airline that will cut management jobs by 10 per cent.

Mr Thomas, the man credited with introducing baggage charges to help save North American airlines in the wake of the global financial crisis, has been appointed to a new position group executive, Virgin Australia Airlines. He will oversee Virgin's biggest business and report directly to chief executive John Borghetti.